Rentals in Dallas and Tarrant county
Is it really possible to make money on rentals in Dallas and Tarrant County anymore ?
I am finding that the prices and rents have increased very disproportionately so that it's hard to hit the 50% number. I mean with lowest down payment of 20-30% and commercial loans (@ 5-7%) the rents will rarely be double of the mortgage payment. The market is flooded with wholesalers and its hard to tell how deep is the chain of wholesalers in a particular deal. On duplexes I run the numbers and make offers which leaves $100 /door profit, I know that’s like walking on ice. One missed rent payment or an eviction wipes out 6 months profit. Even then I am getting out bid by other investors. 1 % rent on price is also very hard to get.
Do you see something similar to what I am seeing and what options do you see for out of state investors in this situation?
Most Popular Reply
Is it possible to make money on rentals in Dallas and Tarrant? Yes. Is it easy? No. Pretty much any deal is going to (1) need to be off market; and (2) not offered to you through one of these blast email wholesalers or turnkey companies. (Duplexes are very tough to make work as they are much sought after.) I wouldn't touch DFW if I was an out-of-state investor unless I had significant boots on the ground or a partner here. Just my observations.