Skip to content
Marketing Your Property

User Stats

1
Posts
0
Votes
Tyson Z.
0
Votes |
1
Posts

Struggling to find a renter in North Dallas (Sherman)

Tyson Z.
Posted May 10 2023, 09:33

Hi!

New investor here.  We purchased our first property in Sherman, TX (North of Dallas) in October 2022, fixed it up, and listed it around February/March 2023 timeframe through http://avail.co and http://www.zillow.com.  We weren't getting much interest, and decided to use a realtor.  

https://www.coldwellbankerhome...

Even with a realtor, we haven't had much interest.  We had a lease going with 1 renter, but after a delayed deposit payment, and a few other red flags, we decided it wasn't going to be a good fit.  We've lowered the rent from $2,350 in March to $2,000 now.  Our realtor is hosting an open house next weekend.

Can anyone provide any advise?  Is our rent on target for the area?  Are there better marketing strategies?  Did we buy a dud, or in a bad area?  Any advise appreciated!  Thanks!

User Stats

1,078
Posts
1,337
Votes
Randall Alan
Pro Member
  • Investor
  • Lakeland, FL
1,337
Votes |
1,078
Posts
Randall Alan
Pro Member
  • Investor
  • Lakeland, FL
Replied May 10 2023, 10:47
Quote from @Tyson Z.:

Hi!

New investor here.  We purchased our first property in Sherman, TX (North of Dallas) in October 2022, fixed it up, and listed it around February/March 2023 timeframe through http://avail.co and http://www.zillow.com.  We weren't getting much interest, and decided to use a realtor.  

https://www.coldwellbankerhome...

Even with a realtor, we haven't had much interest.  We had a lease going with 1 renter, but after a delayed deposit payment, and a few other red flags, we decided it wasn't going to be a good fit.  We've lowered the rent from $2,350 in March to $2,000 now.  Our realtor is hosting an open house next weekend.

Can anyone provide any advice?  Is our rent on target for the area?  Are there better marketing strategies?  Did we buy a dud, or in a bad area?  Any advice appreciated!  Thanks!

@Tyson Z.

 This Zillow link for comparable rentals pretty much answers your question:

https://www.zillow.com/sherman...

Most similar rentals are priced in the $1700 -$1,800 range.  

Once you reach that price point your rental will rent.  You have to be priced in line with your competition or offer a compelling feature to pay more.  

Also take note that most that are trending higher are probably 10 year old homes, while yours appears a bit older. 

At $2,300 you were likely $400-$500 over  market rent.  You are getting close to the right price at $2,000… but it will likely easily rent at $1,895. 

All the best!

Randy 

User Stats

4,467
Posts
3,828
Votes
Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
3,828
Votes |
4,467
Posts
Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Replied May 11 2023, 21:48

There are a lot of rentals that came on the market in the past few months in Sherman, Denison, and several of the other cities around there.  Lots and investors and not enough tenants right now. There is also someone that bought several new homes that are now on the market.   At least it seems there has not been a race to the bottom to try to attract tenants.  Most people seem to be holding steady on rents with perhaps just a slight decrease on some.

I would say the sweet spot on rent is about $1500/month around Sherman, so for future purchase try to stay in that price range to hit that.   Most of the renters I have worked with over the years there have been more blue collar type, so take that income, and back into the rent.    When we look at rents like $2300 the market is a lot more limited in Sherman for that price range.   

When you look in that general price range in Sherman there are currently 40 homes for rent...and only about 40 that have rented in the past 3 months.   I expect they will rent, but initially it may take a little while.  Hang in there.  Growth is coming.   A little short term pain for long term gain.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes