First time investor - looking at Sherman/Denison,TX?

Question

Hi All:

I just moved to North Texas and am trying to acclimate myself with the different areas in order to select a good place to invest. I'm looking at buy and hold SF properties and would like to spend about $200,000 (give or take a little) where I can force about 10-20% appreciation with some repairs (changing dining room to bedroom/cosmetic things - no foundation work). I was initially looking at garland/irving/richardson but realize that unless I have all cash, investments in these area's may be very difficult to attain. A Realtor recently suggested the Denison/Sherman area which I started looking into and noticed that the housing prices are definitely within reach, and the rents seem to be high enough to balance and even provide a good cash-on-cash return. In comparison to the rest of north Texas, the area hasn't seemed to appreciate as rapidly but definitely has been stable throughout the past 10 years. I was wondering if anyone had any experience with this area or suggestions for other areas that would meet my criteria. I'm looking to buy 2 investment properties/year and want to make sure to be profiting from them, but given that this is my first one -  I just want to make sure I can break even!

Thanks so much, your input is appreciated.

Taylor

Roland Brown · Answer

@Dhiraj Chhabra

Hello all,

I’m a Realtor in the area,  I’m always glad to run comps as you prep to rent or sale, Zillow is a little out of the real price these days

Taylor Martel · Answer

Hi Tyler,

Thanks so much for this response! What areas in fort worth? I dont mind putting work in as long as it's cosmetic and not foundational. If you hear of any good areas,  please be sure to let me know. I met a realtor who lives there and will be picking her brain a lot over the next few weeks/ months.

Best,

Taylor

Dhiraj Chhabra · Answer

I live in McKinney and own couple of properties in the area. But I haven't done brrrr yet and in Middle of my first transaction based out of Sherman. I would love to connect with fellow investors and probably make a solid accountability group for all members to grow together based on each other's learnings. Anyone interested ?

Oluyomi A. · Answer

@Taylor Martel, I'm following this post.

Looking to do my second buy but first Brrrr by next month.

My thought so far is find a brick home with no foundation issues, ARV < $200k for a 3/2, and rents of ~$1500. Not sure what location yet though.

Sandeep Reddy · Answer

Thoughts on Sherman, TX in 2020 ?

Javonte Wimbish. · Answer

Are you still looking ?

Tyler Herman · Answer

I don't own anything there but I know a lot of people are thinking along the same line as you, so Denison and Sherman are getting a little picked over. If you're willing to do some work to improve a property maybe you can find something decent.

If you're not looking to do the work yourself, I'd start looking further north. Oklahoma cash flows a lot better and has lower property tax. Or try over in Fort Worth.

Harrison Sharp · Answer

following as I want to buy within the first area and have had the same realization as you in the last month after analyzing deals through MLS

First time investor - looking at Sherman/Denison,TX?

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