Author Topic: Buying rental property in the DFW area  (Read 4037 times)

Baylor3217

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Buying rental property in the DFW area
« on: March 31, 2013, 01:53:39 PM »
I've been re-evaluating several investment options for some cash here recently and have always read about rental properties, but never acquired any.

Anyone have any experience here and in this area?

What is the best go to resource for a beginner to learn how to value a property and estimate the cash flow properly?

matchewed

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Re: Buying rental property in the DFW area
« Reply #1 on: March 31, 2013, 01:59:22 PM »
Biggerpockets.com is the one most commonly referred to for research.

honobob

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Re: Buying rental property in the DFW area
« Reply #2 on: April 01, 2013, 07:14:02 PM »
I've been re-evaluating several investment options for some cash here recently and have always read about rental properties, but never acquired any.

Anyone have any experience here and in this area?

What is the best go to resource for a beginner to learn how to value a property and estimate the cash flow properly?

You should know what the appreciation rate has been over the last 30 years and what rent increases have been over the last 20. Check neighborhoodscout.com Before the internet math police arrive check how they report average annual appreciation. 

http://www.bizjournals.com/dallas/news/2013/03/29/california-billionaire-buys-up-homes.html?ana=e_vert&u=snqD/PXKN43Dl8N+YwTR3NON2Wg
« Last Edit: April 02, 2013, 07:20:51 PM by honobob »

KingCoin

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Re: Buying rental property in the DFW area
« Reply #3 on: April 02, 2013, 07:55:35 AM »
Are you investing locally? Do you plan on managing the property yourself?

Memphis Invest has an arm that operates in DFW. You can send them an email and they'll send you the details of a few properties currently on offer. This will include a spreadsheet that runs the numbers on a few different financing scenarios. You should add some assumptions about vacancy rate and ongoing repairs (maybe 8% each) to arrive at a more realistic number than they're pitching. I'm not necessarily recommending you invest through the company, but I think it would be a good jumping off point. If you have a willingness to manage, renovate, or source properties yourself, you can probably do considerably better.

honobob

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Re: Buying rental property in the DFW area
« Reply #4 on: April 02, 2013, 08:31:14 AM »
http://www.neighborhoodscout.com/tx/dallas/winnwood-rd/#rates 
This neighborhood has appreciation six times more than Dallas in general since 1990.  It pays to know your neighborhood. 
« Last Edit: April 02, 2013, 08:34:44 AM by honobob »

meadow lark

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Re: Buying rental property in the DFW area
« Reply #5 on: April 03, 2013, 12:36:00 PM »
Cool website.

honobob

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en dub

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Re: Buying rental property in the DFW area
« Reply #7 on: May 01, 2013, 04:25:43 PM »
I learned through a group called Lifestyles Unlimited, based out of Irving.

It's a mentoring program and they charge a fee but it's very reasonable (something like $500/year) and I personally feel like I've gotten way more than my money's worth out it. They offer all kinds of workshops, case studies, guest speakers and such. I'm pretty sure my membership has lapsed but the case studies are free and so I pop in every once in a while if the presentation looks interesting.