Home Buying in Plano>Question Details

Plano Rental…, Home Buyer in Plano, TX

I am interested in buying a rental property in Plano.

Asked by Plano Rental Property, Plano, TX Sun May 30, 2010

Is it advisable to buy a rental property in Plano? I am looking at buying a rental property which is cash flow positive or break even.

Is it advisable to buy a town house or single family home or condo for rental properties in Plano. Also I was thinking of buying it in a good school area and that would mean in West Plano. Please advise the areas for high rental potential and which can generate positive cash flow.

What would be the price range for such properties?

What other areas have good rental potential? What abt Frisco or Irving?

Help the community by answering this question:


Unfortunately, you and about 10,000 other investors think the exact same way, which has bid up the pricing in west Plano. There are other nice places to invest where the cash flow is less negative, but for true positive cash flow you likely will not find what you're looking for in highly desirable areas.

As an investor your goal is probably to have a small positive flow each month (that grows). If the houses are priced at $x per square foot, then the monthly PITI will calculate out to around 90% of x to give positive cash flow. This ignores continuing maintenance cost and down payment/closing costs invested upfront.

Rentals in Plano tend to rent around $.75 psf but min and max are much wider $.60-$1.10. Your target investment requiring a cost of $.54 to $.99 psf, average $.68 PITI is difficult to find. The price range for houses under $200k with 1,500 sf or more calculates to a PITI of $.83 psf on average, $.76 to $1.02. So, only a limited number of the properties can provide sufficient income even to pay the mortgage, much less to provide positive income. Even with initial depreciation flow of 0.27% of price cash flow will be meager.

Ask your Realtor to help you locate areas where rental prices more closely track the sales prices.
Web Reference: http://www.SumnerRealty.com
2 votes Thank Flag Link Sun May 30, 2010
My brokerage is well-know in the Plano area when it comes to property management and has been in the same location since 1973. I know of several nieghborhoods that fair well when it comes to leasing single family homes. Ronda is correct in that there are several areas with good schools that do well with rentals. What is the range of pricing you are looking to buy in to?
0 votes Thank Flag Link Mon Aug 16, 2010
Hi, If you are really intersting to purchase rental property in Plano area, I am a realtor can help you out. Recently I just helped a client purchase a rental property in Plano area. So far the client happy with it. For investment, you can buy any desired DFW areas not just have to be in Plano. As far as school, Plano East also considers a good school area. the price range is different from area to area. In Dallas, you can find a rental 1 bedroom condo with 1 car garage less than 35K. Therefore it depends on how much you plan to invest...

If you need more information, please feel free to email me at twong@txdfwhome.com
0 votes Thank Flag Link Thu Jul 8, 2010
In reply to Ronda and Summer, which city you consider best place to invest in north Dallas..? Frisco, Plano, Allen or McKinney..?
0 votes Thank Flag Link Thu Jun 17, 2010
T.E. is correct. Plano, Frisco, Irving, and every other subdivision in the Dallas/Fort Worth Metroplex is ripe for purchase by a property investor to be flipped or turned into a rental property.

Single family is the most popular investment purchase I'm seeing right now, and has been for the last three years.

Keep in mind that 'good school area' includes more than just West Plano. You're making that assumption off reputation. There are plenty of great schools in the North Dallas suburbs.

As for where you invest, there are too many other questions that would have to be posed to you to determine the 'where?' in this setting. Feel free to call and set up an appointment and we can talk more specifically about your goals. My offices are in Plano and Prosper.

Have a blessed day!
0 votes Thank Flag Link Fri Jun 4, 2010
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