Home Buying in Dallas>Question Details

Peter Brunton…, Real Estate Pro in San Francisco, CA

I'm looking to invest in the Dallas/Ft. Worth Area

Asked by Peter Brunton, MBA, San Francisco, CA Fri Feb 15, 2008

I'm looking to invest in a duplex in the Dallas/Ft. Worth area and was wondering if it is possible to find a duplex that will bring in positive cash flow with a 20% down payment. Probably looking at spending up to 150k. My first question is what are the prospects for the city? Are the vacancy levels high? Economic prospects for the city? Is the subprime market having a major affect? Etc. I would be interested in being helped by an agent.

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Thanks for your detailed responses. I'm trying to break down costs and was wondering if anyone has the typical property management fees in the area as well real estate taxes. I thought I remember reading somewhere that Texas has higher property taxes.
1 vote Thank Flag Link Sat Feb 16, 2008
Hi Peter,

The property taxes may be high but you can look into other options for commercial loan that will suit your financial plan. The economic prospects for the city are all time great. I have brought myself some properties in the local area with great investment purchase.
0 votes Thank Flag Link Tue Apr 9, 2013
Hello my friend,

This is a somewhat unique opportunity I am also an investor based in the bay area (Napa, CA). I specialize in low level foreclosure purchases across the United States, and I currently have set up my base for several of my clients in the Dallas area.

Please view my website:

stephanpiscano.com

and feel free to contact me on potential investments/partnerships in the Dallas area.

I look forward to speaking with you soon.

Best Regards,

Stephan Pierce
(707)-363-3381
0 votes Thank Flag Link Sun Feb 1, 2009
I think you are on the right track. You probably won't get rich off the cash flow, but you could probably at least get it to break even. I usually plan on rent of about $1400-$1500 for a purchase price of $150,000. Perhaps sllightly less depending on the area. I think prospects for the area still remain good. Vacancy levels are in my opinion low. Probably city wide about 5% or less. Not a lot of new construction for multi family and due to credit cruch still lots of people wanting to rent in many areas. Apts rents are moving up quickly. Full duplex here can be hard to find. Not impossible , but sometimes hard. In that price range you might also consider single family. The economics might work a little better on it.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Feb 16, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Hi Peter,

Property management fees are 10% customarily. Yes, higher property taxes and no state income tax. That is why positive cash flow is not always easy to acheive. Perhaps I could find a single family home that is in an area of escalation, that would need work to be rentable and have a positive cash flow. May also be able to find 1 or 2 condo units that fit this bill also. Write me directly or call if you want to discuss. Thanks.
Web Reference: http://www.HouseHuntDFW.com
0 votes Thank Flag Link Sat Feb 16, 2008
Yes, Peter, you are right about property taxes in the area being high. Texas does not have state income tax so my guess is that is why the property taxes are so high.

The neighborhood where I grew up and where my mother's house is that is on the market is now the place to live! Builders have come in and torn down a lot of the cute little bungalows that had been there for the past 60 years or so and have built McMansions. As these new, more expensive homes have gone up all the property taxes on the older homes have gone up as well. So, in other words, you can have a home that you have owned for 30 or 40 years and your property taxes are based upon the newer homes in the neighborhood.

Again, I've got a great guy for you to talk to that knows the area inside out - I'll give you his email address if you'd like.
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Sat Feb 16, 2008
Dallas or the surrounding areas is not known to have built any duplexes. There are several other options made available for your investment where you can possibly obtain a commercial loan minimize your mgmt for the property. 20% down payment for a property that depends on how you want to structure the overall financial plan. I am a loan officer can have my loan partner work with you for your short and long term business plan. Vacancy rates depends on where the propeerty is located obviously great to purchase a property with tenants all ready there. Dallas in 2008 is listed with approx. 5.54% in real estate increase in value #4 with stable markets this was published in Jan 2008 this news. The subprime market will always play into foreclosure markets however locations is critical. When we work with investors across the country we preview the properties and photo forward all narrative comments and pic's to your attention. Also you will need to have a realtor that knows how to rehab a properties can give you estimates. I have personally bought and sold properties in DFW with rehab, and have a team that can assist including lawn, pool, paint, fence, and etc.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 16, 2008
Hello Peter, The rental market has been doing very well in Dallas for a couple of reasons. We haven't been affected much but the real estate decline that many major cities in the country have experienced (unfortunately for them) and second, lots of people that have lost their homes to foreclosures are finding it difficult to go back into an apartment lifestyle thus rentals of homes have been very very good.

I have been working with 3 different couples that are looking for a house to rent and every house we looked at had about 2-4 applications on it within 48 hours on the market. Landlords are more picky too for that obvious reason.

A duplex in the DFW area for about 150 is achievable and many are on the market with 100% occupancy rate. I usually don't recommend to invest in an area that has a college because of the high turnover rate and make ready cost. Just like any other real estate investment, location is key, schools, insfrastructure, major employers and transportation. The only time I would say that a college area is acceptable is if the subject property is apartment complex with 20+ units.

Naima
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Sat Feb 16, 2008
Hi Peter..

This area is great as far as prospects...no bubble here. Most investors supplement rents most of Dallas...many things become land value. Subprime not affecting us as much as California but certain areas like South Dallas, Cedar Hill, Frisco are impacted. I might recommend some suburbs perhaps Waxahachie perhaps? I am not familiar with occupancy rates there. Perhaps some economically challenged parts of the city but that may present some rental challenges. If you want to call and chat about it give me a buzz at 214-809-2244. Kathy Murray Abio Realty
Web Reference: http://www.HouseHuntDFW.com
0 votes Thank Flag Link Fri Feb 15, 2008
Hi, Peter. I am an agent in Los Angeles, grew up in Dallas and am selling my mother's home in Dallas. I would love to refer you to the agent we are using in Dallas - he would be a great source for you. Let me know if you are interested - I'm sure he could answer all of these questions.
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Fri Feb 15, 2008
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