Thanks for your question. We were checking on one of our rental properties that our buyer is looking to sell when you wrote this, so are just getting back to the office.
Frisco and McKinney constantly vie for the fastest growing cities with a population under 100,000 (I think) in the US, so this area is definitely a winner! Lots of jobs in the Frisco and Plano areas and super schools. Many renters want to rent in this area and because of the constriction on credit, they may have money and good jobs, but no credit. It's an excellent time to consider buying an investment home in this market where prices are low and interest rates are at historic lows.
You'll want to be very judicious with your financing. The finance piece is the critical component to make sure you'll cash flow. Depending on the property you choose and your down payment and then the comps for rentals in the area and how your property compares to those that are renting is when it'll cash flow. We have many trusted allies in the business whom we've done hundreds of transactions with who can help you with this part of the equation.
James Gaines, an economist for A&M's Real Estate Center says "The irony is that this year and into next may just turn out to be a once-in-a-lifetime opportunity to buy a home at the best price with the best interest rate."
The just-released "Housing in Crisis: When Will Metro Markets Recover?" predicts that nearly 62 percent of the nation's 381 metro areas will experience double-digit peak-to-trough declines in housing prices. According to Steve Brown at the Dallas Morning News, Those declines will be more than 20 percent in about 100 metro areas, says the forecast by Economy.com and Fiserv Lending Solutions. The report predicts that Dallas-Fort Worth home prices should bottom out in the third quarter of this year and will be a fraction of the losses nationwide. Nationwide, the analysts expect house prices to fall more than 36 percent from their peak in 2006.
In the D/FW area, overall house price declines should be less than 2 percent by the time the market hits bottom in the third quarter, the analysts forecast.
Most major Texas cities -- including D/FW -- went into the home market downturn later than the rest of the country and will level off ahead of the U.S. average, the analysts say. The worst total price declines are -- no surprise -- in California and Florida.
We'd be happy to help if you choose to pursue this avenue. If we can help in any way, please let us know.