Before you can invest in a Dallas-Fort Worth rental property, you’ll need to know what your investment goals are. That’s what will drive the decisions you make about where you invest and what kind of property you buy.
There are some great options in this market. Generally, we drive investors towards single-family homes with three bedrooms, two bathrooms, and some outside space. This is what a lot of well-qualified tenants are looking for.
But, there are other options too, and they make excellent investment properties. What’s really important is location and property condition.
First: Establish Those Investment Goals
Every investor is different, and the right investment property for one buyer might not be the right investment property for you. Finding the best investment depends on setting specific and attainable investment goals.
Establish what you’re looking for and why. This will drive how you approach the Dallas-Fort Worth market and what you look for specifically when you’re choosing the best possible property to buy.
The Location is Desirable to Tenants
You don’t have to be an experienced real estate investor to know that location matters. It matters to buyers and it matters to tenants.
Most of the renters in Dallas-Fort Worth want to be close to work, schools, and shopping. Many of the new residents moving into DFW from other cities want a walkable neighborhood. Tenants with families will be looking at school districts.
Look for a property that’s accessible and easy for commuters, students, and families. Buying something too remote will only result in a long vacancy or a lower rental value.
Well-Maintained Dallas-Fort Worth Properties are Always in Demand
It’s often tempting to buy a fixer-upper. After all, the price is usually attractive, and you can get excited about putting your own touches on the home. But, remember this isn’t a home you’re living in yourself. It’s a rental property, and you’re going to want to collect rent as soon as possible.
Investing in a property that isn’t in great condition or ready for the rental market means that you’ll have to sink a lot of resources into it and spend a lot of time fixing it up. You can’t afford that as an investor. Look for a well-maintained property that tenants will find attractive and appealing. Have it inspected before you buy it. Talk to a property manager so you’ll know if any repairs or updates will be needed before you list it on the Dallas-Fort Worth rental market.
Good Investment Properties Earn Money
Location and condition are critical when you’re choosing an investment property. You also have to make sure it makes you some money. Take a look at what you’ll spend on it and what you can expect for rental income.
Your property manager partner should be able to conduct a comparative market analysis that tells you what kind of rent you can expect. Compare this to the expenses you’ll face, including:
- Vacancy time
- Repairs and maintenance
- Management fees and other professional costs
Make sure you’re comfortable with the cash flow that you’ll earn. No one invests in property to lose money, and in Dallas-Fort Worth, you shouldn’t have to.
There’s a lot more to consider before you buy an investment property in Dallas-Fort Worth. Think about whether a single-family home or a multi-family unit is better for you. There are challenges and rewards to each type of property. You’ll need to decide how you’re going to finance your purchase, and what that will mean for your cash flow and ROI.
If you’d like some help thinking through your options, contact us at Assign Property Management. We know the market well, and we can show you some of the best opportunities for investment homes.