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Dallas Investment Properties & Real Estate Outlook

If you’re looking for one of the best places to invest in real estate, Dallas should be at the top of your list. Not only is Dallas one of the most famous cities in the United States to live in, but it’s quickly become a popular area for businesses too, with many companies moving from more expensive places like San Francisco and Los Angeles to Dallas.

If you’re on the hunt for your next real estate investment, here’s why you may want to consider investing in Dallas.

Reasons to Consider Investing in Dallas

Dallas is a gorgeous city with plenty of recreation and resources, giving residents and visitors a lot to do. But as an investor, you care about the economy, population, and rental rates – here’s what you can expect.

Renting Is Cheaper

It makes more sense to rent in some cities than buy, and Dallas is one of them. As an investor, though, you can make high profits if you are one of the landlords’ tenants’ rent from. In addition, with a large rental pool, it’s easy to keep your investment property occupied, which in some areas is not an easy task.

Population Is Growing Fast

The Dallas population grew just over 1.5% in 2020 alone, and this is excellent news for investors since many of those moving to Dallas will need to rent; not all will be homebuyers. Moreover, since Dallas was already a large city, the demand for housing will increase even more with the higher population.

No Income Tax

One thing that draws people to the area is the lack of income tax, and this is throughout Texas, but there also isn’t any local tax in Dallas, which means residents keep more of their paycheck, leaving them more money to cover expenses such as rent.

The Employment Rates Are High

Dallas is a hub of activity in many industries, including startup companies. Entrepreneurs flock to the area for its resources (and lack of income tax), but the site is also bustling with financial services, business service sectors, and construction jobs.

Strong Economy

Even throughout 2020, Dallas remained strong, primarily due to its substantial oil business, but other sectors contributed. The strong economy made it possible for more investors to purchase homes in the area, giving renters many options to choose from, whether cheap apartments or more expensive single-family homes. In addition, the strong economy keeps attracting more people to the site, which means a continued need for more rental properties.

Low Cost of Living

Renters often flock to areas with a low cost of living. It makes their paychecks go further and makes them able to stay on track with their bills. With the low cost of living in Dallas, it makes sense that investors would buy homes here and cater to the many people flocking to the area to enjoy the low cost of living.

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The Most Recent Dallas Investment Property Trends

Home Values

In the last year, Dallas homes have appreciated 12.3%, and they aren’t slowing down. Investing in the area allows you to jump on the bandwagon and ride the wave to the top. There’s nothing better than instant appreciation and equity in a home you invested in. Even if you only keep the house for a couple of years, you could walk away with a decent profit.

Rent Prices

Rent prices in Dallas have continually increased through the years, even with the pandemic. As a result, investors in it for the long haul will see increasing rental income through the years. Dallas rent prices rose faster than the national average and are on target to continue doing the same for the next few years.

Inventory

Right now, Dallas is a seller’s market because of the lack of inventory. Buyers interested in buying an investment property in Dallas should use a service like Roofstock Marketplace to locate the best buys in the area.

A seller’s market means homes sell fast and usually for top dollar, but when you work with a marketplace like Roofstock, you’ll get early access to the hottest properties at the best prices, allowing you to get in on the action in Dallas.

Unemployment

Unemployment rates remain steady in Texas and Dallas specifically. While they are slightly higher than the national average at 6.5% versus the national average of 5.8%, today’s unemployment rate is half of what it was in Dallas one year ago.

Median Home Price

The median price of homes in the Dallas area is around $291,000, which is an excellent price for investors looking to buy and hold. With appreciating values, prices will only continue to increase, so if you invest now, you’ll be a part of that appreciation and make a decent return on your investment.

How to Find a Dallas Rental Property

If you’ve decided Dallas is a place you want to invest, it’s time to find a Dallas rental property. Unfortunately, with the hot sellers’ market going on right now, it’s hard to walk in and buy a home – you have to be strategic in your efforts.

Here are a few key ways to find a Dallas rental property:

  • Watch the MLS – You have to jump on listings as soon as they happen. On average, homes are selling in 24 days, but they have offers within a few days or sometimes a few hours. If you aren’t a licensed real estate agent, you’ll need to get with one who will watch the MLS like a hawk for you so you can jump on listings that fall in your price range.
  • Hire a real estate agent – If you don’t want to do the legwork yourself, you can work with an experienced real estate agent that understands investment properties. Since you’re an investor, you’re looking for different things in a property. You want a property that attracts a large audience, not one that just suits your tastes. Working with a real estate agent may cost you more money, though, since sellers need to account for the real estate agent’s commissions by increasing the prices.
  • Sign up for Roofstock Marketplace – If you want a marketplace that focuses only on investors, Roofstock Marketplace has what you need. The marketplace works with buyers and sellers of investment properties. Anyone can browse the market for free, looking at properties in the Dallas area and learning all about it, including its financials, to help them make an informed decision.

What to Look for in a Rental Property

When you’re ready to buy a home in Dallas for your rental property, it’s essential to know what to look for so you get the best bang for your buck and increase your chance of making regular cash flow and profits.

  • Reasonable rent in the area – First, find out the average rent in the area. The rent you charge will be compared to the middle market rent, and you’ll have trouble getting higher rents even if the home is better. Do your research to find out the average rent in the area, so you know what you’re up against.
  • Gauge the interest in the area – Not all sites are attractive to renters. Look around and see how much of the area are renters and how much is homeowners. You want a room with a large pool of renters, so you have a larger audience to choose from when your house becomes vacant.
  • Look at the school ratings – Many renters have young children, so the school ratings are essential. Even if they don’t have kids yet plan on it; they want a home in an area knowing they can send their children. Focus on areas with high school ratings.
  • Look at the crime rate – Areas of high crime rates have low rental rates. People don’t want to live where the crime is, so make sure you know the area and how safe it is before investing there.
  • Check out the amenities – Renters want convenience. They want supermarkets, churches, schools, playgrounds, and shopping malls near them. They also enjoy easy access to highways and public transportation.

How Roofstock Can Help You Find a Dallas Property

If you’re in the market for a Dallas rental property, let Roofstock Marketplace help you. The marketplace is unlike any other service available today. Whether you’re a first-time investor or you’ve done this before, here’s what you can expect:

  • A large selection of homes to choose from is meant for investors. Many of the homes have renters in them with an active lease. If you buy the property, you buy it with tenants and become an instant landlord earning instant cash flow.
  • Access to all the essential information you need to make an investment decision. Roofstock crunches all the numbers, does the research, and provides you with the details. You can browse the marketplace yourself to see what information they offer to see how easy it is to make an investment decision.
  • An easy-to-use website. No one wants a website that’s hard to use. Buying a home is frustrating enough, and if you have to navigate technology too, it becomes frustrating. Roofstock’s website is easy to navigate, and you quickly find the information you want.
  • Roofstock charges low prices. Buyers can browse the marketplace for free. Once you place a bid on a home and it’s accepted, Roofstock charges 0.5% of the sales price or $500, whichever is higher, and this is much lower than the fees charged by real estate agents, which means you’ll likely get a home for a lower price, and it will have tenants in it.
  • Information about the current tenants and the property lease. Before you buy a property with tenants in it, you need to know the lease terms, the tenant’s payment habits, and anything else to know about them. Roofstock gets all this information for buyers before they even list it on their website.
  • Roofstock certifies properties. They don’t list every property sellers come to them with – they only list the properties that pass the Roofstock certification process, which means the home is in good condition, its financials are transparent, and the tenants are trustworthy.

The Bottom Line

Dallas is a hotspot for real estate right now, especially for investors. As prices continue to climb, now is the perfect time to jump on board. Whether you’ve never invested before or you have, this is a great area to make some money and monthly cash flow.

Roofstock offers a wide selection of properties in Dallas all the time. So check back often to see what properties are available. Even if you live halfway across the country, Roofstock can match you with a property management company that can handle the day-to-day operation of renting a property out. All you have to do is collect a check and enjoy your monthly cash flow.

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