Purchasing rental investment in Dallas?

[cdelena]

Originally Posted by galore

I also wonder how being a landlord, if you need a mortgage, can be profitable.
For example, a low end home on 2206 Montalba is listed at $850/month lease. A comparable, if not in worse shape house on the same street is listed for $98k.

At $98k, with 20% down, PI@6.3% is $495. T is $191. I is $75. PITI total runs $761.
So without labor, maintenance, other hassles, you get $89/month. One major maintenance call (like AC replacement) will kill all profits for years!
I have no idea about tax deductions for a landlord but can it be enough to make it worthwhile?

Exactly, and your 20% down of $19,600 is worth another $80 a month. You better be in a location to make some appreciation or it is not a lucrative deal.

I have experience with rentals in Uptown, Murphy, Round Rock, and Houston and none of them would be positive if you had to buy them in today's market. In fact only two of the four are positive now and only because they were purchased some years ago.

[jorywalker]

There is definitely potetial for positive cash flow if you know what areas to invest in. You could also take advantage of some of the HUD homes or foreclosures in this market to help get you even more money. I have worked with several different investors and have even helped friends turn a profit. Good Luck on whatever you decide!

[Lakewooder]

Also don't forget the tax write offs which add to your cash flow - we didn't discuss those before..and your tenant is building your equity.

[momof2dfw]

Ft Worth City Council just passed a stringent landlord inspection process this week. You can probably find the info on the Ft Worth Star-Telegram website.

[Texas-RE-Broker]

We are some of the top renting agents in the area.

The rental market is really good. We are seeing rent increases all over the place. The good thing about the rental market is, it is only going to get better as the buyers that are looking cant get a home.

[killer2021]

I'd stick to the low rent apartments that will rent in the 400-500 range. Seems like during this downturn a lot of people are going to find out that they can't afford 1,000+ rent anymore.

[stan4]

My parents have had 2 rental properties in Dallas since the 70s/80s. There's a solid, steady market here, but the home values just haven't gone up that much at all.

[Lakewooder]

Depends on the location - one of mine has gone up 359% in the last five years according to DCAD. Of course this time of year, that's not good.

[stan4]

Relative to their rental property in California...

Then again, Dallas isn't really known for the 'hot' and 'volatile' real estate market. It's known for a reasonable and stable market.