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Old 11-13-2013, 12:10 PM
 
174 posts, read 395,864 times
Reputation: 85

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Hello Everyone,

I truly appreciate all the great advice this forum provides to everyone. I was hoping for some help on questions I had in regards to investing in real estate in the DFW area. My wife and I were thinking of buying a house in the Plano / Murphy / Coppell / Denton area for the sole purpose of renting it out. I'm open to other areas in the metroplex but figured the three I mentioned had good potential for occupants and the type of renters we would want (family with children, good school district and neighborhood that would relatively maintain its home value). Is this type of investment a good idea for the DFW area? Our budget ideally would be 150k - 200k for a single family home. My wife and I would like to start early (we are under 30) in our investing to eventually down the line (15 / 20 years later) own a few homes and have some passive income.
Thanks again in advance for any advice.

Nawv
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Old 11-13-2013, 01:28 PM
 
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If you can find a home in that range in Murphy, I'd very leery of any repairs you'd have to make.
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Old 11-13-2013, 01:57 PM
 
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I think you'd be hard pressed to find a single family home in Murphy or Coppell for under 200K. I'm sure if one is available, it'd definitely be older and in need of some sort of repairs or renovation. I know there are a limited number of townhomes in Coppell. One complex looks kind of run down, but there are units in there for under 150K in Coppell schools. I think they're called Meadowridge condos.

I guess you'd have to evaluate total investment and cost to maintain the property vs the market rent you'd be able to get and see if the numbers make sense. I definitely do think looking in a highly rated schools district is a big plus for potential rentability.
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Old 11-13-2013, 03:04 PM
 
Location: Simmering in DFW
6,952 posts, read 22,597,783 times
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I can only advise you that it makes sense to be a landlord if you live within 10 miles of the property and can manage it yourself. I have a lot of experience as a landlord and network with other landlords extensively. If you are not able to directly monitor the property, you are setting yourself up for a world of hurt.
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Old 11-13-2013, 04:32 PM
 
13,194 posts, read 28,091,857 times
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Quote:
Originally Posted by Squirl View Post
I can only advise you that it makes sense to be a landlord if you live within 10 miles of the property and can manage it yourself. I have a lot of experience as a landlord and network with other landlords extensively. If you are not able to directly monitor the property, you are setting yourself up for a world of hurt.
THIS.

OP, you didn't mention where you live, but Murphy, Denton, and Coppell are all a 30++ minute drive from one another. As a landlord myself, I wouldn't buy any property I couldn't get to in 10 minutes or less. Some tenants take amazingly good care of your property and are self-sufficient. Others are super high maintenance. Still others are property destroyers. You want to easily be able to tend to their needs and the needs of your rental property without rearranging your entire day's schedule.

You also want to be able to drive by a few times a week, especially with a brand new tenant with whom you don't have that trust factor yet. I am lucky that I lived in my rental property and know the neighbors. A few LOVE to give me feedback on my tenants- whether to say how nice they are or to whisper to keep an eye on their pet Since you won't know any neighbors in Denton or wherever, it's even more important to be able to do random drive by's.
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Old 11-13-2013, 04:59 PM
 
16,087 posts, read 40,998,312 times
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Also I would never buy a property in an area with which I am not familiar. I have some but they are in an area I know like the back of my hand. I know the market, zoning and school issues, traffic, crime/lack thereof, proposed/possible/potential development/redevelopment, which stores are doing well, which are closing ... ETC!
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Old 11-13-2013, 05:06 PM
 
Location: DFW
40,920 posts, read 48,822,759 times
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In that price range... Lewisville.
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Old 11-13-2013, 06:44 PM
 
294 posts, read 230,145 times
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I too agree with the comments of being close to the property. Personally I avoid almost all suburban homes at least in the DFW market. The area grew so fast that neighborhoods were developed all at one time sometimes by one builder. As the owners children get out of school the people tend to leave as well and then the area slowly goes down to the point where values will at the most stay flat or continue to slowly go down. Also if you think tenants with children are good bets I would disagree. I only buy in established proven areas inside the 635 loop where there are mainly professional singles. Yes you pay more but you rent for more and appreciation is more likely to occur. I have many tenants who are long time tenants and have no desire to ever own property and take care of their places with pride. Its just hard with say a family of four to not have a lot of wear and tear and maintenance...
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Old 11-13-2013, 08:56 PM
 
174 posts, read 395,864 times
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This has been very insightful. Thank you everyone for the responses. We do own a home in Lewisville and often in the Plano / Coppell area visiting friends and family. It's interesting that Lewisville was mentioned as a possible option, I will definitely have to do some more research.

Would it be wise to get a real estate agent that is familiar with the area and the type of property we should be looking at? Also, I have steered away from properties with HOA fees; should I reconsider this? I did find some condo's near the UTD area that is considerably cheaper but HOA fees have made me question the investment.
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Old 11-13-2013, 10:54 PM
 
3,478 posts, read 6,517,232 times
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Quote:
One complex looks kind of run down, but there are units in there for under 150K in Coppell schools. I think they're called Meadowridge condos.
Check out the HOA fees for this complex...I've heard they are very high. That being said, they rent FAST. There is one on the market right now for $122k
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