Feels like I'm being priced out - where can I buy in DFW? Single 30M, work remotely make 200K (Dallas: apartment, lease)

[CoastieOnTheMove]

I've lived in Dallas for 1.5 years now, moved here last year from NYC. Since then, I've seen home prices skyrocket. This is common nationwide though. I currently live in Uptown, but unsure where to look to buy. I have a girlfriend, and we are never planning on having kids.

About me: 30 year old male. Veteran, planning on using the VA Home Loan. Make ~200K a year and work remotely. No debt except car debt. Currently renting, signed an agreement with my apartment where I can break my lease anytime if I buy a home. As said earlier, planning on not having kids. I don't drink alcohol either so I don't need to be close to bars, although I do enjoy walkability.

With these factors in mind, where would one suggest looking for a home? I understand that Plano has good resale value due to the school districts but may be boring. I also understand that property taxes may be higher in Dallas county and that condos don't hold their value as well as a single family home.

If you were in my circumstances, would you look to buy in DFW, or somewhere else entirely? I do believe that DFW has great potential and will continue to grow. I also like how it has 2 major airports, no income tax, and that I can get to anywhere in the country non-stop in 3 hours (good if I ever go back to a travel job). Thoughts?

[rabbit33]

That whole area over by Love Field is gentrifying pretty fast. That might be a good bet for the future. Another bet would be down along Samuell Blvd; some years away from gentrifying but plenty of modest nice-ish houses.

[TurtleCreek80]

Unless you’re trying to buy a brand new 6000sf home for $175k, I have no idea why you think you’re being priced out of Dallas?! You are in the absolute best position with remote jobs and not having to think about schools or budget for kids

I used a $400-500k MLS search and found TONS of awesome listings in Dallas proper. That puts your PITI around $2700/mo MAX which is pretty conservative for $200k income and no debt. Many of the listings are pending which just means you have to have patience and a realtor experienced in your target areas. But it doesn’t mean you’re priced out.

If you want a townhome or condo, try Oak Lawn (75219) or Knox Henderson / upper parts of uptown (75204, 75205). If you want a cool MCM house or cottage, check out North Oak Cliff (75208) or the neighborhoods east of White Rock (75218 / Old Lake Highlands, Lochwood, Little Forest Hills, etc neighborhoods). You might be able to find something in Ridgewood Park (75214, around Lovers & Abrams).

A littler further afar is Richardson which has lots of great neighborhoods in the $400k range. Richardson Heights is a good place to start - 75080.

If I were in your shoes I would probably zero in on 75218 to be near the lake or 75208 to be near Bishop Arts. Both are great options for DINK households.

[mirotek]

Priced out with a $200K salary? With that salary, you can live anywhere in the country you want.

[tmtex]

200K a year, what are you trying to buy ?

[Leonard123]

I'm not sure what you do for a living, but hardly anyone that age regardless of job title makes that much money even in this metro. You are likely in the top 1 percent or so of any age bracket. Even in IT, that salary is unheard of around here without significant experience and a management role.

I'm not sure where you're being priced out. Maybe an estate in the Park Cities.

[Leonard123]

Originally Posted by TurtleCreek80

I used a $400-500k MLS search and found TONS of awesome listings in Dallas proper. That puts your PITI around $2700/mo MAX which is pretty conservative for $200k income and no debt. Many of the listings are pending which just means you have to have patience and a realtor experienced in your target areas. But it doesn’t mean you’re priced out.

That would be a very conservative budget on less than half that salary.

[Wittgenstein's Ghost]

OP, why on earth would you choose to live in DFW if you make that kind of money and can work anywhere? Most people who live in DFW do so for one of three reasons:

1. They have family/friend ties.
2. Their job is in DFW.
3. The quality of schools/cost of living/income mix is attractive, particularly when coupled with a low to moderately low tax burden.

It doesn't sound like the first two apply to you, and if you don't have kids, the schools don't matter. Move somewhere with a great quality of life -- better weather, better urban vibes, beach/mountains, etc. For the life of me, I can't fathom why someone in your position would stay in DFW.

However, if I were in your position, and I was stuck on DFW, I'd check out the Kessler Park/North Oak Cliff/Bishop Arts area. For the love of god, don't pick Plano if schools are irrelevant. Plano is for families who want the suburban family life.

I'd pick something like one of these:
https://www.realtor.com/realestatean...8_M70532-37874
https://www.realtor.com/realestatean...8_M72483-07933


Full disclosure: I used to live in DFW but moved away because I could work anywhere. The only reason it was a tough decision was due to family ties.

_______
Edit to add: The idea that areas with good schools appreciate faster is probably overblown. The good schools are already priced in. If a place's schools get better, sure. But Plano is well-known as having great schools, so that's already reflected in its high prices.

[CoastieOnTheMove]

Originally Posted by TurtleCreek80

Unless you’re trying to buy a brand new 6000sf home for $175k, I have no idea why you think you’re being priced out of Dallas?! You are in the absolute best position with remote jobs and not having to think about schools or budget for kids

I used a $400-500k MLS search and found TONS of awesome listings in Dallas proper. That puts your PITI around $2700/mo MAX which is pretty conservative for $200k income and no debt. Many of the listings are pending which just means you have to have patience and a realtor experienced in your target areas. But it doesn’t mean you’re priced out.

If you want a townhome or condo, try Oak Lawn (75219) or Knox Henderson / upper parts of uptown (75204, 75205). If you want a cool MCM house or cottage, check out North Oak Cliff (75208) or the neighborhoods east of White Rock (75218 / Old Lake Highlands, Lochwood, Little Forest Hills, etc neighborhoods). You might be able to find something in Ridgewood Park (75214, around Lovers & Abrams).

A littler further afar is Richardson which has lots of great neighborhoods in the $400k range. Richardson Heights is a good place to start - 75080.

If I were in your shoes I would probably zero in on 75218 to be near the lake or 75208 to be near Bishop Arts. Both are great options for DINK households.

Thanks! I think it's partly because I grew up working class lol. My mom had an 8th grade education and my dad only a high school one, so seeing and knowing I'd be on the hook for a 2500-3000 payment a month is a little scary.

I suppose $2700/mo MAX would be okay. I maximize my contributions to my 401k and IRA first and foremost. I also am going to use the VA Home Loan for 0 down. Even still, closing costs can be high for a home. I definitely want to research utilities though too and property tax. I'm probably being over analytical on this but I've never bought a home before, so I'm thinking of mortgage, property tax, HOA, utilities, maintenance, etc. I definitely don't want to be house poor or forego the ability to maximize my contributions to my retirement accounts.

Thanks for your advice!!

[CoastieOnTheMove]

Originally Posted by Wittgenstein's Ghost

OP, why on earth would you choose to live in DFW if you make that kind of money and can work anywhere? Most people who live in DFW do so for one of three reasons:

1. They have family/friend ties.
2. Their job is in DFW.
3. The quality of schools/cost of living/income mix is attractive, particularly when coupled with a low to moderately low tax burden.

It doesn't sound like the first two apply to you, and if you don't have kids, the schools don't matter. Move somewhere with a great quality of life -- better weather, better urban vibes, beach/mountains, etc. For the life of me, I can't fathom why someone in your position would stay in DFW.

However, if I were in your position, and I was stuck on DFW, I'd check out the Kessler Park/North Oak Cliff/Bishop Arts area. For the love of god, don't pick Plano if schools are irrelevant. Plano is for families who want the suburban family life.

I'd pick something like one of these:
https://www.realtor.com/realestatean...8_M70532-37874
https://www.realtor.com/realestatean...8_M72483-07933


Full disclosure: I used to live in DFW but moved away because I could work anywhere. The only reason it was a tough decision was due to family ties.

_______
Edit to add: The idea that areas with good schools appreciate faster is probably overblown. The good schools are already priced in. If a place's schools get better, sure. But Plano is well-known as having great schools, so that's already reflected in its high prices.

Thanks for the reply! I moved here summer 2020 from NYC. Back then I was working in consulting at a 105K salary. I'd had so much work on the West Coast I'd fly coast to coast every week pre-pandemic. GF and I initially considered Austin but found Dallas to be better (more metropolitan like Manhattan) for us. Plus with the 2 airports and location I could get to anywhere in the country in less than 3 hours via plane nonstop.

I've since job hopped and now make around 200K in a remote role. I like that Dallas is a big city and Texas has no state income tax. I'm finally able to comfortable maximize my contributions to my 401k and IRA, yay! With the rest of my income I'm either saving it or throwing it into a brokerage account for more growth. I also think Dallas will likely continue to grow. Where would you suggest I look into?

I'm considering doing either a PT or EMBA with my GI Bill. At this point in my career I wouldn't want to go full time, I think I'd lose way too much with where I am now. I've considered a move to Austin, but at my income level it doesn't make sense to keep being a renter, it gets tiring moving. I also don't want to move back to NYC as I'd be on the hook for $17K in income tax/year with higher cost of living

Where did you end up going if you don't mind me asking? I'm more of a city person so can't see myself in a rural or suburban environment. I like NYC and SoCal but not enough to fork over a large percentage of my paycheck