Moving to Plano, Rent or buy an investment house first (Dallas: real estate market, foreclosed)

[Planoquestion]

Hello everyone,

We need your sincere inputs to decide which option is better.

We will move to Plano around August 15. 2 adults and 2 kids (5 and 3). My husband's company is at the intersection of 121 and Dallas North Toll way. I will work in Richardson or Dallas downtown.

We are thinking of buying a house around Skaggs or Wyatt elementary schools since I heard that they are the best school in that area. Would you please advise OTHER areas with great schools we can look into buying the house?

Now we are in the process of looking for a place to rent or buying a small investment property around Skaggs or Wyatt area.

The following investment properties in that area seem nice to me. We will buy in cash for a quick closing.

1.3072 Sawtooth Dr., Plano, TX, 0.2 miles to Skaggs and 0.5 miles to Rice. 3 bedrooms and 2 bath rooms. Asking for $192,000.
2. 8305 Spring Ridge Dr, 3 bed rooms 2 baths -2752 SF built in 1998 asking for $269k. Assume that we will get it with $230k
3. 8240 Spring Ridge Dr 4 bed rooms 2 baths -2314SF built in 1998 asking for $250k. Assume that we will get it with $210k.

If we buy an investment property first, we will wait for the good deal for our final home.

If we rent the town house, it seems that the rent will be $1,800 for 3 bed rooms, 2 baths and 2 garages. We plan to rent for 6 or 7 months. We are concerned that there will not be many choices.

I need your opinion regarding the general rent in that area and how quick to rent it out. If you were me, would you prefer renting or investing in a small property.

Thanks.

[Big G]

I'd suggest renting. Why? Because that way, you at least have a place to live.

Your planned purchase offers of 15-20% below listing price are unrealistic. If that's your definition of a "good deal", you will be waiting a LOOOONG time for that to happen in Russell Creek.

[Squirl]

Unless the property has structural problems, is outdated, or faces traffic you will need to pay top price. Many houses in that area are in bidding wars right now.

Rent a place until you get to know the area better.

[BigDGeek]

You'll be paying close to or even over asking price. You won't be getting deep discounts like you assume. Welcome to DFW.

[Planoquestion]

what would you prefer: Rent or invest in a small property first?

What other areas are good to buy as well?

Happy Friday.

[TurtleCreek80]

Originally Posted by Planoquestion

what would you prefer: Rent or invest in a small property first?

What other areas are good to buy as well?

Happy Friday.

I would rent first. You need to learn the real estate market here before you buy.

FYI, the first listing you posted is already under contract after less than 1 week on the market, which likely means they got at or just above the $192k asking price. For the other homes you posted, comps support the asking prices (close to $100/sf). I don't know how you decided a competitive offer would be $85/sf-ish.... Being an all cash offer in the DFW market doesn't mean you get a discount; it means you have a shot at being the winning bid since you can close quickly and without contingencies. Me thinks you need to find a good local realtor....

Richardson is another great suburb with excellent schools and a good central location. Look for homes zoned to Pearce or Richardson High Schools. Expect a competitive real estate market there, too.

[BeenThereDunThat]

In a competitive real estate market, I agree that most homes will get above the asking price in a bid situation.
Did that on a house years ago and while I could've maybe gone lower, I didn't want a few thousand to keep me from getting a foreclosed house in a good area at or below market.

Good luck