Posted on 10/25/2017 10:20:09 AM PDT by 2ndDivisionVet
From American Real Estate Investments: Business Insider ranked Dallas as the best place to buy a rental property. In cooperation with HomeUnion, Business Insider examined everything from the projected positive cash flow to the local economies to a detailed analysis of the local real estate market. The conclusion? Dallas is number one.
Investing in a rental property is distinctly different than owning a home or doing a fix and flip. Rental properties are a long-term investment. They need specific market conditions that minimize the risk of vacancy and maximize cash flow and appreciation.
Business Insider and HomeUnion found that the Dallas rental market offered a 5.6 percent return on investment; somewhat less than the stock market average return but considerably less volatile. They based their results on the median home price and median mortgage payment for a 30-year fixed rate mortgage, with a 20 percent down payment and 5 percent interest rate:
Dallas Figures:
•Median investment home price: $199,300
•Mortgage payment: $856
•Median rent: $1,630
While a market like Miami might bring a higher annual return, Dallas has stronger economic growth and real estate appreciation, making it the top place to buy a rental property. The metro area boasts a 6.2 percent three-year population growth and 3.9 percent job gains over the last year. The absence of personal and corporate income taxes makes Texas a business-friendly state for corporations and employees alike.
In addition to a 9 percent average annual growth in all single-family home prices, the Dallas real estate market is also one of the fastest growing for pre-owned homes. Pre-owned home prices are up as much as 24 percent in many areas as renters and buyers flock to the business-friendly state from other less appealing markets. With rumors of Amazon considering DFW as the location for their next corporate headquarters, this could be just the beginning of growth in Dallas.
My wife has friends that sold their home in north Dallas a few months ago. They received five full price offers within hours of the listing. Four offers were from Chinese nationals as rental investments. A shame what has happened to that area at the hands of China.
People leaving Kalifornia are mostly in the mix.
It is probably a national issue; here in NJ it would be an Indian or Hispanic buying it. Americans are too squeezed to buy houses or have families that would make a house necessary. They live in someone else’s property, share rides in someone else’s Uber, and pay taxes for other peoples’ children.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.