Skip to main content

Hottest Dallas Suburbs for Owning Rental Homes? [Interactive Map]


Want to build your real estate empire?  Start by pinpointing which areas to target!  

Click on each city in this interactive map to learn more.



So how did we come up with this info?  We took a look at the Average Cost of Each Home versus Average Rental Rate to come up with a yearly return percentage.  This is done by taking the yearly average rental rate total and dividing it by the average cost of a home in that city.  To simplify the data, we chose to focus on 3 bedroom, 2 bath starter homes using sales/rental data from July - Sept, 2019.

When these two performance metrics are put up against each other, you can use this info to find out which cities are best for building your rental real estate empire.  Use these tips to take the next step...


Tip #1 - Work Smarter, Not Harder.
Seasoned investors know that time wasted is opportunity lost, so gain efficiency in your property search by using this data as a spotlight to focus your energy.  If you only have a few hours each week to search for the right home, spend that time with your singular purpose in mind... finding winners.


Tip #2 - Get Picky.
Knowing what you want in a rental property starts with your highly refined investment goals.  If you plan on managing the property yourself, then narrow your search to properties within 10 miles of your home.  Maybe your plan involves rehabbing single-family homes into duplexes or buying homes with land that you can subdivide and sell for a profit... What are your goals?


Tip #3 - Look for The Second Source of Profit.
Year over year growth in value is how many of us gathered so much equity in our personal homes.  We bought them for 200k, then 6 years later they were worth 300k.  That's appreciation, the kind that turns into a big check if you ever decide to sell your home.  Another great use of this data is finding areas that are poised for steady growth in value.  The recipe for success that I mentioned earlier isn't just used for finding good rentals for immediate use, it also points us towards finding which cities will grow in value as they attract more and more home buyers.

BONUS - Which Areas are Poised for a Big Value Jump?
A second use for this data is that it also gives us an inside look at the behaviors of renters vs. buyers (rental rate vs. housing cost).  If the average home value in a city is relatively low but the rental rate is high (and rising steadily), this is our recipe for success.  Renters are less picky than home buyers.  One reason for this is because they may see their next home as a temporary housing solution.   Compared to home buyers, they are less worried about their house being perfect and more concerned with meeting immediate needs, such as drive time and school ratings.  Put yourself in the average renter's shoes to see that property value growth happens in stages.  Renters first, then home buyers.   Use indicators such as renter behavior data and rising rental rates as a precursor to future home value gains in each city.  



Our work together is to make the data accessible and approachable, to see the human behavior behind the charts and percentages.  Learn more about our investor services here and you will be able to focus your search to find the right property for your needs now... and the future.



Timothy Henley
Broker & Texas Realtor 
Lic # 0572885






Comments

Popular posts from this blog

Look at How Far We've Come! COVID Can't Keep US Down!

From the beginning of the "COVID impact" on our local real estate market, we have been tracking the health of our home values by monitoring "under contract" data to get real-time indicators.  Since SOLD data is already 30+ days OLD by the time it's published, we use this info to determine what's happening with our market NOW.   Legend:  BLUE is the 1st 10 day timeframe. ORANGE is the midway 10 day timeframe. GRAY is the latest 10 day timeframe. Collin County - April 2020 to NOW It's almost like any other summer buying season in Collin county... Healthy numbers from 200k to 500k.  We are on an upward trajectory for homes being put under contract, with the higher-end ranges making a strong comeback from where we started.  There are plenty of buyers hunting for a great home, so put your house on the market with confidence.  More info available upon request. Learn more about Selling with NO SHOWINGS Right Here. Denton County - April 2020 to NOW BELOW 300k, D

Could the Worst be Over? The Numbers Are Loooookin' Good!

We are tracking the number of homes that are being put “under contract” to get some early indicators as to how buyers are behaving in real-time.   Want to take the pulse of our local housing market?   Look no further than right here! [Quick Data Explanation] The charts below are going to have two bars , one for homes being put “under contract” this year AND one to compare against for last year.   To read this right, you have to know that the average home is sold about 30 days after it’s put “under contract”.   So last year’s sold data was put into date ranges based on this corresponding timeframe to give us an active comparison. Collin County The orange bar  represents how many homes went under contract in 2019 (and eventually sold 30 days later).   The blue bar  shows the number of homes going under contract this year. The hottest segment of the market SHOULD BE the 200k to 300k range, but it’s the only price ra nge that didn’t see an increase.  My

One-Time Close Construction Loans with Super Small Down Payments!

Have you ever DREAMED of building a Custom Home but assumed it would require a large down payment? A Home Designed to Fit You & Your Budget...  Build Your Dream Home NOW! Finally regular buyers can get a truly custom home because of low down payment, one-time close construction loans!  Find that perfect piece of land in the perfect location, design your Custom Perfect home and then wrap it all into one easy loan product! For far too long, buyers with only 3-5% to put down have had to settle for pre-existing floor plans or homes.  Why compromise on the place where you spend so much of your life?  NOW you can design your new home exactly the way you want it... YOUR Style & Design with all the floor plan, layout, features and amenities that fit How You Do Life ! Your Own Custom Perfect Spaces! What will you put in YOUR Custom Home? Master retreats, kitchens straight out of Pinterest or HGTV! Guest houses for an aging parent . Separate spaces for