Rental properties are a huge opportunity for investors who want to put their money to work, enjoy cash flow possibilities, and get a nice return upon resale. And the Dallas-Fort Worth area is one of the best markets in the country for real estate investing.
But the Dallas-Fort Worth area is also made up of countless neighborhoods, towns, cities and suburbs. What are the best areas for real estate investing?
If you’re considering real estate investment, of if you want to expand your existing portfolio, here is a look at the 8 best places to search for a property.
Few cities in the nation are thriving like Dallas. The Big D is home to well-established companies, and it’s also become a popular spot for startups.
On the real estate front, Dallas County has one of the lowest homeownership rates in the country, which means there are lots of prospective tenants out here. But where specifically should you look for a rental property in Dallas?
Many of the best areas to buy rental properties are clustered around White Rock Lake, like Munger Place, Lochwood and Lake Highlands. You can still find value in the Oak Lawn and Uptown areas. And Downtown Dallas remains one of the more affordable city centers among the largest cities in the country.
Yes, you’ll likely pay more for a property in Dallas than in the other cities on this list. But buying a property in Dallas may provide the greatest potential for long-term returns.
Plano is no small suburb. Almost 300,000 people live here, and it alone is the ninth-largest city in Texas (just behind Corpus Christi and ahead of Laredo). Plano is a great place for real estate investment, because you can find homes available at affordable prices — and there’s a huge base of prospective renters who move to Plano for work opportunities, for good schools or for affordability.
Some of the biggest employers in the area are located along the Dallas North Tollway on the west side, though there are plenty of quality properties available along 75 and further on Plano’s east side.
Frisco is booming like few other cities in America. Located just north of Plano, this bustling center of activity is home to an ever-growing number of high-quality schools, as well as plenty to do — an MLS team plays in Frisco, for example, and the Dallas Cowboys practice here.
Among renters, Frisco is popular for many of the same reasons as Plano. Housing is relatively affordable, schools are of high quality, and there are plenty of employment opportunities in the Frisco area (or close by).
McKinney is yet another booming suburb on Dallas’ north side. Located just a little bit farther out than Plano and Frisco, McKinney has more of a small-town feel with its downtown built around a charming square.
Again, McKinney is most popular because of its affordability and quality schools. The commute might be a little longer for professionals who choose to rent in McKinney, but the many benefits of this suburb quickly overwhelm the drawback of a long drive.
In McKinney, you can find older homes closer to downtown as well as newer homes in master-planned communities farther from the city center. Compared to prices in Dallas, though, you’ll be pleased by the affordability.
Richardson has long been one of the best-kept secrets in DFW real estate. The city itself is so close to Dallas that you barely notice where one ends and the other begins. Richardson may not have education to match the quality standard of further-flung suburbs, but this is a place where any renter would feel comfortable sending kids to public schools.
Perhaps the best part about Richardson is its location. You can quickly get on the President George Bush Turnpike, 75, 635 or the Dallas North Tollway from almost anywhere in town. That means short commutes and a short distance to entertainment and other fun things to do.
Allen sits just between Plano and McKinney along 75. It’s best known for its powerhouse high school football team (and the enormous stadium it plays in). But Allen is more than just a football town that people pass through on their way from one place to another.
Allen is home to some of the best shopping, dining and entertainment options among Dallas-area suburbs. The schools are good for education, in addition to football. And the housing is affordable, too. These things add up to a winning combination for real estate investors.
If you’re looking for an entry-level investment opportunity, check out Garland. In Garland you can find a wealth of low-cost housing options to choose from — most priced in the 200s.
Of course, Garland is affordable because its schools are middling and it’s located on the far eastern side of the DFW area. Still, those are the same reasons why Garland is so affordable. If you want a low monthly payment and commiserate cash flow opportunities, search properties in this area.
.Mesquite and Garland could be twins. Located adjacent to each other on the east side of Dallas, each offers affordable housing but with lower quality public schools and a less attractive location.
Still, new real estate investors need to start somewhere, and Mesquite should be at the top of your list if you’re looking to jump into the rental property game in the Dallas-Fort Worth area.
