Single-family rental properties are profitable in Dallas. You’ll find that with this type of investment, you’re able to attract long-term tenants and earn higher rental prices. They’re also good at appreciating quickly. When you focus on maintaining your rental home and keeping it occupied, it will be worth a lot more than it is now in just a few years.
There’s money to be made in single-family investing, especially in the Dallas market and surrounding areas.
However, the market is hot right now. You’re facing a lot of competition, and you need to be prepared. Here are some things to keep in mind before investing in a Dallas single-family rental property.
Understand the Dallas Sales Market
You’re going to encounter a lot of competition when you decide to invest. This is a seller’s market, and there are buyers just like you knocking themselves out to acquire as much real estate as possible. The single-family home market is especially hot. Investors are making cash offers and many of them are waiving some of the standard parts of the process, such as inspections.
Be prepared, but don’t rush. You want to keep your investment goals close and make smart decisions. Working with a real estate agent who knows the market well can help. You need a good negotiator who has a strong network of local professionals.
Understand the Dallas Rental Market
Once you have decided you won’t be scared away by the intensity of the sales market, you’ll need to give some attention to the rental market. These often operate in different ways. Dallas is a diverse and growing market. It’s attracting a lot of tenants, which means you’ll have a great pool of residents looking for well-maintained single-family homes to rent.
Getting an idea of the market strengths and weaknesses will help you price your property competitively when you’re ready to rent it out. It will also help you market strategically and plan for upgrades and updates that will appeal to your best tenants.
Prepare for Unexpected Costs
A lot of investors understand the fixed costs of owning rental property. With a single-family home, you’ll have general maintenance and landscaping. You’ll have to pay for pest control. Most investors can easily budget for the mortgage, taxes, and insurance.
However, you’re going to need to prepare for some of the unpredictable costs, such as vacancy and emergency maintenance repairs. Set aside a maintenance reserve for small repairs and major projects.
Don’t forget to budget for professional costs as well. You’ll need a good CPA or tax attorney as well as an insurance agent, vendors, brokers, and property managers.
You Need an Exceptional Dallas Property Manager
Work with a professional Dallas property management company before you buy a single-family investment home. You need an expert with a real estate mindset who knows the local market and understands the property management industry. Find a company that can accurately price the home, market it, and screen for highly qualified tenants.
A property manager can make a big difference in your investment experience. If you’d like to know more about how we can help you find and rent out a profitable single-family home in Dallas, contact us at OmniKey Realty.