Real Estate Investment Company Dallas

How to Identify Good Investment Opportunities in Dallas?

With a growing real estate market, the Dallas-Fort Worth area is ripe with investment opportunities. From foreclosure sales and flip properties to turnkey rental properties, you can’t seem to throw a rock in north Texas without hitting a chance to invest your capital in real estate. However, not every deal is a good one, and not every deal fits every investor, either. So, how can you identify the best Dallas investment opportunities for you and your goals?

Location, Location, Location

First, whether you’re perusing the MLS or someone in your real estate investment club has clued you in to what they call a great investment opportunity, you have to find out where it is. With nothing more than the property’s street address, you can gather everything you need to know about the neighborhood and surrounding area.

Through the tax assessor’s office and public records, you can find out about how many houses in the area are vacant and whether the neighborhood is growing or shrinking. With a quick drive around the area, you can find out if it has easy access to amenities like public parks, grocery stores, schools, and other attractive elements.

Whether you intend to sell the property quickly or hold onto it as a rental, you should know how much rental rates are in the area and how much comparable properties are selling for. You should also find out the average time that a property stays on the market there, too. Finding out that prices are low, people are moving out, and houses stay on the market for months should be enough to let you move on to your next investment and never look back.

Condition of the Property

Next, if at all possible, you’ll want to take a look at the condition of the property. With foreclosures, you will likely not be allowed inside before auction. However, with short sales and other distressed property sales, you can often do a walk-through before you make an offer. At this point, take the opportunity to have a professional come with you to inspect the property. After a full inspection, you should have a good idea of how much the property will need in repairs and renovations.

The property may still be a good deal, even if it is in need of major repairs. However, without knowing the condition of the house, you could easily overpay for it and turn a great opportunity into a terrible deal in very little time.

Understand How The Property Fits With Your Investing Plan

Finally, as you look around Dallas for investment opportunities, keep your investment plans in mind. Purchasing a unit or shares in a new construction apartment building can be a great investment move if you plan on holding onto the property as a rental, gathering passive income, and waiting for it to appreciate. However, it’s not going to gain you much (if any) capital if you try to turn around and flip it in a few weeks or months.

Foreclosure Real Estate Investing DallasBy the same token, a foreclosure property in need of a number of repairs may not give you enough income in rental fees to justify the expenses you put into renovating it. However, those renovations could bring that property back up to market value and create a great opportunity for a short-term investment.

Also, keep in mind how comfortable you are with the risk level on any investment. As a rule, holding properties and renting them to tenants is a much lower risk investment; fixing and flipping properties as quickly as possible is a much higher risk investment. Both have their advantages and disadvantages. Flipping properties can gain you a lot of income very quickly, but comes with more risk and more work. Holding properties, hiring a property management company, and renting them out will gain you less cash flow and a slower rate of return, but you will also have a much lower risk with each of your investments.