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Tips to Buy a Rental Property in Dallas for Investment (2019 Update)

Investors often want to find ways that they can diversify their investments. One of the best methods of diversification is to start investing in real estate. Buying rental property in Dallas for your investment can be a great choice, but those who are just starting out in this field of investing need to know what they should be looking for prior to investing. The following tips will help to make sure you are making the right choice when you are buying a rental property for sale in Dallas.

The Right Price

One of the most important factors to consider when you buy rental property in Dallas is the price you are going to be paying for the property compared with how much you could make in profit from the purchase. Therefore, you need to make sure you are looking for properties that are priced appropriately for their neighborhood and their size and features. You also need to check the price of current rentals in the area for similar homes to see if it would be profitable for you to make the purchase.

A Great Location

The real estate saying of “location, location, location” is very true. One of the most important tips you will want to keep in mind when you are buying a rental property in Dallas for investment is the quality of the neighborhood. You should always look for properties that are in a good neighborhood that is in demand and that has a low level of vacancies. This is a good sign that there are always people who want to rent in the area, which means you will likely spend less time with an empty rental property.

Consider the Parking Situation

One of the factors that many investors forget when they are buying a piece of property is the parking available for the property. If there is a driveway and plenty of parking on the street, or if there are assigned parking spaces, it is often easier to rent to people. Those properties that do not have parking spaces, or that have inconvenient parking spots are not in demand.

Be Sure You Can Afford the Property

When it comes to the down payment and the monthly mortgage for the investment property, you need to make sure that you can truly afford it, even if you go a month or several months without any tenants in the property. Be sure to go over the numbers carefully to make sure the investment will not get you into financial trouble.

Beware of the “Great Deals”

There are often properties for sale that might seem like great deals when you first look at them. In some cases, you might get lucky and find the ideal Dallas rental property. Other times, though, the great deal you are getting is because there is a problem with the home. It could be in a bad neighborhood, which will make it harder to rent, for example. It could also be a home that needs a lot of care and upgrading before it can be rented. If the deal looks too good to be true, it might be worth passing.

Consider a Property Management Company

If you are living in the Dallas area, you might be able to handle the landlord duties of a single property on your own. However, you might not want to go through the hassle, and you will find that it’s much easier to have a property management company take care of things for you. This is certainly true for those who have multiple properties or who are not located in the Dallas area.

With the preceding tips, you can approach buying a rental property with more confidence. You will know what you should be looking for and what you should be avoiding.

Resources: https://www.consumerismcommentary.com/10-tips-buying-rental-property/
https://www.investopedia.com/articles/investing/090815/buying-your-first-investment-property-top-10-tips.asp?lgl=myfinance-layout-no-ads<>

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The Pros and Cons of Investing in Commercial Real Estate in Dallas (2019 Update)

Property of all types have the potential to be a good investment opportunity. For those who are seeking the most financial reward as possible investing in commercial real estate tends to be the best option. However, it is important to keep in mind that there are also often more risks associated with this type of investment when compared with residential options. If you want to buy a rental property in Dallas for commercial use, you should make sure you understand both the benefits and the risks to this type of investing.

What Is a Commercial Property?

The term commercial property is an umbrella term, under which you will find many different types of buildings in which you can invest. For example, some of the most common types of commercial property includes retail buildings, office buildings, warehouses, and industrial buildings.

However, the term encompasses much more than that. It will also include apartment buildings, as well as mixed use buildings that have office or retail space, along with an apartment or condominium. Medical real estate would fall into this category, too.

One of the important things that you will need to remember when you are investing in commercial real estate in Dallas is that different types of commercial properties will have different management needs. A medical facility, for example, will likely have different needs from an apartment complex or a retail store. To make things easier on yourself, you will want to consider using a property management company that has experience with the type of commercial property you are going to buy.

What Are the Benefits?

First, consider some of the benefits that can come from investing in a commercial property. Naturally, one of the first things that will come to mind is the potential for income. When compared with residential properties, you will find that the annual return from the purchase tends to be around 6% to 12% with the commercial properties compared with about 1% to 4% with residential properties. Of course, a range of factors will affect the profit, such as the location.

Another one of the benefits of investing in commercial property that is not often mentioned is the fact that the tenants tend to do a good job of keeping up the property. They are likely running some kind of business from that property, and they need to keep it in good condition to keep their own customers and clients happy.

The hours of operation for most commercial properties are going to be very similar to the hours that you work. They go home at the end of the day, which means you are not as likely to get a call in the middle of the night because there is a problem at the property. In addition, most investors will hire property management companies to handle problems if they were to occur.

Investors will also find that there is far more objectivity in the price with commercial real estate. When buying residential real estate in Dallas, or any area for that matter, there is always the danger of having a seller who is emotionally attached to the property. They keep their prices high, and it is difficult to talk them down. This is not generally a problem with commercial real estate.

What Are the Risks?

Of course, there are also risks with investing in commercial real estate in Dallas. Unless you are hiring a property management company, you will find that there tends to be more of a time investment when it comes to dealing with the leases and the management of these types of properties. In addition, you will need to have professionals on hand to deal with maintenance issues. Commercial real estate is also a larger initial investment.

Despite the potential risks, most investors agree that there is a lot to be gained from commercial investing. It could be something you want to consider.

Resources: https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html

https://www.colecapital.com/why-commercial-real-estate