It’s no secret that Dallas has one of the very best investment rental markets in the US today. With so many people moving to the Dallas-Fort Worth area, rentals are in high demand, and investors are enjoying great ROIs with their investment property purchases. But which areas are the best places to look for those properties?
While downtown Dallas has a lucrative market, it is not the only rental market around, and some Dallas suburbs are showing major growth and opportunities for real estate investors.
Grapevine is an excellent location for investors looking to purchase mid- to high-end rental properties. Currently, the mean listing in this area is just under $370,000, and the mean rate for monthly rent is $2300. With rental rates increasing at a steady rate each year, purchasing properties now gives you a great opportunity to see a lot of positive cash flow.
Grapevine is especially attractive to tenants moving to the Dallas area for work, as it is conveniently located to the northwest of Dallas and is nestled on the shores of Grapevine Lake. The suburb offers numerous attractions, amenities, and culture, including museums, nightlife, and more, making it a great place for individuals, couples, and families to live.
Plano offers another great opportunity for real estate investors, with average market values at just over $500,000 and average rental rates at nearly $2000 per month. While these numbers may not be quite as attractive as the ones you’ll find in Grapevine, Plano is definitely a suburb to consider, as rental rates and property values are likely to increase in the next few years.
Within an easy commute of DFW International Airport, downtown Dallas, and Dallas Love Field, Plano is in a prime location. Not only that, but Plano is also served by the DART light rail line, making it easy to get around town, even if you don’t have a car or you don’t want to deal with traffic. These details make Plano a serious contender for tenants looking to move to the Dallas area, but they’re not the only attractions by far.
Plano is home to numerous top schools, including Haun and Andrews Elementary Schools, CM Rice Middle School, and Jasper High School, all of which are highly ranked. And, whether tenants have kids or not, there are numerous things to see and do in Plano, making it a great place to live.
Last but certainly not least, Frisco is a highly popular suburb for families. In addition to great schools, this area boasts numerous art exhibits, spas, and other amenities, luxuries, and features. The property values are in line with Plano, at just under $513,000 on average, but rental rates are a bit more profitable at $2100 per month.
In addition to having slightly better rental rates than Plano, Frisco also typically has more houses on the market for sale than Plano, making it easier for investors to find properties to purchase. Also, the 42 schools in Frisco are some of the highest ranked in the state, and the suburb offers a number of activities and events for kids throughout the year.
Frisco has recently undergone significant growth, but the boom seems to be just beginning. In the next few months and years, we can expect to see property values increase and rental rates soar, as well. This lively, family-oriented suburb is definitely a place to consider when buying rental properties now and in 2017.
Each of these three Dallas suburbs has its own unique style and feel, and they’re each very attractive to high quality tenants who are moving to the Dallas area to work for large corporations. In addition to being set to become the next investment property hotspots in the Dallas area, these suburbs command impressive rental rates, and you can expect to see both rates and property values increase steadily over the coming years.