Multi-family homes are a great investment for many reasons all across the country. And no one who has paid any attention to the real estate market lately can have failed to notice that Dallas and other urban Texas areas are the hottest place to be for real estate investing. What happens when you combine these two investing cash cows? Here are our top 10 reasons to consider investing in multi-family properties in Dallas.
1. Easier Management
When all of your units are clustered in a single property, it’s far easier for you or your manager to take care of the property and tenants. Everything from collecting rent to dealing with paperwork is far more simple when you have multiple investments in one streamlined work flow.
2. Dallas’ Thriving Population
The Dallas area is booming. Not only is it the 6th largest metro area in America, it also ranks in the top 15 metro areas worldwide. In 2014, the population was well over one million and growing, and the rate of growth over the past 15 years has exceeded seven percent.
3. Multi-family Properties Bring Tax Breaks
The government appreciates it when investors provide housing. It keeps the city operating, and it keeps new workers and consumers coming into the city. Investors get tax incentives for providing this service. In some cases, depending on the depreciation of the property, investors could pay as little as no property tax at all.
4. Fortune 500 Companies Go to Dallas
There are over 20 Fortune 500 companies headquartered in Dallas, which not only means that massive populations of employees and their families live in the city, but also that young professionals seeking great jobs are coming to the city as well.
5. Multi-family Properties Hold Value
A properly rehabbed multi-family property will attract a steady stream of income for decades, and that’s a very attractive fact to other investors. Thanks to the assurance of long-term income, it’s possible to sell multi-family properties for top dollar even years after you initially invested.
6. Dallas is a College Town
Over a dozen colleges and prestigious universities call Dallas home, and that means that thousands of students regularly need housing during the school year. Not only that, but the employees and faculty of each university need housing as well. Over all of these colleges, Dallas hosts more than 300,000 students alone each year.
7. Multi-family Properties Appreciate More Readily
Forcing appreciation can be difficult with a single-family home, where you often are stuck with what you’ve got. But a multi-family property can be improved in many ways. Add on-site laundry, add a play ground, make a communal hang out space, or a gym. Any of these could force appreciation.
8. Forbes Put Dallas on the Map
Forbes has frequently featured Dallas as the top city for young professionals, and the third fastest growing city in the country.
9. Dallas Has the Fastest Job Growth Rate
Additionally, jobs are growing at a miraculous rate compared to the rest of the country. This leads to higher demand for fast and affordable housing.
10. Texas Attracts Business Owners
Because Texas has fewer business regulations and tax laws, it’s a haven for business owners. They bring employees, who need housing, and affordable multi-family properties are the best way to capitalize on this trend.