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The Best Real Estate Investment Properties in Dallas TX

When it comes to investing your cash in property, there a wide range of options available. Some real estate investment properties are fix-and-flip, wholesaling, buying to rent, or commercial real estate. In most cases, the best type of real estate investment depends on the needs of the investor. Also, each type of real estate property has its own pros and cons.

In my previous blog, I helped you know how to avoid mistakes when it comes to the investment property market.

In this article, you will find how to know the best type of Dallas property to invest in.

Real Estate Investment Goals

First, it is important to know your ultimate goals when it comes to your investment. There are basically 3 types of real estate investments:

Selling. This is where you buy a home at a marked-down value and then sell it for a profit.

Long-term rentals. These are good for long-term investments and are suitable for commercial properties or family homes.

Short-term rentals. With these, think AirBnB or similar holiday let accommodations. These have a higher return on investment (ROI) but take more time to manage.

The Best Investment Properties in Dallas

So, if you are looking to make it big in the Dallas real estate market, what kind of properties should you be thinking of?

The following list of property types takes into consideration either selling for a profit or renting the property.

Single Family Homes

Single-family homes are usually located in the Dallas suburbs like Frisco, University Park, Addison, or Garland. As their name suggests, these dwellings are for one family to live in and they are usually detached houses with a front and back yard. From all the types of investment properties in Dallas, single-family homes are the most common.

Pros of single-family homes.

Some of the reasons to invest in single-family homes include the following:

They are in demand and usually sell or rent well despite downturns in the housing market.

Easy to invest in because they are generally affordable and it's easy to get financing.

Cons of single-family homes.

The downside of investing in these types of properties is that they can become a liability if you can’t sell or rent them.

Multi-Family Homes

Many investors start off by investing in multifamily homes. These properties contain at least 2 units where families can live in. Because you get 2-4 dwellings in one property, some of the overheads and outgoings are cheaper than a single-family home. This means that ROI can be much greater than a single-family unit.

However, on the downside, they usually require more investment as they are more expensive to buy and financing can be more difficult.

Condominiums

Investing in condos is usually for seasoned investors who already have a number of single-family homes in their portfolio. From all the types of investment properties in Dallas, condos offer the greatest reward in terms of ROI.

One of the risks with condos is that they require more upkeep and management. For this, most investors hire a property manager.

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Mistakes to Avoid When Investing in Real Estate

There are huge profits to be made by investing in real estate. Buying homes to rent, flipping properties, or wholesaling can lead to healthy returns on investments. But just like with any investment market, investing in real estate has to be done wisely.

If you want to ensure a good return on your investment in real estate investments, what are the most common mistakes you have to avoid?

In this article, I am going to share with you my secrets on how to make money in real estate. You will learn about some mistakes I’ve learned from and some that have caused others to fail.

1. Having no long-term strategy

The most common mistake that some rookie investors make is that they don’t have a strategy. Very often, They first of all look for real estate and then try to fit their strategy around that. For real estate investors, that most important factor in any deal is not the property but a highly motivated buyer.

2. Planning to get rich quick

Too many people start out investing in real estate thinking that it is a kind of ‘get-rich-quick’ scheme. 

Of course, the number of reality TV programs and infomercials just add fuel to the fire. As with any type of solid investment, it takes time and perseverance to make money. That is not to say that you can’t make a good profit on your first deal. It means that you should be planning for the long-term, not the short-term.

3. Trying to go it alone

One of the most common mistakes that rookie investors make is not having the right people around them. The key to real estate investment success is networking with the right professionals. Who are the ones you need close by? Certainly, you need a good appraiser, home inspector, and trustworthy attorney.

If you are flipping houses, then you also need to have a team of trusted professional contractors to rely on. After all, there is only so much you can do on your own.

4. Not doing proper groundwork

According to the TV shows, all you need to do is buy a distressed property, renovate it, and sell it for a profit. However, they never show all the work involved in choosing the right investment property that can make a profit. In many cases, there is a fine line between making a profit and making a loss. Also, buying a property for a cheap price doesn’t guarantee any kind of profit.

5. Moving too quickly

One of the challenges with real estate investing is doing due diligence on properties. Very often, the requires quick decisions when it comes to bidding on a foreclosure or agreeing to purchase a property. However, not having knowledge of market trends and closing fees can mean you lose money on the deal.

6. Not calculating cash flow

Another problem that rookie real estate investors face is not getting their cashflow calculations right. A lot of time can pass between buying a property and selling it. During that time, the investor doesn’t just have to finance the renovations, they also have to live and provide for their family. So, it is essential to get cashflow calculations spot on to make sure that your new real estate investment will be a success.

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How to Buy Abandoned Houses for Sale in Dallas

Buying abandoned houses in Dallas is a great investment opportunity for shrewd investors. Very often, you can get an abandoned property for well under its real value. With the right renovations and marketing, you can usually sell the house for a great profit.

More than often, houses become abandoned because the owner fell into financial troubles. Some homeowners facing foreclosure need to sell their home fast and may not have found a suitable buyer. Or, someone could have inherited a home and doesn’t have the time or money to get it into a sale-able condition.

However, it may not always be obvious that a home is abandoned and for sale. Or, it may be difficult to track down the homeowner.

So, if you are looking for fantastic investment opportunities in Dallas, how can you find an abandoned house for sale?

How to Find Abandoned Real Estate

Most homes that are vacant and abandoned are in the process of foreclosure. Very often, foreclosing a property can take many years. In this time, the property generally falls into a state of disrepair.

To locate where abandoned homes in Dallas are for sale, your first step should be to check out the classifieds. Some keywords to look for are ones such as “must sell fast,” “immediate possession of property,” or “under appraisal.”

Another way to find the perfect investment opportunity by buying an abandoned home is to visit your local county clerk’s office. There are records on property ownership where you can get public access to information such as liens, appraised value, or tax problems on a property.

You could also drive around some neighborhoods to look for tell-tale signs of an abandoned house. These are overgrown grass and weeds, chipped paint, broken or boarded windows, or signs of structural damage.

Buying an Abandoned Home in Dallas

Buying an abandoned property is much the same as buying any other home. In some cases, if you can track down the homeowner, you could offer to buy the home for cash. Some homeowners who are more than willing to accept a below-value offer just to get rid of the run-down property.

If the property is being sold through auction, then you will need to get pre-approved or make sure you have enough cash to buy the property for sale.

If possible, you need to do a thorough inspection of the property. Very often, abandoned properties have a number of serious issues that need to be sorted. If you have structural issues to fix or the roof needs changing, you can run up serious repair bills on the home.

So, try to make a good estimate of the price of the home plus taxes and repairs. Then you need to study local market trends to estimate what the After Repair Value (ARV) will be. This will give you some kind of indication if you can make a profit on the property. Remember, you need to make enough to make all the time and effort of buying an abandoned property in Dallas worthwhile.