Rattlers-1These Dallas properties are by far the most popular of all the markets right now. People are eating them up! Super cool market. This proeperty is fully turnkey, meaning completely rehabbed with tenants and property management in place. The turnkey supplier has an excellent reputation (ask Jay Dao from the Testimonials!)

Dallas is a really interesting market right now. It’s one of the few really popular cities that is so hot for people moving there, houses are selling above asking price (even non-investment properties), and yet there are still profitable deals available! You won’t see as high of cap rates as you will in a lot of other cities, but the quality of the market and the properties far outdoes the numbers.

 

Location: Dallas, TX. Built In: 2000

Purchase price: $145,000 (not a foreclosure, normal sale)

Property info: 3 bedroom, 2 bathroom, 1,698 square feet

Income

Monthly rent collected: $1,450

Rattlers-2Expenses

Monthly expenses

Property taxes: $279

Insurance: $50

Property management fees: $116.00

Monthly expenses (conservatively estimated)

Vacancy (7%): $102

Repairs (5%): $73

Total Monthly Expenses- $619

Net Income = Income – Expenses =  $831

 

 

Advanced Numbers

Cap Rate =

annual net income (non-inclusive of mortgage payment) / purchase price = 6.88%

Cash-on-cash return =

Depends on your leveraging.

 

Are you thinking the cap rate is lower than what you are interested in? Check out one of Ali’s articles from BiggerPockets that hits this exact topic!

The 2% Rule: Fact, Fiction, or Feasible?

Comments
  • Gary
    Reply

    Wouldn’t the mortgage payment come to $771 leaving you with about 100 dollars or so in cash flow? Doesn’t seem like a good deal.

    • Ali
      Reply

      Gary, yes, that’s the ballpark. Dallas of all the markets has the lowest cash flow for sure. However, it’s such a crazy growth market and everything is such high quality, that is the trade-off. It depends on what your goals are for sure as to whether you want to invest in Dallas or not. If cash flow is your primary concern, there are some other markets better for that. A lot of it is long-term quality of investment though, and Dallas is great for that. Plus where the market is today, $100-200/door/month isn’t all that crazy.

  • EL @ Moneywatch101
    Reply

    This would be a great deal, if the buyer was putting down at least 30% or all cash. Whats your take if the investor lives in a different state?

    • Ali
      Reply

      I only buy out-of-state from where I live, and I think it can work great! Why only 30% or all cash?

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