These 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
Monthly rent collected: $1,450
Property taxes: $279
Property management fees: $116.00
Monthly expenses (conservatively estimated)
Vacancy (7%): $102
Repairs (5%): $73
Total Monthly Expenses- $619
Net Income = Income – Expenses = $831
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!