Investors search for opportunities that minimize the risk while maximizing the earning potential. There are so many new options out there that some have forgotten that owning rental property is still an excellent investment here in the Dallas-Fort Worth area. Reasons for this include the state’s business-friendly environment (lower taxes, fewer regulations) and reasonable cost of living.
The real estate market here can be particularly lucrative for investors, with properties costing an average of 5% less than the national average (some areas are much lower), and the average rent is 13% higher than the national average (some areas are much higher). This is supported by continuing population growth at a robust pace. While these factors all point to 2019-2020 as a good time to invest in real estate, there are still many benefits, even if the market and economy soften.
The advantages of real estate
Different neighborhoods and properties have strengths and weaknesses, but the benefits of rental property ownership include:
- Good for cash flow: Investors often like the regular cash flow from monthly rents, particularly if other parts of their investment portfolio include stocks or non-income generating assets.
- Property values: Many remember the economic downturn from a decade ago, but property values remained relatively stable and now again trending upward. These increases can also enable owners to reinvest in the property or leverage that value for investment opportunities.
- Inflation benefits: Inflation is a good thing when it comes to real estate because it drives up prices for rent while providing less exposure to risk.
It helps to work with the right people
Some investors do not wish to be so hands-on, but the right business partners, smart bookkeeping as well as trustworthy contractors and staff can minimize headaches and maximize opportunities. It is also helpful to work with real estate attorneys who are familiar with the local market and can help ensure that transactions are fair and equitable while protecting the clients’ best interests.