There’s a reason why investors both local and foreign are flocking to the area. With its strong growth in employment, population, and the economy making up lost ground from the recession in 2008, real estate investment in Dallas – Fort Worth area might just be the safest, lucrative investments you could make for 2014.
Dallas-Fort Worth has one of the strongest job growths in the country today. According to the Bureau of Labor Statistics, employment is up 104,900 jobs in April year over year which is twice the national average. This job boom, add to that the rapid population growth in the area, makes a very strong rental market. With its low taxes and interest rates, investors are finding positive returns of 8-10%.
How long will this trend continue? If the country continues to see low interest rates, then we will continue to see this rise in real estate investment.
With the current statistics, you’ll earn enough that you can plan your retirement in about 7-10 years’ time just on your renters’ income. You don’t have to be a genius to do the math: with a $100K property on a 15-20 year note, the cash flow from renters will be $200-$300 every month. If you have 4-5 good deals in a 2-3 year period, you can fast track those retirement plans.
The numbers may seem overwhelming, but don’t just nosedive into something you haven’t fully thought out. Making a bad investment can rob you of your life savings overnight. “It’s critically important to have a sharp realtor and property management company overseeing your investment” say Joel Westrom of Westrom Home and Service. “Owners and Investors too many times get too involved with rental challenges and give in to unnecessary concessions that cost them deeply. It’s a business and needs to be treated as one” explains Westrom.
Property managers are necessary and cost-efficient in the long run. They charge anywhere from 7-10% of the rents offering turnkey services. The pros are management companies get slightly higher rents; they also have a thorough tenant screening process which yields to less turnover. These two attributes alone pays for the project manager fee 2-3 times over.
There will always be cautionary areas in the real estate investment scene, what with the regulatory and political uncertainty. In spite of this, Dallas-Fort Worth remains to be one of the strongest markets in the country.
Planning to make a safe and smart investment? Take advantage of its strong market and check out Dallas-Fort Worth now.