Dallas real estate
Anyone know if buying rental property in Dallas is a wise investment move? Some quick calculations shows that the rent is too cheap compared to the monthly mortgage. Often times, it's breaking even assuming that it's rented it 100% of the time. Also, I'm not sure how many people actually rent in Dallas since housing is relatively cheap, but taxes are relatively high. Thoughts?
Depends on the area. Look at West Plano.
How is breaking even a wise investment ?
Breaking even works since someone else is paying your mortgage principal no? The house is slowly yours without you paying for it except for down payment
Your mortgage also stays flat for 30 years. Rent will hopefully increase more than taxes.
It's breaking even only if it's rented out 100% of the time, which isn't a good assumption. Also, it doesn't account for any repairs. But say if I were to break even including all of that...there's still the closing cost to buy/sell + low appreciation rate when compared to the stock market. The down payment would have grown to be bigger over 30 years if put it in the stock market. I'm not sure how fast rent appreciates but I can't see it being higher than inflation over a 30 year period. I was hoping to find property that's cash flow positive by 300-400 a month. Can't find it in Dallas though.
You probably need to do a *thorough* viability assessment before asking an anonymous collective.