These Are the Best Neighborhoods for Dallas Real Estate Investment Properties

Dallas is one of the best cities for buying and owning real estate investment properties across the country for many reasons. Importantly, it is one of the most populous cities in the United States as a result of more and more – especially young – people moving in there. This migration dynamics has made Dallas real estate investment an excellent choice to consider for beginning and experienced real estate investors. Due to the rapid growth, however, the price of real estate is growing as well.

Related: Here Are the Top 10 Real Estate Markets for 2017

But when it comes to investing in Dallas real estate, you should know that rent in the local housing market is high compared to home prices. This translates into better return on investment for rental properties, particularly, single-family houses. In addition to that, the fact that a high percentage of Dallas real estate investment properties are rental comes with a good rental return for the next few years.

However, when it comes to choosing the best neighborhood for investing in Dallas real estate, there are a few main factors to consider. Location, amenities, crime rate, and facilities play a major role in real estate investments. So, here is a list of the top neighborhoods to consider for Dallas real estate investment:

Related: What You Need to Have in Mind When Buying a House Out of State as an Investment Property

• Best neighborhoods for Dallas real estate investment: Preston Hollow

Preston Hollow is a neighborhood in north Dallas, in which the value of rental estate property increased significantly in the recent period. It consists mostly of single-family houses and has a lot of luxurious mansions, which has made it home for many prominent residents.

Moreover, it has a wide variety of amenities and facilities, such as public libraries, restaurants, shopping centers, bars, and coffee shops. It also has a few public and private schools and is close to the Dallas Community College and Southern Methodist University.

• Best neighborhoods for Dallas real estate investment: Uptown Dallas

This is a very diverse and populated neighborhood in Dallas. It has more of an urban style. It also has a high population of educated people, mostly young, and therefore a high rate of employment opportunities. This has impacted the real estate business greatly. However, when it comes to investing in real estate in Uptown Dallas, rental properties are highly demanded. Due to the fact that the population consists mostly of young people and often couples, apartments and single-family homes are more common.

Uptown Dallas offers a wide variety of facilities and activities, which are easily accessible through the various amenities and public facilities. The neighborhood has a few public schools in the Dallas Independent School District (ISD).

• Best neighborhoods for Dallas real estate investment: Richardson

Despite the suburban style, Richardson is a great choice for Dallas real estate investment. It is a home to several festivals and a wide variety of other activities. It hosts the main campus of the University of Dallas. Therefore, its population consists mostly of students. This makes the demand for rental properties high, which means high rental income, especially from apartments and single-family homes.

• Best neighborhoods for Dallas real estate investment: Greenland Hills

Greenland Hills, also known as the M Streets Neighborhood, is another great place to invest in Dallas real estate properties. Having a suburban style that gives the feeling of a small town, it yet offers plenty of amenities.

Single-family homes are common here, and only 55% of the houses are occupied by owners. This fact makes the neighborhood a suitable option for rental property investment.

• Best neighborhoods for Dallas real estate investment: Oak Lawn

Oak Lawn ranks #1 neighborhood on the city level and the 26th on the state level. Which made it one of the most livable neighborhoods in Dallas. It was also rated as one of the trendiest neighborhoods worldwide by Airbnb.

Despite the fact that the living cost is higher than in other places in Dallas, Oak Lawn has great employment and income rates. It also offers lots of amenities in addition to a safer environment and much lower crime rates.

Considering real estate investments, statistics show that only 28.1% of the houses are occupied by owners, which makes the other 71.9% rental properties. This provides a good chance for rental property investment and thus for rental income.

• Best neighborhoods for Dallas real estate investment: Design District

Design District is one of Central Dallas neighborhoods, which have easy access to north and south Dallas. Most of the real estate properties here are rental, and only 2% of the houses are occupied by owners. This fact makes it one of the best neighborhoods for investing in rental properties.

In terms of housing, Design District offers a variety of luxurious houses, single-family homes, and apartments.

Besides having lots of amenities, facilities, and low crime rates, the neighborhood is also a wonderful place to engage in various activities. It hosts restaurants, shopping malls, coffee shops, bars, and much more entertainment facilities. This translates into more of a busy lifestyle, which mostly attracts young people and couples. Therefore, making it one of the best choices for Dallas real estate investment.

• Best neighborhoods for Dallas real estate investment: Deep Ellum-Expo Park

This is yet another neighborhood that is great for Dallas real estate investment. Only 6% of homes are owner-occupied, which makes most of the real estate properties here for rental purposes. Real estate investors should take into consideration that the population is still significantly growing and will continue to grow in the next few years.

Most of the houses here are multi-family homes, and only 6.6% are single-family houses. Facilities and services are easily accessible. However, it is important to note that Deep Ellum-Expo Park has more of a night lifestyle. Which, might not be very suitable for everyone.

• Best neighborhoods for Dallas real estate investment: Downtown Dallas

Downtown Dallas is one of the neighborhoods that is experiencing growth in population. It is expected to increase even more in the next few years. This makes it a good choice when it comes to Dallas real estate investments.

Most of the real estate market consists of rental properties that are more suitable for families. It also has a good variety of both single-family houses and multi-family homes. In addition to easy access to all amenities, services, public facilities, and schools.

Related: Single Family Homes vs. Multi Family Homes: Differences and Similarities

Overall, Dallas is the #1 rated city for real estate investment by Forbes, providing real estate investors with stable rates of rental income, as well as high annual appreciation rates. It also offers a constant growth of opportunities for real estate investors in the long term. This is due to the constant growth of the population.

To find out more about Dallas real estate investment, sign up for Mashvisor.