Every real estate investor is determined to find the most profitable real estate markets and finance potentially successful properties there. However, there are many options for the real estate investor to choose from. One of the most profitable real estate markets for 2018 is in the City of Dallas, Texas. Why is that so? Moreover, which are the neighborhoods to offer the best return on rental properties in Dallas? Are you willing to learn more? Keep on reading to explore everything you need to know about Dallas real estate investing and Dallas investment properties.
#1 The Dallas Real Estate Investing Market
Before jumping into discussing the main question and exploring where exactly we can find the best return on rental properties in Dallas, we need to review the Dallas real estate investing market. There is a reason why this is one of the most profitable real estate markets in the United States currently. Dallas investmenthave been properties generating high rental income as well as high return on investment in the last couple of years. Leading factors for this development might be the growth of the population along with the expansion of the job market. This means that the demand for traditional rentals has increased as well. In fact, there are more renters of Dallas investment properties than owners. As you can imagine, this leads to receiving a steady rental income if investing in Dallas traditional rentals. Nevertheless, that is not the only rental strategy that has a big chance to prosper in Dallas. The market for Airbnb rentals in the city is developing quickly as well. There are two reasons behind this. The first one is the increased number of business meetings held in the city. Additionally, the tourist interest and preference towards Airbnb rentals over hotels also has a positive impact. Are you interested in learning more? Check out “Is Dallas Investment Property a Smart Investment Choice Right Now?”.
After having a quick overview of the market in Dallas based on the rental strategy, it is time to observe the neighborhoods with the best return on rental properties in Dallas.
#2 In Which Neighborhoods Should You Invest for the Best Return on Rental Properties in Dallas?
As you probably already know, the rental strategy is an important factor is finding the best return on rental properties in Dallas. This is because every area is more suitable for one rental strategy over the other. That is why when exploring in which neighborhoods you should invest for the best return on rental properties in Dallas, we will divide them depending on the rental strategy. You should also make sure to read “Top 5 Areas for Dallas Investment Properties”.
Neighborhoods for the Best Return on Rental Properties in Dallas: Airbnb Rentals
Oak Cliff
This district is suitable for both types of rental strategies. This is due to the fact that the neighborhood is the business district of Downtown Dallas. As you can imagine, this attracts many business travelers who stay at short-term rentals.
- Median Property Price: $ 398,000
- Airbnb Rental Income: $ 1,988
- Airbnb Cash on Cash Return: 1.66%
- Airbnb Cap Rate: 1.66%
- Airbnb Occupancy Rate: 38.23%
Northwest Dallas
Northwest Dallas is yet again another district in the city associated with successful Airbnb rentals. The neighborhood is famous for its Dallas Love Field airport. Even though the airport is not big, it is a stopping location for many layover flights, which explains the demand for short-term rentals in the area.
- Median Property Price: $ 249,000
- Airbnb Rental Income: $ 1,492
- Airbnb Cash on Cash Return: 1.68%
- Airbnb Cap Rate: 1.68%
- Airbnb Occupancy Rate: 29.27%
Farmers Market
This district is perfect for short-term rentals. As the name suggests, there are many farmers markets situated in the area. In addition, this location is popular for various events it hosts throughout the whole year.
- Median Property Price: $ 285,000
- Airbnb Rental Income: $ 1,430
- Airbnb Cash on Cash Return: 0.16%
- Airbnb Cap Rate: 0.16%
- Airbnb Occupancy Rate: 40.18%
Neighborhoods for the Best Return on Rental Properties in Dallas: Traditional Rentals
Near East
Due to the fact that the neighborhood offers various facilities, Near East is surely one of the best areas for long-term rental properties in Dallas. Most of all, it is associated with high income per capita.
- Median Property Price: $ 382,495
- Traditional Rental Income: $ 2,043
- Traditional Cash on Cash Return: 2.74%
- Traditional Cap Rate: 2.74%
South Boulevard
South Boulevard is another one of the neighborhoods in the city which offer the best return on rental properties in Dallas. This is a historic area of the city known for its strongly developed community. Additionally, the properties there prove to have quite high cash on cash return in comparison to other Dallas areas.
- Median Property Price: $ 133,500
- Traditional Rental Income: $ 1,031
- Traditional Cash on Cash Return: 2.79%
- Traditional Cap Rate: 2.79%
Oak Cliff
As previously described, this area is suitable for both types of rentals. We already briefly discussed that it attracts business travelers. However, the job opportunities as well as the many parks in the area make the neighborhood a desired location for long-term tenants as well.
- Median Property Price: $ 398,000
- Traditional Rental Income: $ 1,996
- Traditional Cash on Cash Return: 1.36%
- Traditional Cap Rate: 1.36%
#3 Mashvisor’s Investment Property Calculator
It is important to note that all the results displayed above have been acquired through Mashvisor’s investment property calculator. “But what is that?”, you may ask. Mashvisor’s investment property calculator is a tool which can help a real estate investor in finding the best return on rental properties in Dallas as well as the rest of the United States. Also, the tool quickly and accurately computes various real estate metrics such as the ones presented above. Another thing that it will provide you with is detailed information about the property of choice as well as its surrounding area. In addition, the tool will show which rental strategy is better for the specific investment. As you can imagine, using Mashvisor’s investment property calculator will save you a lot of time and effort when searching for the best investments in the market. Do you want to get more information about the tool? You can read “Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier”.
Are you willing to learn more about real estate investing? Do you want to finance the best return on investment properties? Sign up for Mashvisor. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
