Over the last few years, the Dallas real estate market has proven to be one of the best and most profitable in the US housing market! So, if you’re a real estate investor looking for the best real estate investment opportunities to make money in 2018, searching for investment properties in the Dallas real estate market would be a smart move.
If you’re wondering why Dallas is experiencing a growth in real estate investment opportunities, here are the main reasons:
First, more people (millennials and young entrepreneurs in particular) are moving to Dallas, and more job opportunities are opening. Moreover, many companies from cities like San Francisco and Los Angeles have relocated to Dallas thanks to the city’s business-friendly environment (lower cost, lower taxes, and fewer business regulations) in addition to the lower cost of living for employees.
This had a positive impact on the city’s economy – overall, Dallas experienced a growth of 6.3% over the last three years, with a job market growth of 3.9%! As a result, this has increased demand for housing as more people are looking to rent investment properties and has consequently boosted real estate investment opportunities.
The second reason why a real estate investor would find the best real estate investment opportunities in the Dallas real estate market is the emergence of Airbnb short-term rental properties. Dallas has always been a tourists’ destination thanks to the many attractions like the Dallas World Aquarium and Reunion Tower. The city is also home to several excellent museums, such as the Dallas Museum of Art and the Sixth Floor Museum at Dealey Plaza. With more and more people visiting Dallas every year, a smart real estate investor would search for short-term real estate investment opportunities to make money.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
As you can see, Dallas real estate is a top market for investing in both long-term and short-term investment properties. Subsequently, a Dallas real estate investor will notice a continuous construction of investment properties of all types! Real estate investment opportunities in the Dallas real estate market range from cosy condos to ultra-luxurious homes. Therefore, any real estate investor can find investment properties that generate high returns on investment no matter what his/her investing preference and financial budget and goals are.
Therefore, whether you’re looking to buy your first investment property, or you’re a real estate investor looking to grow your investment portfolio, you’ll definitely find the best real estate investment opportunities in the Dallas real estate market in 2018!
Click here to start looking for the best real estate investments in the Dallas housing market!
In order to further assist you, here’s an analysis of the Dallas real estate market and specific neighborhoods in which a real estate investor will find the best real estate investment opportunities, as calculated by Mashvisor’s investment property calculator.
Related: Real Estate Investing Terminology: Investment Property Calculator
A Quick Summary of the Dallas Real Estate Market
- Median Property Price: $343,591
- Traditional Rental Income: $1,778
- Airbnb Rental Income: $832
- Traditional Cash on Cash Return: 1.57%
- Airbnb Cash on Cash Return: -0.08%
- Traditional Cap Rate: 1.57%
- Airbnb Cap Rate: -0.08%
The Best Neighborhoods in the Dallas Real Estate Market
Real Estate Investment Opportunities in Oak Lawn
- Median Property Price: $375,000
- Traditional Rental Income: $2,238
- Airbnb Rental Income: $1,228
- Traditional Cash on Cash Return: 0.94%
- Airbnb Cash on Cash Return: -1.97%
- Traditional Cap Rate: 0.94%
- Airbnb Cap Rate: -1.97%
- Airbnb Occupancy Rate: 30.62%
Real Estate Investment Opportunities in Oak Cliff
- Median Property Price: $398,000
- Traditional Rental Income: $1,996
- Airbnb Rental Income: $1,988
- Traditional Cash on Cash Return: 1.36%
- Airbnb Cash on Cash Return: 1.66%
- Traditional Cap Rate: 1.36%
- Airbnb Cap Rate: 1.66%
- Airbnb Occupancy Rate: 38.23%
Real Estate Investment Opportunities in City Center District
- Median Property Price: $489,000
- Traditional Rental Income: $2,133
- Airbnb Rental Income: $1,960
- Traditional Cash on Cash Return: 0.06%
- Airbnb Cash on Cash Return: 0.08%
- Traditional Cap Rate: 0.06%
- Airbnb Cap Rate: 0.08%
- Airbnb Occupancy Rate: 47.94%
Real Estate Investment Opportunities in Far North
- Median Property Price: $436,950
- Traditional Rental Income: $1,925
- Airbnb Rental Income: $1,293
- Traditional Cash on Cash Return: 0.48%
- Airbnb Cash on Cash Return: -1.19%
- Traditional Cap Rate: 0.48%
- Airbnb Cap Rate: -1.19%
- Airbnb Occupancy Rate: 17.97%
Real Estate Investment Opportunities in Northeast Dallas
- Median Property Price: $399,000
- Traditional Rental Income: $1,628
- Airbnb Rental Income: $1,254
- Traditional Cash on Cash Return: 0.66%
- Airbnb Cash on Cash Return: -0.31%
- Traditional Cap Rate: 0.66%
- Airbnb Cap Rate: -0.31%
- Airbnb Occupancy Rate: 18.34%
Real Estate Investment Opportunities in Farmers Market District
- Median Property Price: $285,000
- Traditional Rental Income: $1,202
- Airbnb Rental Income: $1,430
- Traditional Cash on Cash Return: -0.37%
- Airbnb Cash on Cash Return: 0.16%
- Traditional Cap Rate: -0.37%
- Airbnb Cap Rate: 0.16%
- Airbnb Occupancy Rate: 40.18%
Real Estate Investment Opportunities in Northwest Dallas
- Median Property Price: $249,000
- Traditional Rental Income: $1,260
- Airbnb Rental Income: $1,492
- Traditional Cash on Cash Return: 0.79%
- Airbnb Cash on Cash Return: 1.68%
- Traditional Cap Rate: 0.79%
- Airbnb Cap Rate: 1.68%
- Airbnb Occupancy Rate: 29.27%
Real Estate Investment Opportunities in South Boulevard-Park Row Historic
- Median Property Price: $133,500
- Traditional Rental Income: $1,031
- Airbnb Rental Income: $156
- Traditional Cash on Cash Return: 2.79%
- Airbnb Cash on Cash Return: 0.92%
- Traditional Cap Rate: 2.79%
- Airbnb Cap Rate: 0.92%
- Airbnb Occupancy Rate: 55.62%
Real Estate Investment Opportunities in North Dallas
- Median Property Price: $669,000
- Traditional Rental Income: $3,169
- Airbnb Rental Income: $739
- Traditional Cash on Cash Return: 1.1%
- Airbnb Cash on Cash Return: -0.62%
- Traditional Cap Rate: 1.1%
- Airbnb Cap Rate: -0.62%
- Airbnb Occupancy Rate: 28.13%
When looking at the profitability metrics for the neighborhoods in the Dallas real estate market above, do not forget that these numbers are only averages. Although the average cap rate or cash on cash return might be low or even negative, you can still find excellent real estate investment opportunities. To start looking for the best real estate investments in the Dallas housing market, click here.
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Dallas Real Estate Market – Conclusion
The above-mentioned neighborhoods are those in which real estate investors will find the best real estate investment opportunities in Dallas that are worth their money and that will generate a high return on investment, as calculated by Mashvisor’s investment property calculator. Thus, whether you’re a beginner or an experienced real estate investor, Dallas real estate market should definitely be on your list of places in which to buy investment property.
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
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