Dallas-Fort Worth Real Estate Investor Club

Cities to stay out of for buy/hold

  • 15 Mar 2013 8:28 PM
    Message # 1243939
    I am getting ready to start looking at buy & holds.  Are there any cities that you would suggest staying out of?

    For example, I talked to one guy that didn't want to buy in Richardson because they require a city inspection every time you have rent to a new tenant. Inspection cost a few hundred bucks (i didn't verify) and is a pain.

    Any other cities yáll try to avoid?
  • 19 Mar 2013 5:39 PM
    Reply # 1246971 on 1243939
    Deleted user
    You can find a million reasons not to buy a property but there is only one reason to buy "CASHFLOW".  In my experience the area does not matter as long as the numbers work.  I do have properties in Garland which requires inspection after every tenant at a meager cost of $55.  Think of it this way you are paying someone to inspect your rental home for only $55.  You can not find a home inspector for this cost.  The one area I stay away from are those that are in the "hood".
  • 20 Mar 2013 6:45 AM
    Reply # 1247356 on 1243939
    Deleted user
    I agree with Rocky! It is simply a cost of doing business. If you are planning to be an honest landlord that provides safe housing for your residents, this is only a good thing. These type inspections keep the area up because the homes there are homes people want to live in that are being maintained. Just make sure the cost is built into your business model so your cash flow is still as positive as you need it to be.
  • 25 Mar 2013 8:03 AM
    Reply # 1251121 on 1243939
    Robin Carriger (Administrator)

    I hate forced city inspections, and I'll fight against them whenever I can.  In my opinion, they're unnecessary and are simply another tax on those who are already paying more than enough.  Having said that, if forced inspections are not already in the city where you buy, they soon will be, so that alone should not stop you from buying.

    As far as buying in "the hood," I agree with Rocky.  I don't want to have to wear a bullet-proof vest when I collect the rent.  BUT some of the most successful real estate investors I know buy almost exclusively in "the hood," because the cashflow potential in "the hood" is oftentimes far better there than anywhere else.

    Happy Investing!

  • 26 Mar 2013 12:47 PM
    Reply # 1252198 on 1243939
    Thanks for the replies!
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