Dallas is the oldest incorporated city in Gaston County with close proximity to Gastonia and Charlotte NC. Investors like, JMS Home Buyers, buy houses in the area because of its location. We love being within 45 minutes away during a rehab or when managing a rental. And with all the development along Hwy 321 that is a strong indicator there is more to come along this corridor which fuels the demand for housing. With countless options in Dallas, it can be overwhelming to know where to begin or which property is the best fit. In this blog, we will outline key considerations to help you select the ideal investment property to add to your Dallas, NC portfolio.
Location, Location, Location
Are you looking to buy a rental property in Dallas, NC? The golden rule of buying an investment property is the location. The location of your investment property will have an impact on your exit strategy. Will you hold it as a rental, rehab and flip it at the retail price, or rehabbing and renting it as a short furnished rental? You want to look for properties in neighborhoods that fit your strategy. Is your strategy to hold rentals or fix and flip? If you are a buy and hold investor location for you may mean that it is within driving distance for you. Location impacts rent values. Can you get the rent you are need to cash flow the property after the rehab? And location will determine the resale value and anticipated appreciation you are counting on over the years.
Another aspect of determinng if the location is right for investing in is proximity to public transportation, shopping centers, and entertainment venues. If your renters need to commute, make sure the property is close to major highways or business centers. Rental properties located near these amenities are often more desirable to tenants and can fetch higher rental rates.
Condition of the Property
When investing in a property in Dallas, NC, it’s important to carefully consider its condition. This is a crucial factor that can significantly impact on your investment in the long term. Older properties may seem like a more affordable option, but they may require more maintenance and repairs on a regular basis. The older homes in Dallas are known for foundation issues. The red clay in the area plays havoc on a home and after 30 years the crawl space is going to need some attention. This could translate into higher costs over time and may affect your bottom line.
On the other hand, newer properties may come with a higher price tag but require less maintenance in the long run. They may also be more energy efficient, which can help you save on utility bills and increase your overall profitability. It is crucial to find the right balance between the upfront costs and long-term expenses when making your investment decision.
To ensure that you make an informed decision, it’s important to conduct a thorough inspection of the property before making a purchase. Having a general contractor in Dallas as part of your team will be important. This will help you identify potential issues and estimate the cost of repairs. Moreover, do not hesitate to seek the advice of a professional real estate agent or a property inspector who can help you assess the condition of the property and provide valuable insights into the local market trends. By carefully considering the condition of the property, you can make a smart investment that will provide you with a good return over time.
Consider the Size and Layout of the Property
When making a decision about an investment property, consider its layout and size. Smaller homes may require less upkeep over time but don’t have the rent potential that are larger home will have. Here are some factors to keep in mind:
- Whom do you envision living in the home?
- Homes in Dallas that have ample square footage for renters will produce higher rent prices.
- Properties with 3+ bedrooms and at least 2 bathrooms will rent faster.
By taking these factors into account you will be prepared to account for the expenses related to maintenance and rehabbing the property. Home prices may seem affordable in Dallas as compared to other areas in North Carolina but and costs associated with repairs and maintenance will be considered the same.
Investment Strategy
When choosing an investment property in Dallas, it’s important to consider your investment strategy. Are you looking for a long-term rental property or a short-term vacation rental? Are you planning to flip the property for a profit? Your investment strategy will impact the type of property you should choose.
For long-term rental properties, look for properties in areas with a consistent demand for housing. If you are planning to flip the property, look for properties in up-and-coming neighborhoods that are poised for growth. Particularly the ones that need a little work and, therefore, may have been overlooked by other property buyers.
Are you looking to build up your cash reserves by flipping housing? If this is your strategy you will want to work with a real estate agent that is familiar with the housing market in Dallas. They will help you determine what price points are selling quickly and help identify what buyers are searching for.
Financing the Property
Financing is crucial when choosing an investment property in Dallas. You’ll want to consider your budget and available financing options. Financing options for investment properties can vary depending on your credit score, income, and the type of property you’re looking to purchase. Keep your eye on the interest rate and any special terms you need to know about.
Many investment property buyers consider hard money loans in order to secure the financing they need. It’s important to research the loan to make sure that it is the best fit for your financial situation.
Property Management
Property management is another important consideration when choosing an investment property. If you’re planning to manage the property yourself, you will need to consider the amount of time and effort that will be required. If you’re planning to hire a property management company in Dallas, you’ll need to factor in the cost of their services.
Final Thoughts
Picking the right investment property can be an overwhelming experience. However, keeping these essential factors in mind can help simplify the process. When choosing an investment property in Dallas, it’s crucial to consider the location, condition, investment strategy, financing options, and property management. These factors can make a significant impact on your investment’s success. By taking the time to evaluate your options carefully, you can ensure that your investment property is a profitable and successful venture. At JMS Home Buyers LLC, we work with investors to help them find the properties that will help them reach their goals. To learn more about us, the local market, or current investment properties for sale, reach out to our team at 704-707-6016!