As one of the most popular cities in Texas continues to rapidly grow, many real estate investors have their eyes locked on Dallas.
Whether you’re looking to get into the market solely as a portfolio piece or you want to use it to generate passive income as a rental property, this market shows some promising returns.
But Dallas is no small town. It’s a sizable area that directly neighbors Fort-Worth and includes a multitude of suburbs that range in characteristics, economic statuses, and so on.
So, where are the best places to invest in Dallas, Texas?
In this blog post, we’ll provide some of the best options for buying single-family homes depending on your budget, personal preferences, and goals.
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The first location on the list is Allen, Texas.
Allen is a northeastern suburb of the Dallas-Fort Worth area. It’s close to the city of Plano, which is ranked 8th in the best cities to buy a house in America by NICHE.
You can expect to find B housing with a cost of around 600k.
The area has an excellent school district, making it a prime spot for families. The Sam Johnson Highway runs down the center of the suburb, providing easy access to and from the heart of Dallas.
Allen includes many amenities, restaurants, and leisure activities, so residents won’t need to travel far for necessities.
There are also nearby outdoor recreational activities included in Allen Station Park, which features hiking trails, sports fields, historical landmarks, and more.
For investors looking for a slightly more affordable option within a more developed area, then Lewisville, Texas is a place to consider picking up a property.
Lewisville is located in the northwestern region of Dallas, and it’s also directly south of Lewisville Lake.
The types of properties are in the B range. A slightly more affordable option than Allen; the median home price is around 400k.
Because Lewisville includes the crossroads of the I-35E Express and the E State Highway, the area is easily accessible for commuters.
For the travelers out there, this city is only a quick drive away from the DFW National Airport.
With its own hospital, school district, and shopping centers, this suburban community has anything anyone could need readily available.
Residents are in no shortage of outdoor activities. There are several parks, nature preserves, and lakes to enjoy.
Third on the list is Frisco, Texas.
Frisco is directly north of Dallas. It’s situated between Lewisville and Allen.
The Dallas North Tollway runs through Frisco and directly to the heart of Dallas, creating easy access through the city.
Frisco has its own retirement community and accompanying recreational activities. However, the area is also a part of a great school district and has other fun family-friendly activities that makes it an option for all ages.
The suburb includes shopping centers, parks, an athletic center, and medical centers.
For investors who want to get into an A-class neighborhood, this suburb is for you.
From Downtown Dallas, University Park is a quick 15-minute drive noth.
These are going to be your A+ properties, with home prices in the millions. However, there are condos you can invest in for under the million mark.
For rental property investors who get into this area, the rent prices are anywhere from $3-10k per month.
University Park is known as a wealthy area. There’s beautiful architecture and neighborhoods, parks, and shopping centers.
The proximity to downtown makes it a great option for commuters, or residents who want access to the city amenities while still living outside of it.
With freeways bordering the north, east, and west sides of the area, there’s easy access across the state.
Southern Methodist University is also within this suburb, providing athletic, cultural, and other activities.
On the other end of the spectrum, for investors who want to pick up a C-class property or are working with a tighter budget, this area offers opportunities for you.
Mesquite is located directly east of Downtown Dallas. It’s a 30-minute drive by freeway.
For investors who are looking for a more affordable option in Dallas, this is a good area to check out.
This area has parks, lakes, and even a nearby farm for residents to explore. It’s also only a quick drive away from Lake Ray Hubbard.
Right in the heart of Mesquite, the 80 and Lyndon B Johnson Freeway intersect, as well as Highway 67. Along these freeways are several shopping centers and other amenities.
Next on the list is the Dallas suburb, Coppell. It’s rated the #1 suburb in Dallas according to NICHE.
Just south of Lewisville, Coppel is northwest of downtown Dallas and right next to the DFW International Airport.
This is another spot with plenty of A-B class properties with the median home price in the $750k zone. However, there are plenty of options on both the lower and higher ends of that scale.
This is another area with a great school district, making it a desirable option for families.
Its close proximity to the airport may make it appealing for residents who enjoy travel.
Coppell is surrounded by freeways traveling in all directions. It’s close enough to downtown for commuters, and it’s also not too far away from Fort Worth.
There are parks, trails, and lakes to be enjoyed. Coppel also has shopping centers and other amenities nearby.
Another place for investors to get a single-family is in the City of Richardson – the twelfth-best city to live in in America, according to NICHE.
Richardson is located to the north, in between downtown Dallas and the suburb of Allen.
For this area, you’re looking at C- to B-class properties with a median home price in the $450k range.
The rent rate, however, is around 3k on average.
The US-75 runs through Richardson and straight to the heart of Dallas, providing easy access for commuters.
There are many parks, shopping centers, and other amenities for residents to enjoy.
There’s a good school district, and included is the University of Dallas Texas, making it a desirable area for families.
Last but not least, we have McKinny, a suburb at the very edge of Dallas.
McKinny is to the northwest of downtown, beyond Allen and borders the edge of the city.
We’re looking at more B properties with a price tag within the $500k range.
It’s far out from downtown and borders the northern, rural areas of Texas, making it the perfect place for residents who don’t want to live in the city but still want easy access to amenities such as medical centers, shopping districts, and schools.
There are parks, golf courses, and country clubs for those that enjoy this lifestyle.
McKinny even has its own national airport for those who like to travel.
Dallas is a city with many options for investors who want to break into the market.
Whether you’re looking to invest in an A-class neighborhood near the heart of the city, or a more rural area with plenty of growth potential, Dallas offers a wide range of potential portfolio acquisitions.
Of course, online research into a market is just the beginning. If you’d like to talk to someone who has boots on the ground experience within this market, both in brokerage and in property management, then reach out to our Dallas office today.
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