We like to preach how investors should view the housing market as a loose collection of autonomous kingdoms rather than a monolithic mass. For purposes of turning a profit and making a solid investment deal, there is no national housing market but there are plenty of local opportunities where you can make money right now. Dallas is a great example. As you might be aware, JasonHartman.com tracks more than three dozen different geographical areas. We’re constantly evaluating whether or not any of them are a good investment under current conditions. In case you were wondering, Dallas has been a solid BUY for a while now, and we thought we’d show you a few real world examples of the kind of money you could earn immediately from a suitable property investment.
This four bedroom, 2.5 bathroom house offers 1,743 square feet of living space and is offered for $119,500. As we all know, down payment requirements are more stringent than they were a few years ago. Depending on your creditworthiness, $34,058 would make you the owner of this investment property. But what you’re really interested in is how much you’re going to earn on your investment, right? Rents will bring in about $14,340 annually, with outgoing costs of maintenance and mortgage leaving you with $1,718 annually in profit. While this is only $143 per month, keep in mind you’re eventually going to own the property outright! What other investment on the face of the earth lets you turn a profit while you’re buying it? None that we know of.
If you have a little more money to put into a down payment, this property might be more to your liking. This three bedroom, two bathroom house in Fort Worth has just over two thousand square feet and is offered at $149,500. Factor in closing costs and down payment and you need $42,608 to get started. A monthly rent of $1,595 brings in $19,140 in income. Subtract maintenance and mortgage costs and you are left with a positive cash flow of $269 monthly, which works out to be about an 8% cash-on-cash return during the first year. Subsequent years are going to make that number even better.
If you’ve ever been interested in investing in property deals, Dallas offers plenty of choices. Please visit us at JasonHartman.com to learn more about how to take solid steps towards financial independence.
The Jason Hartman Team