There are investment opportunities here by the way but I would like to go over the issue a little before I get into that. The first thing that shouldn’t be going on is new property development for the construction of new apartments. Brand new apartments are under construction in the northern suburbs of Dallas. Yes, this will make great Dallas investment property; however, for right now it’s just compounding the problem of high vacancy rates for Dallas rental property and other property across the country. If you were a land lord before vacancies rose than you have to deal with the issue at hand. However, for those of us that are looking to invest in rental property the time may be just right.

As an investor looking in at the issue I can’t help but look at all the opportunity in what seems like a mess. If apartments in Dallas are having vacancy issues (vacancy is high) that only means that the apartment complex is worth less. That goes for all the complexes of apartments in Dallas, the properties for sale and the properties that are not for sale. When an investor observes apartment complexes on the market, they should look at the vacancy of the investment property as well as the lease rate. Chances are the rent is lower than what the owners would like it to be. Don’t run away now, an investment opportunity may be here and Dallas investment property like this is not here forever. This could be one of many hidden investment opportunities staring you in the face. After you have looked over the vacancy rate and the rent the tenant pays, make an offer. This is different than residential property, this is Dallas rental property so make an offer based how much return on investment you want to make each year assuming the rent will never increase from what they are today.

I think we can agree on a few things here and that is rent is low and vacancy is higher than normal. SO, looking at Dallas investment property, and particularly Dallas apartments, one might anticipate that the Dallas rental property market will return to normal which means that rent will return to normal (go up) and vacancy will return to normal (go down) which will in turn raise your return on investment. Lets look closer.

Since I don’t know you I’ll use me in this quick and over simplified illustration of a way to buy apartments in this economy.

I’m looking to buy into Dallas Texas property. Let’s say I bought a few Dallas apartments and accomplished a 9% ROI (return on investment) per year. And one day the market normalized and I decide to raise rents 5% which will simultaneously raise my ROI to 14%. Well we can already see that in this case my property was worth the price I bought it for when I bought it in a hurting rental market. I know that the increase of rent has hypothetically added value to my property. Let’s spin a little “history repeats itself” on this scenario. Now that the market looks nice and shiny, an investor that was hiding when the market looked dark and scary is out looking to buy Dallas rental property and comes across one of my Dallas apartments.

Before I finish this example we should have a quick reminder of what properties for sale naturally achieve in a recovered real estate market and in this case its income property.

When a real estate market recovers it tends to demand more money to buy the same property even though the rent has remained the same which makes the return on investment lower for the new “buyer.”

If a buyer in a scary real estate market can buy Dallas apartments and achieve an 11% ROI then most likely that property will only return, say, 8% to the new buyer in a recovered real estate market. Also, it’s easier to find the bargains in a hurting real estate market.

On the “sellers” side of things they get more money in their pocket without increasing rent. On the “buyers” side of things they pay more and there by decrease there ROI. Why? In this case it’s because there is more demand in the market for my Dallas apartments or Dallas rental property.

The conclusion to our example; if the investor buys my Dallas apartment at 8% ROI (lower than my 9% because the deals are starting to go away) then I will make a nice profit. Believe it or not, this is what many investors are doing right now as I write this. New property developments such as the 26,000 new Dallas apartments and other Dallas rental property are going up in the northern suburbs of Dallas right now. This is devaluing existing property for sale since the apartment supply is already too much.

This in turn is one of many investment opportunities presenting itself among Dallas investment property and more specifically Dallas apartments and other Dallas rental property.

Rich in Culture

Out of all the urban arts districts in America, Dallas has the largest of them all.  Dallas’s art district is a great compliment to many historic attractions found all through the city; attractions such as The Dallas Majestic Theater which has hosted many upon many major comedy events and other renowned performing arts acts since the time of vaudeville.  Another historic piece of attraction in the city is the Dallas Museum of Art – which is now featuring Van Gogh.  The Dallas Museum of Art was established in 1903 and held its collection in the historic Fair Park, which is a very historic piece of the public.  The history of Dallas’s culture is a complement to Dallas investment property as well as all other types of Dallas Texas Property.

Dallas On Stage

Dallas’s historic Fair Park is a famous collection of culture and arts that dates back to the turn of the 20th century.  It’s basically a 277 acre of estate with a complex of recreation and educational attractions.  Many of the buildings inside were originally built for the Texas Centennial Exposition in 1936.  That event was such an attraction that it brought in over 6 million visitors.  Fair Park is the home to nine museums, six art attractions a lagoon and the largest ferris wheel in the country.  Nearly all of the buildings that were constructed for the exposition still remain in Fair Park today.  Fair Park was declared a National Historic Landmark in 1986 and is considered a fine example of the Art Deco architecture era.

Aside from the conventional investment property that investors look for in a city, Dallas property is some of the most sought after landmarks in the United States.  It’s an art culture of priceless history of Dallas property that takes us back in time and shows us where the city came from throughout the decades.  Art and great culture history can provide another degree of insight when investing in a city or region.  Dallas Texas Property is surrounded by a rich culture of unique history.

Dallas Homes For Sale

According to the census bureau, the median price for Dallas houses is roughly $161,500.  The required income to qualify for that home price (if you have the credit) is $39,191.  Now, the median income for a family living in Dallas is $62,200.  The margin between these two numbers are healthy enough to qualify families with good credit.  This is one reason why this city is still able to grow well.  If an investor in Dallas were to buy an undervalued home and remodel if need be, they would have a better chance of selling it in a reasonable amount of time compared to other cities throughout the U.S.

Dallas Rental Property

Another way investors make money is through leasing or renting residential property. Dallas property is no exception. The age of a Dallas rental property will often determine the cost per square foot to rent weather it is Dallas apartments or smaller multi family units. The average rental rate per square foot older than the year 2000 is about 84 cents.  Anything that is 2000 or newer commands 10 cents more per square foot.  The vacancy is different as well.  Dallas rental property that is 2000 and older has a vacancy rate around 6.9% and property 2000 and newer has a vacancy of 5.4%.  Being the general rule no matter where you live in the U.S., the newer investment properties will generally treat you better in the long run when it comes to maintenance.  I want to use that rule lightly, because you never know what kind of a deal one might find in older property.  Older property for sale can place a lot of money in your pocket through its equity just by buying them for the right price.

A Nose Dive Isn’t Just For the Birds Anymore, But Dallas Property Has Been Safe

Dallas Property also has a nice batting average when it comes to its stable housing prices.  From 1997 to 2007, Dallas houses and other Dallas investment property appreciated considerably stable compared to the rest of the U.S.’s average especially when compared to California and Florida.  Just before the year 2000 the property in Texas and much of the country were increasing in value at a rate of 6% per year.  Staring in the 4th quarter of 2000 property value across the U.S. started to increase its gain year after year.  By the 2nd quarter of 2005, property across the U.S. peaked at 13% while Texas was roughly at 4.75%.  From 4th quarter of 2005 Texas continued to increase in value to reach 7% in 3rd quarter of 2007.  However, starting in 1st quarter of 2006 the rest of the country began to take a nose dive from 11% to almost 0% by 4th quarter 2007.  California peaked at 27.5% appreciation in 3rd quarter of 2004, and then took a swan dive to -7% in 4th quarter of 2007.  Florida went on a similar ride.  They reached 27% in 1st quarter of 2006 and headed to -5% by 4th quarter of 2007.  Dallas investment property avoided the volatility that the rest of the country experienced which made Dallas property a safer investment.