The Dallas-Fort Worth area remains one of the hottest real estate markets in the country, and it’s only going to heat up more with summer around the corner.
This summer, families will be looking to move while school is out of session. Prices will tick up slightly, and, while inventory is relatively low, there will be more opportunities and a steady churn of transactions.
As a real estate investor, you look at the market a little bit differently than a family looking to buy a primary residence before school starts. So, what should you do with your properties in this hot market?
Here’s a look at 4 things to consider doing with your properties over the next few months.
1. Sell and Buy Something With Better Returns
Our hot Dallas-Fort Worth real estate market means that your property is likely worth a lot more now than it was when you first bought it. Have your returns been what you expected when you first invested? If not, now might be a great time to sell and buy something with better returns.
As an added benefit, some investors may have enough equity in one property to sell and buy two others. If you’re a fairly new investor with just one property, this might be the perfect time to scale up to two.
2. Add to Your Portfolio
Even if you’re not selling, the next few months might still represent a good time to buy and hold for the long-term. Real estate investors are savvy, and they know that there’s still value out there on the market — if you know where to look.
There are at least two good approaches to finding value in a hot market:
- Emerging Areas: Look for the next “cool” place to live, or a formerly small town on the outskirts of the DFW area that is transforming into a bustling suburb. It wasn’t too long ago that Keller and Frisco were far-flung outposts with rock bottom home prices. They are now among the most popular places to live in the Dallas-Fort Worth area.
- Find a Fixer-Upper: Many individuals and families balk at the thought of buying and renovating a home. But, when real estate investors find the right opportunities, they often have the time, flexibility, knowledge and resources to execute on a renovation that is good enough to command stronger rental rates.
3. Refinance For Lower Rates
Looking to achieve better cash flow? You might consider refinancing. It all depends on the rate and terms you secured when buying your property, but interest rates continue to sit near record lows. Refinancing might help you free up enough monthly cash to afford another property.
4. Optimize and Sit Tight for the Long-Term
In our hot real estate market, you can also choose to optimize your portfolio and sit tight for the long-term. Optimizing might include refinancing to lower your monthly obligation, or it could mean making small improvements that will lead to higher rental rates.
The bottom line is this: Your investment begins to look better and better as the market gets hotter and hotter. There’s nothing wrong with sitting back and enjoying the returns and the increasing possibility of a big payout when you divest.
5. Get Help From the HUNTAHOME Team
The right DFW property management company can help you take advantage of this hot real estate market. At HUNTAHOME, we are the leading provider of property management in Dallas and Fort Worth, representing investors, homeowners and tenants and providing a wealth of services and resources.
We can help you:
- Buy a property
- Sell a property
- Manage the day-to-day management of your properties
Most importantly, we know how to serve as an efficient, effective third-party landlord for rental property owners. When you need a partner that can provide outstanding property management in Fort Worth and Dallas, we deliver.Get in touch to learn more about our DFW property management and other services.