Real Estate Investing Performance In Garland
|Avg Purchase Price||Avg Cap Rate||Avg Cash on Cash Return||Avg Cash Needed to close|
|Commercial 5+ units LTR||115k - 135k per door||4.5% - 7.5%||3%-6% (assumes 25% down payment)||$35,000 per door|
|Short Term Rental (SFH)||275k - 350k||6% - 8%||8% - 11%||$75,950 (furnished)|
|STR (2-4 Units)||130k - 175k per door||8% - 9%||9% - 12%||$44,750 per door (furnished)|
|Long Term Rental (2-4 Units)||125k - 165k per door||3% - 5%||2% - 5%||$40,150 per door|
|Long Term Rental (SFH)||250k - 325k||2% - 4%||2% - 4%||$62,500|
|Househack (2-4 Units)||130k - 175k per door||n/a||n/a||$10,920 per door|
|Househack (SFH)||275k - 350k||n/a||n/a||$16,325|
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Garland Real Estate Investment Tips
As someone who has sold property in this area for years, I suggest you start your search in Garland’s Northern and Northwestern sides. Concentrate your search on the northern sides of Garland High School and around the Western sides of Highway 78.
These are prime areas for hold/long-term buy investments and entry-level flippers too. Additionally, they have a better collection of well-kept neighborhoods than those located in the South and Southeastern parts of the city.
Besides the well-kept neighborhoods, there is also the issue of tenant availability. What do we mean by this? Let’s look at the top employers in this area, and the number of people they employ:
- Garland ISD is by far the largest employer in the city and employs 7,000+ people who make up a large part of the tenant pool.
- Garland City is the second largest employer, with 2,000+ employers. Its employees are based at the municipal campus located between Austin and State streets.
- The Kraft Heinz Company comes in third with an employee base of around 1,000 people. Its headquarters are located off Forest Lane, directly west of Garland.
From the figures mentioned above, it’s clear that the Northern and Northwestern parts of Garland city have close to 10,000 workers, who make for a great tenant pool. These are ideal customers if you’re interested in investing in long-term/hold investments.
Furthermore, the city of Garland appears quite bullish for an investor looking to invest for 10+ years. It has encouraging statistics for those looking to focus on mixed-use and high-density housing.
Main Activities/Attractions of the City of Garland
I have often found that knowing what you can do or see close to a particular area can influence where you live or where you invest your money. In the case of Garland City, you’ll be glad to know that there are many things to do. They include the following:
- The Lakewood Brewing Company: It’s the perfect place to visit when you’re planning to meet up with friends. It has great live music and locally brewed beer and makes for an excellent spot to sit down and catch up on your work on a Friday afternoon.
- AMC FireWheel 18 is a large and impeccably clean theater. It’s the go-to place when you want to watch the latest blockbuster releases or for a date or night out with family and friends.
- BassPro Shops: They are considered the ideal spots to visit if you want to enjoy some traditional Texan fun. Here, you’ll find everything from a shooting gallery to a revolving new round of classes that you can sign up for weekly. It also has massive freshwater fish tanks and an animal gallery. These shops are focused on the outdoors and their experiences.
- Garland Symphony Orchestra is a small, historic orchestra house with weekly performances featuring renowned musicians.
- Plaza Theatre: Make your way here if you want to enjoy lots of live shows, performances, and plays. It has something new every week and makes for the best way to break the monotony of your daily/weekly routine.
Success stories investing in this area
“Used Victor in finding and purchasing my first investment property. Victor and his team were knowledgeable in providing help along the way especially toward the end while getting everything squared away.”
Long Term Rental
Victor was an awesome realtor! We were first time investors in Texas and he was very responsive, experienced, and pleasant. Every question we had he answered promptly and from start to finish Victor guided us thorough the whole process and made the buying transaction as smooth as possible for us! You will not be disappointed by working with Victor Steffen, thank you Victor!
Long Term Rental
Garland City Investment Strategies
Your investment strategy can significantly impact the return given by your investment. Knowing the opportunities available in the different parts of Garland will enable you to make a more informed decision with regard to where to invest.
Based on my experience with the property market in Garland City, I recommend the following:
- You should consider going for single-family rentals and long-term buy-hold properties. Such properties have traditionally done well in Garland. We often prefer focusing on 4+ bedroom rentals, but Garland is among the few places where a 2- or 3-bedroom rental will attract a premium over a four-bedroom rental. If you are interested in single-family rentals, opt for 2-bedroom rentals with at least 1200 sq ft.
- Garland City offers more opportunities for BRRRR than other metroplex locations we know of. The city is one of the few places where you can come close to executing a valid BRRRR deal. Even with reduced renovation costs, most other locations will prove challenging to complete a 70% ARV purchase.
- Our experience shows that the strongest investment strategy you can employ here is to focus on flips. Although this is not part of our everyday line of work, we can help you make some great headways in the Garland area. Some of the flip deals our team has executed have led to yields of between 10 and 15% gains after deducting the renovation costs. For example, you can buy a flip costing 200K, spend 50K on renovations, and sell it for 285 to 300K. Considering the work you have put in, the transaction, and the carrying costs, you should be happy to walk away with a net profit of around 25K.
Is Garland a Good Real Estate Investment?
Garland, Texas, has been popular among real estate investors over the last 10 years for several reasons, including:
Affordability: Garland is known for its relatively affordable housing options compared to other major cities in the Dallas-Fort Worth metropolitan area, making it an attractive option for first-time homebuyers, families, and real estate investors. According to data from Zillow, the median home value in Garland has increased from around $125,000 in 2011 to around $200,000 in 2021. This represents a growth rate of about 60% over the last decade. The rise in housing values can be attributed to a number of factors, including strong demand from buyers, a growing population, and a strong local economy. Despite this growth, however, Garland remains an affordable housing market compared to many other cities in the Dallas-Fort Worth Metroplex. As of 2021, the median home value in Garland is still lower than the median home value in many other cities in the area, making it an attractive option for real estate investors looking for affordable investment opportunities.
Strong Rental Demand: With a growing population and a strong local economy, there is a steady demand for rental properties in Garland. This demand for rental properties can help to ensure a consistent and stable rental income for real estate investors.
Growing Economy: Garland is home to a diverse range of businesses and industries, including manufacturing, healthcare, and retail. This strong local economy provides a stable source of employment for residents and helps to support the local real estate market.
Some of the largest employers in Garland include:
Baylor Scott & White Medical Center – This healthcare organization was founded in 1997 and employs around 1,000 people in Garland.
Garland Independent School District – The school district employs around 5,000 people and is one of the largest employers in the city.
FedEx Office – FedEx Office is a subsidiary of FedEx Corporation and has been operating in Garland for over a decade. The company employs around 500 people in the city.
City of Garland – The city government is a major employer in Garland and employs around 2,000 people.
Texas Health Presbyterian Hospital – Texas Health Presbyterian Hospital was founded in 1976 and employs around 1,000 people in Garland.
Proximity to Major Cities: Garland is located in the Dallas-Fort Worth metropolitan area, which is one of the fastest-growing regions in the United States. This proximity to major cities like Dallas and Fort Worth, combined with its strong local economy and relatively affordable housing options, makes Garland an attractive place to live, work, and invest.
Is it a Good Time to Invest in Garland?
It’s a great time to invest in Garland real estate and garland rental properties.
There have been several large developments happening in Garland, Texas in recent years. Some of the most notable ones include:
The Firewheel Town Center: This large shopping mall and entertainment complex features a variety of retail stores, restaurants, and entertainment options. The Firewheel Town Center is a popular destination for residents and visitors alike.
The Broadway Farmers Market: This outdoor market features a variety of local vendors selling fresh produce, baked goods, and handmade crafts. The Broadway Farmers Market has become a popular gathering place for residents and has helped to revitalize the downtown area.
The Granville Arts Center: This performing arts center features a large theater, several smaller performance spaces, and a gallery. The Granville Arts Center is a cultural hub for the city and is home to a variety of musical, theatrical, and artistic performances.
The Downtown Revitalization Project: In recent years, the city of Garland has undertaken a large-scale effort to revitalize its downtown area. This effort includes the creation of new public spaces, the renovation of historic buildings, and the development of new mixed-use buildings.
Best Neighbourhoods to Invest in Garland
Here are a few examples of communities in Garland Texas that are considered desirable by most residents:
Firewheel is a neighborhood located in the northeastern part of Garland, offering a range of homes, parks, and a convenient location near shopping, dining, and entertainment options.
Club Hill is a neighborhood located in the northern part of Garland, offering a range of homes, parks, and a convenient location near shopping, dining, and entertainment options.
Wellington is a neighborhood located in the northern part of Garland, offering a range of homes, parks, and a convenient location near shopping, dining, and entertainment options.
Here are some of the more affordable communities within Garland our investors have had success in:
Oates Drive is a neighborhood located in the eastern part of Garland, offering a range of affordable homes and a convenient location near shopping, dining, and entertainment options.
Holford is a neighborhood located in the central part of Garland, offering a range of affordable homes and a convenient location near shopping, dining, and entertainment options.
Glenbrook Valley is a neighborhood located in the eastern part of Garland, offering a range of affordable homes and a convenient location near shopping, dining, and entertainment options.
Financing Information for Garland Real Estate Investment
One of the biggest challenges for investors looking to focus on the Garland real estate market is where to find financing. Fortunately, JVM can help in financing long-term buy/hold rental properties.
For investors who would rather focus on BRRRR or flip strategies, we encourage them to reach out to our team, and we will help them find a suitable hard money lender. Our team will ensure they get the financing they need to buy the properties in question.