Real Estate Investing Performance In Plano
Financing is always a source of concern for an investor looking to branch out into a new area. For this reason, we have partnered with conventional lenders to ensure you’ll get the financing needed to buy Plano real estate properties.
Remember to consider the investment performance and average prices of the properties you want to buy before making the plunge. And while our investment advice may appear generic, it has proven helpful to the many clients we have worked with over the years.
The table below provides a summary of what you can expect from a Plano rental:
|Avg Purchase Price||Avg Cap Rate||Avg Cash on Cash Return||Avg Cash Needed to close|
|Commercial 5+ units LTR||na||na||na||na|
|Short Term Rental (SFH)||375k - 550k||5% - 8%||8% - 9%||$105,000 (furnished)|
|STR (2-4 Units)||na||na||na||na|
|Long Term Rental (2-4 Units)||na||na||na||na|
|Long Term Rental (SFH)||325k - 400k||4% - 6%||4% - 6%||$82,500|
|Househack (2-4 Units)||n/a||n/a||n/a||n/a|
|Househack (SFH)||275k - 350k||n/a||n/a||n/a|
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Investment Tips for Plano Real Estate
Plano is a community that’s surrounded by positive growth around it. To its north, you’ll find Frisco and Mckinney, Dallas, and Garland’s best suburbs to its south, upcoming construction expansion to its east, and the renowned Lewisville Lake communities to its West.
This is an area that has managed to record aggressive development in the last ten years, and there are no indications of it slowing down. If you’re an investor looking to invest in the rental market here, consider focusing your search along the Highway 75 corridor.
An important point to remember, the properties seated on the northeastern edge of Plano are all within the Allen School District. Allen has made a name for itself as a hotbed of both academic and athletic talent.
It’s, therefore, not surprising or uncommon at all to find working families relocating to Allen hoping to capitalize on the available academic and athletic opportunities. All these opportunities are offered by the local public system, which is recognized nationally.
When it comes to its price to value ratio, you’ll find that this is one of the most undervalued areas within the larger metropolitan area. It’s one of those places in Plano where an investment in rental properties is bound to give good returns.
Main Activities/Attractions of the Plano Area
The major employers in Plano include the following:
- JPMorgan Chase: JPMorgan Chase has a world-class campus in Plano that’s set to host around 6,500 jobs from its current 4,500 employees, providing a ready tenant base.
- Bank of America: It remains one of the largest banks in America, with a presence in 38 states and in the District of Columbia. It has 4,000+ financial centers to date.
- Toyota: It has operated within Plano and Dallas for over 20 years and remains an active member of the Plano Chamber of Commerce.
- Samsung: The electronics giant remains the largest tenant at Legacy Central and is continuously expanding its offices to take in more workers.
- Siemens: Its global corporate offices are located in Plano, where thousands of its workers toil around the clock to develop new and innovative software solutions.
- Cigna: The healthcare provider has a medical campus in the area, from where its employees develop new medical plans and other solutions for your ever-changing medical needs.
- Pepsi: It boasts of a wide product portfolio which has seen its products being used by consumers in 200+ countries.
- Capital One: Its campus comprises seven buildings, all within a one-mile radius.
- Coca-Cola: Coca-Cola has its North American offices in Plano, where it has been handling bottled and canned soft drinks since early 2008.
- Baylor Scott White: It’s a not-for-profit facility with a 160-bed capacity that has been operating in Plano since 2004.
- AT&T: AT&T is one of the largest cell phone dealers in the country, offering smartphone and prepaid phone deals.
- Hewlett-Packard: Its Plano Campus sits a few miles from the Legacy Business Park and is considered one of the largest employers in the area.
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
Investment Strategies for Plano
From the list of activities and attractions listed above, it’s clear that long-term housing and corporate rentals are the way to go. Plano is one of the few places in Texas where the rents have caught up to the prevailing purchase prices.
Investors are thus able to cash flow positively even when buying market-rate rental properties. Our experience in this area has shown that it’s not unheard of for an investor to buy a property at $350k and then lease it to a tenant at a monthly rate of $3,000.
Mind you, all these are long-term tenants, meaning you never have to deal with vacancies.
The presence of dozens of corporate and regional headquarters in the region also means that there is an untapped potential for corporate housing and mid-term rentals. For example, 30-day leases or 6-month rental terms in furnished units can quickly fill up.
It’s a move that can leave you charging a premium of up to 50% of that of long-term rentals.
Is Plano a Good Real Estate Investment?
Plano, Texas, is considered a great market for real estate investors for several reasons:
Strong Economy: Plano is home to a thriving economy, with a diverse mix of industries including technology, healthcare, finance, and retail. This strong economy has helped to create jobs and drive population growth in the area, which in turn has helped to support demand for housing. Plano, Texas has grown significantly over the last decade, driven by several factors such as a strong job market, population growth, and high-quality infrastructure. The city is home to a thriving business community, including a large number of corporate headquarters and regional offices for major companies such as HP, Toyota, and JPMorgan Chase. The presence of these companies has helped to create a strong job market in Plano, which has attracted a growing number of residents and businesses to the area. Additionally, the city has invested in infrastructure improvements and amenities, including parks, recreational facilities, and shopping centers, which have helped to make Plano a highly desirable place to live and work. All these factors have contributed to the growth of the local economy, making Plano an attractive destination for real estate investment.
Growing Population: Plano has experienced significant population growth in recent years, driven in part by its strong economy and high quality of life. This growing population has created a strong demand for housing, and has helped to support the local real estate market. According to the U.S. Census Bureau, the population of Plano increased from approximately 259,000 in 2010 to over 286,000 in 2020. This growth is largely due to the city’s strong economy, highly-rated schools, and high quality of life.
Affordability: Compared to other major metropolitan areas in Texas, Plano offers relatively affordable housing options, making it an attractive option for first-time homebuyers, families, and real estate investors. Median home prices in Plano, Texas have seen steady growth over the last decade. According to data from Zillow, the median home value in Plano was approximately $384,000 as of February 2023. This represents an increase from around $250,000 in 2013.
High Quality of Life: Plano is known for its high quality of life, with excellent schools, parks, and recreational opportunities, as well as a thriving arts and culture scene. This has helped to make Plano a desirable place to live, and has helped to support demand for housing in the area. Here are a few popular things to do in Plano:
Visit the Art and Culture Scene: Plano is home to several art galleries and cultural centers, including the Interurban Railway Museum, ArtCentre of Plano, and the Courtyard Theater.
Enjoy Outdoor Activities: Plano has numerous parks and green spaces, including Arbor Hills Nature Preserve, Oak Point Park & Nature Preserve, and Bob Woodruff Park.
Shop and Dine: Plano is home to several shopping centers, including The Shops at Willow Bend and Stonebriar Centre, as well as a wide range of dining options, from casual to upscale.
Sports and Entertainment: Plano is home to the Dr. Pepper Ballpark, the Toyota Stadium, and the Dr. Pepper Arena, which offer a variety of sports and entertainment events.
Festivals and Events: Plano hosts several annual events, including the Plano Balloon Festival, the Plano International Festival, and the Plano Artfest.
Proximity to Major Cities: Plano is located just north of Dallas, which is one of the largest and most dynamic cities in the United States. This proximity to Dallas, combined with its strong local economy and high quality of life, makes Plano an attractive place to live, work, and invest. In recent years, Plano, Texas has seen significant infrastructure development in several areas. The city has invested in transportation improvements, including the expansion of highways and the construction of new roads, bridges, and bike paths. Additionally, Plano has invested in upgrades to its water and wastewater systems, as well as in the construction of new parks, trails, and recreational facilities.
Is it a Good Time to Invest in Plano?
Here are 4 key developments and why right now is a great time to invest in Plano TX real estate:
There are several major developments happening in Plano, Texas that are impacting the real estate market in the area. Here are a few examples:
Legacy West: This mixed-use development is located in West Plano and is home to several major corporations, including Toyota, Liberty Mutual, and JPMorgan Chase. The development also features shopping, dining, and entertainment options, making it a highly desirable place to live for both residents and businesses.
The Shops at Willow Bend: This shopping center is one of the largest malls in Texas and is located in West Plano. The mall has undergone major renovations in recent years and now features a wide range of shopping, dining, and entertainment options.
The Boardwalk at Granite Park: This mixed-use development is located in West Plano and features office space, retail, dining, and residential options. The development is located near several major highways and is within close proximity to both Legacy West and The Shops at Willow Bend, making it a highly desirable location for both residents and businesses.
Frisco Station: This mixed-use development is located in Frisco and is home to several major corporations, including Toyota, Liberty Mutual, and JPMorgan Chase. The development also features shopping, dining, and entertainment options, making it a highly desirable place to live for both residents and businesses.
Best Neighbourhoods to Invest in Plano
The most popular neighborhoods in Plano, Texas for families can vary based on a number of factors, including location, proximity to amenities, schools, and home prices. However, some of the neighborhoods in Plano that are considered to be popular for families (and by proxy, real estate investors) include:
West Plano is a neighborhood located near major highways and shopping centers, offering a range of homes, parks, and a convenient location near amenities and attractions.
Willow Bend is an upscale neighborhood located near major highways and shopping centers, offering spacious homes, parks, and a convenient location near amenities and attractions.
Park Boulevard is a neighborhood located near major highways and shopping centers, offering a range of homes, parks, and a convenient location near amenities and attractions.
Legacy is a master-planned community located near major highways and shopping centers, offering a range of homes, parks, and a convenient location near amenities and attractions.
Glen Meadows is a neighborhood located in West Plano, offering spacious homes, parks, and a convenient location near major highways, shopping centers, and schools.
Creekside at Preston
Creekside at Preston is a master-planned community located in West Plano, offering a range of homes, parks, and a convenient location near major highways, shopping centers, and schools.
Ridgeview Ranch is a neighborhood located in West Plano, offering spacious homes, parks, and a convenient location near major highways, shopping centers, and schools.
Financing Information for Plano Real Estate Investors
If you’re looking for financing, you’ll be glad to learn that JJVM can finance owner-occupied loans for single-family or house hackers’ investments. Such a loan will attract a 20% down payment.