How to Buy Investment Property in Arlington TX in 2024

How to Buy Investment Property in Arlington TX in 2024

January 25, 2024

Contemplating the purchase of an investment property in Arlington, Texas? It’s a thought worth exploring. With the city’s steady population growth, fueled by both domestic and international migration, the demand for housing remains robust. Arlington’s appeal extends beyond its growing numbers, with affordability, abundant job opportunities, and cultural diversity making it an attractive destination for those seeking improved prospects and a higher standard of living.

In this guide, we will look into:

  • Important Arlington, Texas real estate investment market trends for 2024.

  • Hot neighborhoods and towns to look for investment opportunities.

  • Tips for finding and financing an investment property in Arlington.

Why invest in Arlington real estate?

In the 2022 Census Bureau Population Estimates for the U.S., Arlington ranks prominently, showcasing its vitality as the 7th largest city in Texas. The city’s growth trajectory is promising, with Cushman & Wakefield estimating a significant increase in the metro area’s population by over 1.2 million from 2020 to 2029. This projection positions Arlington as a city poised to attract new residents, intensifying competition for real estate and potentially driving up rents and home values.

Arlington is not just witnessing an influx of residents; it’s also a magnet for businesses. The city’s thriving business hub continues to attract large corporations, contributing to the creation of new jobs and bolstering the local economy. The economic landscape is diverse, providing stability and potential growth for the real estate market.

As a testament to its economic prowess, Arlington is home to key industries, and its strategic location further enhances its appeal.

Arlington, situated in the Dallas-Fort Worth metropolitan area, offers a unique blend of urban amenities and a welcoming suburban atmosphere. The city’s real estate market stands out for its affordability, providing a range of housing options at a relatively accessible price point. This factor positions Arlington as an appealing choice for various investors, from those entering the market for the first time to seasoned professionals seeking diverse investment opportunities.

Arlington real estate market trends

The real estate market in Arlington exhibits stability and consistent growth. Home sales indicate sustained activity, reflecting the city’s appeal to a diverse array of homebuyers and renters. With a median home value competitive with the national average and average rental income reflecting market demand, Arlington provides a conducive environment for investors seeking both value and potential returns.

Strategically located between Dallas and Fort Worth, Arlington benefits from the economic vibrancy of the entire DFW metroplex. Major industries, including healthcare, education, and manufacturing, contribute to Arlington’s economic resilience, fostering job stability and further supporting the local real estate market.

In recent years, Arlington’s real estate market has exhibited resilience and steady growth. Single-family home sales and total property sales have shown consistent positive trends, and the total dollar volume in real estate transactions has climbed, reflecting the city’s appeal to a broad spectrum of homebuyers and investors.

With an average home value that remains competitive at $320,000 as of December 2023 and an average rental income of$1,525, Arlington provides an environment conducive to real estate investment. The months of inventory, a key indicator of market balance, have expanded slightly, presenting opportunities for both buyers and sellers in a market that is generally considered favorable for real estate activity.

Hot neighborhoods for Arlington investment properties

North Arlington

Known for its family-friendly atmosphere and proximity to attractions like Six Flags Over Texas, North Arlington offers a mix of housing options. Investors may find opportunities in single-family homes, catering to residents seeking a suburban lifestyle.

Entertainment District

Home to the AT&T Stadium and Globe Life Field, the Entertainment District attracts visitors and residents alike. This area presents investment potential in short-term rentals and accommodations, especially during major events and sports seasons.

South Arlington

With its diverse housing stock and accessibility to major highways, South Arlington appeals to a broad range of residents. Investors exploring this area may find opportunities in both rental properties and potential long-term appreciation.

Dalworthington Gardens

An affluent and residential community, Dalworthington Gardens offers a quieter atmosphere with a focus on quality living. For investors seeking upscale properties and a more exclusive market, this neighborhood is worth considering.

Arlington is not only a city with a bright future; it’s also a city with a thriving present. Before making a move in the real estate market, it’s crucial to comprehend the overall landscape.

How to buy an investment property in Arlington, Texas

The process for investing in Arlington, Texas real estate can be broken into five steps:

1. Determine your investment strategy

There are many ways to build wealth with real estate. Your first step is to decide which strategy is right for you. 

Do you want a single- or multi-family home? Are you up for a fix-and-flip or a BRRRR? Or do you prefer a turnkey rental property with tenants locked in? What about a new construction project?

There are pros and cons to each real estate strategy, and before diving in headfirst, you need to determine which plan makes the most sense for you.

2. Plan your financing

Explore financing options, including conventional loans, hard money loans, or joint ventures. Understand the requirements and timelines associated with each option to make informed decisions based on your investment goals.

3. Go property hunting

Connect with local wholesalers and real estate agents specializing in Arlington to discover off-market opportunities. Consider factors such as vacancy rates, population growth, and development projects when evaluating potential investment properties.

4. Secure financing

If time is of the essence, explore financing options that offer quick approval and closing. Whether opting for conventional loans or hard money loans, having a pre-arranged financing plan positions you for better success in your plans. At Longleaf, rental loans take as little as two weeks, and short-term residential loans (AKA bridge loans) can close in 48 hours.

5. Refinance (if necessary)

If you take out a bridge loan for fast financing, you eventually need to refinance. Bridge loans are meant to “bridge” you over from the time of purchase to the time of refinancing — usually 6 to 24 months.

You can refinance with a conventional loan if you qualify. If not, a long-term rental loan comes with fewer restrictions. 

At Longleaf, we can save you fees by bundling your bridge loan together with your refinance.

Need financing for an investment property in Arlington?

Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.