How to Buy Investment Property in Plano TX in 2024
Considering Plano, Texas for Real Estate Investment? Here’s what you need to know.
If you’re exploring real estate investment opportunities in Texas, don’t overlook the flourishing city of Plano. With a population on the rise and a robust economy, Plano offers an enticing landscape for investors seeking long-term growth and stability.
Plano, situated just north of Dallas in Collin County, has undergone significant development and transformation in recent years. As a key player in the Dallas-Fort Worth metropolitan area, Plano has gained attention for its strong job market, quality of life, and diverse cultural offerings.
In this guide, we will look into:
- Important Plano, Tx 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 Plano.
Why invest in Plano real estate?
In the latest Census Bureau Population Estimates for the U.S., Plano stands out as a rapidly growing city. With a population set to surpass 300,000 residents, Plano’s growth trajectory positions it as a noteworthy destination for real estate investment.
The city’s economic landscape is marked by a mix of industries, including technology, finance, healthcare, and telecommunications. Plano houses the corporate headquarters of major companies such as Toyota North America, J.C. Penney, and Keurig Dr Pepper, contributing to a stable job market and economic resilience.
Despite its metropolitan status, Plano maintains an attractive affordability factor in its real estate market. The city offers a range of housing options, from single-family homes to modern apartments, catering to diverse preferences. The potential for property appreciation and a steady demand for housing make Plano a compelling choice for investors looking to capitalize on the city’s growth.
Plano real estate market trends
In recent years, Plano’s real estate market has shown resilience and growth. According to local real estate reports, the city has experienced a consistent increase in property values and demand. Single-family home sales have remained strong, reflecting the city’s appeal to both homeowners and renters.
The median home value in Plano is approximately $495,000 (5.3% up from previous year based on the December 2023 report from Redfin), with an average rental income of $2,150 according to Zumper. These figures, combined with a diverse inventory of properties, contribute to a dynamic real estate market where investors can find opportunities for both short-term gains and long-term investment strategies.
Hot neighborhoods for Plano investment properties
Legacy West
This vibrant mixed-use development is a focal point for Plano’s urban lifestyle, featuring upscale residences, offices, retail, and entertainment. The area’s growth and popularity make it a prime location for real estate investment.
Downtown Plano
Undergoing revitalization, downtown Plano has transformed into a cultural and entertainment hub. With a mix of historic charm and modern developments, this area attracts both residents and businesses, presenting investment opportunities in residential and commercial properties.
West Plano
Known for its top-rated schools and family-friendly atmosphere, West Plano continues to be a sought-after residential area. Investors can explore opportunities in single-family homes and condominiums, catering to the diverse needs of the local population.
Eastside Village
Positioned for growth, Eastside Village offers a mix of housing options and commercial developments. With ongoing urban planning initiatives, this neighborhood presents potential for appreciation and rental income.
Plano, Texas, emerges as a compelling choice for real estate investment. Its growing population, diverse economy, and attractive neighborhoods contribute to a market ripe with opportunities. Whether you’re a seasoned investor or considering your first property, Plano’s real estate landscape offers a promising canvas for financial growth and success. As with any investment decision, thorough research and consultation with local experts are key to making informed choices in this dynamic and evolving market.
How to buy an investment property in Plano, Texas
The process for investing in Plano, 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 Plano 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 Plano?
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.