3502 Melinda Hills Drive Dallas, TX 75212
$319,000 | 3 Bedrooms | 2 Bathrooms | 5.0% Cap Rate
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Listing Description
Listing: Awning - Redfin - Zillow
Introducing a prime investment opportunity at 3502 Melinda Hills Drive in Dallas, Texas, this 3-bedroom, 2-bathroom property is an ideal addition to any rental property investor's portfolio. Priced at $319,000 with a compelling 5.0% cap rate, this move-in ready home offers significant potential for both appreciation and steady rental income, with an estimated monthly rent of $2,670 and minimal renovation costs.
The thriving Dallas rental market continues to attract investors, driven by the city's diverse economy, growing population, and prominent employers like American Airlines, AT&T, and Southwest Airlines. With a broad range of rental listings and vacancies catering to various tenant preferences, now is the perfect time to capitalize on this high-potential rental property in a flourishing city that promises excellent growth prospects and impressive returns for investors.
Property Details:
- Address: 3502 Melinda Hills Drive, Dallas, TX 75212
- Price: $319,000
- Bedrooms: 3
- Bathrooms: 2
- Cap Rate: 5.0%
Key Investment Highlights:
- Lucrative investment opportunity in a thriving rental market
- Strong potential for appreciation and steady rental income
- Move-in ready condition with minimal renovation costs
- Attractive 5.0% cap rate
- Excellent growth prospects in a city with a diverse economy and growing population
Don't miss out on this outstanding investment opportunity in Dallas. Click "I'm Interested in this Property" to get started, and let us help you find the best representation, close on the property, and select a top-notch property management service in the area. Invest in the booming Dallas rental market today and reap the rewards for years to come.
I'm Interested in this Property
Investment Financials
How much does the home cost?
$319,000
How much will it earn in rent?
$2,670 per month
How much will it cost to renovate?
The home is move-in ready and requires no renovations. However, we are estimating $1,500 for small touchups if needed. So, it seems that no major renovation is necessary at this time.
How much cash can you take home in the first year?
Based on the provided information, in the first year, you can expect a negative cash flow of $116 per month, resulting in a total of $1,391 negative cash flow for the entire year. However, the first-year cash-on-cash return is -2.1%, and the property is expected to appreciate by 7.4% in the same period. The rent growth is expected to be 3.5% per year. As the property's value increases and rents grow, you can expect better returns in the following years.
What is the cap rate for this property?
The estimated cap rate for this property is 5.0%.
All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.
Why People Rent In Dallas, Texas
Where is Dallas, Texas?
Dallas is a major city located in the state of Texas in the United States of America. It is located in North Texas and is the third-most populous city in the state, after Houston and San Antonio.
What companies are the major employers in and around Dallas, Texas?
- American Airlines: This is one of the largest airlines in the world, and its headquarters is located in Fort Worth, which is just west of Dallas.
- AT&T: This telecommunications company is headquartered in Dallas and is one of the largest employers in the city.
- Southwest Airlines: This is another major airline headquartered in Dallas, with a focus on low-cost flights.
- Baylor Scott & White Health: This is the largest not-for-profit healthcare system in Texas, with multiple hospitals and clinics throughout the Dallas area.
- Texas Instruments: This company designs and manufactures semiconductors and is headquartered in Dallas.
- JPMorgan Chase: This is one of the largest banks in the world, with a significant presence in the Dallas area.
- Lockheed Martin: This aerospace and defense company has a large facility in Fort Worth, just west of Dallas.
- UT Southwestern Medical Center: This is a leading academic medical center located in Dallas, with a focus on research and education.
- ExxonMobil: This oil and gas company has a significant presence in the Dallas area, with several offices and facilities located throughout the region.
- Toyota: This car company has its North American headquarters located in Plano, which is just north of Dallas.
What are the demographics of Dallas, Texas?
According to the US Census Bureau, as of July 1, 2021, the estimated population of Dallas, Texas was 1,317,929, making it the ninth-largest city in the United States.
The racial and ethnic composition of the city is diverse, with the largest racial group being White, Non-Hispanic (24.9%), followed by Black or African American, Non-Hispanic (24.5%), Hispanic or Latino (41.6%), and Asian, Non-Hispanic (4.6%). Other racial groups, including Native Americans and Pacific Islanders, make up 4.3% of the population.
The median age of Dallas residents is 33.8 years, with a slightly higher percentage of females (51.1%) than males (48.9%). The median household income in Dallas is $54,574, and the poverty rate is 19.1%. The city has a higher-than-average percentage of residents who have attained a bachelor's degree or higher (35.8%).
In terms of language, 65.8% of Dallas residents speak English only, while 34.2% speak a language other than English at home. The most commonly spoken non-English languages in Dallas are Spanish (29.3%), Vietnamese (2.0%), and Tagalog (1.3%).
What is the Niche neighborhood grade and school grade in Dallas, Texas?
According to the Niche neighborhood grade for Dallas, Texas is a B+. Niche rates neighborhoods based on several factors such as crime rates, public schools, cost of living, job opportunities, and local amenities.
In terms of school grades, Dallas Independent School District (DISD), which serves Dallas, has an overall grade of C- according to Niche. However, there are several highly rated schools within the district, including School for the Talented and Gifted (TAG) and the Irma Lerma Rangel Young Women's Leadership School, both of which have received an A+ rating from Niche.
What is the property tax rate in Dallas, Texas?
According to the total property tax rate in Dallas County, Texas is 0.208983 per $100 of assessed value, broken down into 0.008963 for the county and 0.20002 for various cities and school districts. This means that for a property with a market value of $200,000, the property tax would be approximately $417.97 for the county and $4,000.40 for the various cities and school districts, for a total of $4,418.37 per year.
According to the median property tax in Dallas County is $2,827 per year for a home worth the median value of $129,700. This is equivalent to an effective property tax rate of 2.18%, which is one of the highest in the United States and ranked 194th out of 3143 counties.
How many rental listings and vacancies are in Dallas, Texas?
There are a significant number of rental listings available in Dallas, Texas. Zillow has 591 single-family rental listings available in the area, with various options for renters to choose from. Meanwhile, Realtor.com offers over 5,000 rental listings in and around Dallas, Texas.
Regarding rental vacancies, the iPropertyManagement website provides data on rental vacancy rates in Texas. Between the second quarter and third quarter of 2022, Texas's rental vacancies increased by 9.46%. The rental vacancy rate in Texas also increased by 2.56% in 2021. However, from 2015 to 2020, Texas's rental vacancy rate declined by 8.79%.
Additionally, the iPropertyManagement website notes that the Dallas-Ft. Worth-Arlington metropolitan area has a rental vacancy rate of 7.0%, up 12.9% year over year. In contrast, San Antonio-New Braunfels has a lower rental vacancy rate of 4.6%, but it is up 100% year over year. Overall, renters in Dallas, Texas have a wide range of rental listings to choose from, but the rental vacancy rates may vary depending on the specific area.
What's the average rent in Dallas, Texas?
The average rent in Dallas, Texas varies depending on the neighborhood and type of property. The most affordable neighborhoods in Dallas are Arbor Ridge, Arbor Springs, and Casa Loma Estates, with an average rent of $962/month. The median rent for houses in Dallas ranges from $500 to $30,000, with a median rent of $1,981. Over the past month, the average rent for a studio apartment in Dallas increased by 4% to $1,379, while the average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 2% to $2,091. It is important to note that these figures are subject to change over time and may vary depending on a number of factors, such as location, size, and condition of the property.
From Listing to Rental
- Place an offer on this property: If you want help finding the best representation, simply submit your information by pressing "I'm Interested in this Property"
- Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
- Hire a property manager to manage your property: If you choose to use Property Management we can help you select the best service and get you a deal on management in the area.
