Investors looking for a new and vibrant market that can offer a great return on investment should consider McAllen.
McAllen, Texas is enjoying increased interest from both investors and homebuyers leading to a vibrant rental market and an appreciation in property value. The median home price in the city has been on an upward trend since 2019.
If you’re looking for an affordable property market to invest in, keep reading! McAllen may be right for you.
The Allure of the McAllen Property Market
McAllen has been growing steadily as a commercial hub in Texas. There has recently been a job growth spur, attracting many people to the area.
With the cost of living on the rise worldwide, individuals and families are looking to live in an affordable area. The cost of living in McAllen is relatively low, especially when compared to the median average in Texas. The cost of transportation, accommodation, utilities, and food is affordable.
It’s important to also mention the beautiful weather in the area. While the weather tends to get a little bit chilly in winter, the season is quite mild and you will only need your light jacket for the better part of January. As for the rest of the year, the weather is warm.
McAllen is renowned for its tourism and hospitality sectors. Thanks to the beautiful weather, visitors flock to the area throughout the year to enjoy the attractions and activities. Some of the loved options include the Palm View Golf Course, the South Padre Island, and the numerous local wildlife reserves.
As a landlord, you can also choose to mix long-term and short-term rentals to take advantage of the higher demand for short-lets during the winter season.
Tips When Investing in McAllen Property
#1: Location
The location of your investment is paramount to its success. You must understand that property is an immovable asset and must be ideally located in proximity to amenities and services that potential tenants would wish for.
Put yourselves in the shoes of a renter. Renters want a place that offers convenience in every form. Our experience in Texas real estate also reveals that such areas enjoy steady appreciation in value and also have high demand.
#2: Costs
The price of the property is not the only cost that you are going to incur should you want to invest in property. To finalize the deal, there are other related costs, often referred to as closing costs.
These include attorney fees, escrow deposits, insurance, real estate commission, and title insurance. If you are taking out a mortgage, you will have to pay extra in the form of mortgage points.
Apart from the closing costs, there is also the possible cost of renovations. Not all properties are renter ready. ‘Renter ready’ refers to a rental property that is in tip-top condition and a renter can enter immediately.
You might have to touch up on a few elements which will cost you a few hundred dollars. So, you need to assess all the costs involved before purchasing a rental in McAllen.
#3: Management
Many new property owners don’t consider who will manage their investment. At the last minute, they decide that self-property management would be ideal, but don’t consider the work that they have to put in to meet the needs of their tenant.
Property management requires you to inspect the property regularly and respond to impromptu maintenance requests to keep your property in compliance with county laws, State, and federal regulations. You would also be in charge of managing tenant issues, collecting rent, screening tenants and more.
Most property owners don’t want the stress associated with the management of their property. That’s why it is ideal for you to hire an experienced property management company that can offer you a comprehensive solution.
In McAllen, Texas, there is no better service provider than Keyrenter McAllen Property Management.
#4: Old vs. New Construction
In a growing city such as McAllen, you will find investment options in old, established neighborhoods and options in new and upcoming ones. Both have their pros and cons. As a potential investor, you need to consider what fits your financial situation and personal needs best.
Conclusion
As you can see, property investing is more than just selecting an ideal neighborhood. It is technical and requires that you analyze different options and take a plethora of issues into consideration.
For help with buying an investment property in McAllen, contact Keyrenter McAllen Property Management.
We are an experienced and reputable property management company that is ready and willing to help you on your property journey. We have the experience, expertise, and resources that you need.
Our knowledge of the local industry has allowed us to guide dozens of clients in the past. Our property experts will walk you through every step and ensure that you feel confident when you put your signature on the agreement.
Get in touch with Keyrenter McAllen today.