If you are an investor looking for appreciation, The Cedars should be on your radar. The proximity to downtown and the enormous public and private investment in the development of the area are sure to raise the value of your investment in the coming years. Whether you plan to live in your investment or rent it out, the outlook for the area is very strong.
As you probably know, Dallas has long been known as a great real estate investment market due to the huge number of companies and people moving here because of the fantastic economic climate, and The Cedars is currently one of the hottest neighborhoods in Dallas for both big time developers and individual investors.
In a Multi-Housing News article announcing the groundbreaking of a new multi-family development in The Cedars by Origin Investments and StoneHawk Capital Partners, David Welk, managing director with Origin Investments, is quoted as saying, “We have a defined box in which we can search for property around the country. Texas is a target market for us, mostly around Dallas-Fort Worth and Austin. The Cedars is one of the most dynamic opportunity zones in terms of its location and one of the hottest infill markets in the area.”
The blog Landlord Tips (www.landlordtips.com) lists The Cedars as one of the top “Dallas Neighborhoods Landlords are Investing in” for 2022. “In recent years, the neighborhood is undergoing a tectonic transformation. The introduction of new means of transportation, brand new DART Cedars Station, facilitated the influx of young professionals who crave urban living.”
The Cedars is also an IRS Designated Qualified Opportunity Zone, which means that investors and developers who set up Opportunity Zone Funds and invest in The Cedars will realize significant tax breaks on past capital gains and on future gains and earnings. This means Opportunity Zone investors will continue to bring big money to The Cedars, thereby increasing the value of everyone’s investments there.
1030 EXCHANGE INVESTORS
Are you nearing the end of your 1031 exchange window to identify replacement properties?? We can help you get under contract by the “identify” deadline and closed in plenty of time for the closing deadline. With multiple units available, we can work with you to tailor your purchase to your replacement value. With the expected appreciation and operating income potential of this hot neighborhood, this is the perfect place to re-invest the appreciation achieved in the previous hot market. Investing in the neighborhoods you just came from will likely not generate the same kind of appreciation that this neighborhood has the potential to offer.
The Cedars is a strong rental market for downtown workers and for people who are looking for something other than your average Dallas apartment complex, but there is not a lot of inventory.
Contact us if you would like us to send you rental comps to see what a long-term investment in The Cedars could look like for you. While each person’s situation is different, with a fairly standard down payment, you should be able to easily pay for your investment with the rent you will collect.
This area is also hot for shorter-term rentals, like AirBNB and traveling nurses. As the new developments that are planned for the area come to fruition, that market potential is only going to grow. The proximity to the convention center makes it a favorite for convention attendees, as well as for downtown events, like concerts and sporting events. Please contact us if you are interested in estimates of potential short-term rental revenue provided by a local short-term rental property manager, who manages other short-term rentals in the Dallas area. If you are looking for a turnkey short-term rental, our designers can work with you to furnish the townhomes with everything from furniture to art to plates and silverware.