117 Home SFR Investment Portfolio Dallas-Fort Worth, TX

Highlights:

• Significant upside with cash flow and embedded equity day one
• Opportunity to scale to 332 rental homes with additional 215 homes in Corpus Christi
• Extremely risk mitigated investment opportunity
• Institutionally managed and operated portfolio for several years
• Continued supply challenged market driving further rent and value growth
• Costs 37% more in DFW to own the same median priced home Vs renting the same home, an average savings of $1290 per month for renters
• Loan Assumption with 6.52% interest rate via Berkadia
• Ninety-Nine percent (99%) 3-bedroom and 4-bedroom homes averaging 1440/sf
• Strong in place cash flow with discount to retail pricing opportunity
• Historically strong occupancy averaging 95%-96%
• Lagging supply of single-family homes and higher for longer mortgage rates driving rentership and revenue growth
• All SVN® Offices Are Independently Owned & Operated
• Local Broker License Information: www.SFRhub.com/realestatelicensing

Description:

Contact:
TOM JOHNSTON
Managing Director | Designated Broker
SVN | SFRhub Marketplace
T: 602.441.5354
C: 602.403.3695
tom.johnston@svn.com
License #: BR507919000


BOR:
Steve Fithian
SVN | Trinity Advisors
Managing Director

SFR investment scattered asset rental home portfolio in Dallas, TX, with significant upside, substantial embedded equity per portfolio’s retail home market values, and currently stable positive operating cash flow with value upside with an assumable loan. This 117-home SFR rental portfolio, which can be increased to 332 homes with an additional 215-homes located in Corpus Christi, Texas, have collectively been institutionally managed and operated for several years. This is a rare opportunity to acquire the entire 332 rental home portfolio, or a single portion MSA, in major growth markets with embedded equity and strong cash flow Day 1. Existing SFR rental demand is high, as new construction home building still lags on our national housing supply, with mortgage rates remaining higher for longer on residential retail buyers, causing MLS listings to sit longer on the market, Buyers are choosing to rent in higher demand. This demand is creating rent growth between 2025-2027 at an estimated 9.6% according to John Burns Real Estate Consulting (JCREC). They are also estimating 7.1% home value appreciation over the same time period, following the market’s price softening in 2024. Given this value growth proposition with significant equity upside on the retail pricing of the homes, this is a true institutional grade opportunity for investors to acquire immediate cash flow and concurrent value upside. This presents a rare opportunity for investors to work with a motivated seller.

The portfolio is currently operating at 96% occupancy rolling into the peak seasonal leasing season. Historically the portfolio has fluctuated between 95% - 96% occupancy and currently sits at 12.8% below stabilized year 1 rents, with current rents 10% below market rents today. The successful buyer may opportunistically ride the next wave of value growth, bringing the NOI up from $1,567,590 to $1,856,945 with renewals and/or new leases at market rents, decreasing operating expenses through scalability, and increasing additional income. The gross potential income today is 10% below market, at $2,550,555, offering the next buyer a value-add opportunity to stabilize year 1 income in early 2026, a 10% increase in gross revenue with minimal operating adjustments over the next 12 months, reaching $2,922,547. Dallas is projected to see rents increase 2.4% in 2025 according to JBREC, indicating significant rental value upside in one year, given the current rents are 10% below market rents along with the natural rental appreciation for 2025. Coupled with the aforementioned and augmented with anticipated SFR rental market upswing, as less would be buyers purchase homes while 7%+ mortgage rates throughout the year hover higher for longer, rental demand may very well surge higher than predicted as buyers continue choosing renting over home ownership. Another important factor potential retail buyers and renters are now considering today is the Cost of Ownership Vs Rentership, which in Dallas today, a renter will save significantly every month by not purchasing a home. The median home payment compared to renting the same home is $3,523 (ownership) Vs $2,233 (rentership), a monthly savings of $1,290 to rent the same home. That makes it 37% more expensive to own vs rent the exact same home.

Dallas is one of the largest cities in the country and an economic powerhouse that continues to grow and persist, having added more jobs since 2020 compared to any of its MSA competitors nationally. Thanks to the region’s low costs of doing business, corporate relocations have been essential to the underlying success of the DFW market, as well as the city’s central location to the greater USA, continued population growth, and access to major airports. Dallas had the number 1 net in-migration nationally between 2022-2024, coupled with a significant housing shortage, continued population growth of 7.7% through 2027, household income growth projected at 6.6% through 2027, and several other encouraging key growth variables investors will realize, puts this SFR investment opportunity in an extremely risk mitigated position.

SVN | SFRhub Marketplace is proud to offer such a unique investment opportunity with significant value upside, strong in-place cash flow, embedded day one equity, along with the greatest downside risk mitigation an investor will find on the market today.


Dallas-Fort Worth continues to lead economic and demographic growth in the United States. No other MSA in the country has added more jobs or people compared to Dallas in the last 4 years post pandemic. DFW ended the year slightly above the national average on employment growth. Financial activities jobs in the area are up 4% year over year and the DFW MSA added over 153,000 new residents, many finding jobs in a robust Healthcare and Government marketplaces.

Companies continue to seek opportunity in the Dallas-Fort Worth MSA and relocating here due to the low cost of doing business and highly skilled labor force across various sectors. Recently, both Goldman Sachs and Wells Fargo announced the construction of regional campuses, employing over 9000 jobs. Charles Schwab recently relocated their headquarters from San Francisco to the Westlake suburb in DFW, creating a 1.1m SF campus and 5,000 additional jobs starting in 2025.

Corporate relocations have been essential for the underlying success of the metro area. Toyota recently moved its 2 million SF North American headquarters to Plano, bringing over 4,000 jobs. Other national leaders have relocated to the area as well in recent times, such as Caterpillar, AECOM, USAA, McKesson Corp, and more have found new homes in Dallas-Fort Worth, bringing more manufacturing, engineering, pharmaceutical and distribution centers to the economy. Coupled with existing companies such as, AT&T, 7-Eleven, JPMorgan Chase, and Fannie Mae as large existing employers, the DFW market will continue to thrive. Low costs of doing business, centrally located in the USA, and access to major transportation hubs will continue to seed growth and fuel demand for the economic competitiveness, as well as the residential and commercial real estate growth in the market.