How to BRRRR in Dallas, TX

Start with the gross math. Dallas's typical home value is $311,957; ZORI (Zillow's rent index) sits at $1,631/mo. That's 6.27% gross annual yield. That's well above the national 4-5% baseline — meaningful cushion for a BRRRR to pencil even at today's debt cost.

Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you'll likely clear DSCR 1.10-1.20 in Dallas — tight but bankable. Don't fall in love with marginal deals; reject anything that doesn't pencil at 1.15 minimum.

Rent demand color: Dallas rents ($1,631) sit 15% below the national median ($1,930). Local rent is the constraint here — even at favorable acquisition prices, the rent side of the math is the limiting factor.

Refi appraisal risk: Dallas home values are down 3.4% YoY. That's the biggest threat to your refi — if you're underwriting today and refinancing in 8 months, comps may have softened further. Stress-test your refi ARV at -5% of today's median.