Welcome Back,

Welcome back everyone, I hope your are enjoying you Saturday! Today we are back and ready to dive right into another real estate market in Texas. This time we are checking out the city of Amarillo. Enjoy!

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Real Estate Investing

Market Snapshot:

Amarillo, Texas
The Amarillo real estate market is seeing moderate growth, with the median home price at $237,000, a 5.2% increase year-over-year. Amarillo benefits from its affordable housing and strong demand for single-family homes. The inventory remains tight, with active listings down by 4.5% from last year. This is largely driven by a growing local economy, thanks to sectors like agriculture, energy, and healthcare. However, rising mortgage rates are challenging affordability for first-time buyers, pushing more demand toward rental properties.
Median Home Price: $237,000
YoY Price Growth: 5.2%
Active Listings: 820 (down 4.5% YoY)

Deal Of The Day:

12-Plex in Amarillo, TX
Price: $1,025,000
Units: 6 (2-Bed, 2-Bath each)
Monthly Rental Income: $6,000
Cap Rate: 8.1%
This recently updated duplex in Amarillo is located near major employers and schools, making it ideal for long-term tenants. Each unit rents for $1,000/month, providing just enough income to break even or cash flow a bit, with an 8.1% cap rate. The property also has room for appreciation, as Amarillo’s rental market continues to expand. This is a great opportunity for investors seeking reliable appreciation.

Deal Rating: 8.2/10

This deal is very promising showing it in an amazing area of Amarillo, high appreciation and rising rents in the area. The biggest downside is the proximity to major streets that may veer potential renters away and the high asking price for the property. With that said there is plenty of work that can be done to this property to immediately increase the price.

Real Estate Tip:

Investment Strategy:

Short-Term Rentals in Emerging Markets
Amarillo’s proximity to popular tourist destinations like Palo Duro Canyon makes it a hotspot for short-term rentals. Properties near attractions or city centers can generate higher income compared to long-term leases.

• Example: A 3-bedroom home could rent for $150/night, generating $4,500/month during peak seasons.

• Pro Tip: Use platforms like Airbnb and VRBO to attract travelers while investing in professional photography to showcase your listing.

Current Interest Rates:

Amarillo, Texas
30-Year Fixed Residential: 7.3%
15-Year Fixed Residential: 6.7%
Commercial Rates: Starting at 6.8%
Interest rates in Amarillo are slightly above the national average. This impacts monthly payments but makes creative financing options, like adjustable-rate mortgages (ARMs), worth considering for the first few years.

Investing in Affordable Housing

Amarillo is becoming a prime location for affordable housing projects due to its low-cost land and increasing demand for budget-friendly rentals. Investors targeting workforce housing can benefit from strong tenant demand while contributing to a vital market need. Moreover, local incentives, such as tax breaks for affordable housing developments, make this a particularly attractive option. By focusing on this niche, investors can expect both financial returns and community impact.

Economic Conditions

The Amarillo economy remains stable, with an unemployment rate of 3.5%, well below the national average. Key industries such as agriculture and meat processing continue to thrive, providing a steady job market. Additionally, Amarillo’s growing healthcare sector contributes to consistent population growth. However, rising construction costs (up 6% YoY) are slowing new housing developments, tightening the supply of affordable homes.

Market Rating: 7.3/10

This market does show upward potential, but the low rents and relatively high prices make it challenging to find cash flowing properties and may not be the best choice for long term rentals. This area would be great for investors looking to fix and flip.

Key Takeaways:

• Market Snapshot: Amarillo’s median home price is $237,000, with 5.2% growth YoY, and inventory down 4.5%.

• Deal of the Day: A $1,025,000 12-plex offering $6,000/month in rental income and an 8.1% cap rate.

• Real Estate Tip: The BRRRR strategy can help you scale your portfolio quickly.

• Investment Strategy: Short-term rentals in Amarillo can earn $4,500/month during peak seasons.

• Interest Rates: Amarillo’s 30-year fixed mortgage rates are at 7.3%, which is above the national average.

• Economic Conditions: Amarillo’s 3.5% unemployment rate and thriving industries make it a stable market for investors.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.