Newbie Progress In Dallas - 90 Dallas Challenge

[Jerry Thompson]

Hey Fellow BP'ers!

I'm taking this 90 Day Challenge to task (my apt lease is up Jan 4th anyway), and just got my first loan pre-approval letter yesterday. Considering that I didn't realize I needed one until two days ago, I'm stoked! The info here on BP has been so helpful that every time I've wanted to post a question, I find it's already been answered elsewhere. So I thought I'd just share on my progress thus far..

I have an idea of my strategy (house hack with conventional financing), prices, and areas I'm looking for.. and the next step is finding an awesome agent, learning more about specific mortgage options, learning about foreclosures, and deal analysis.

I've been working on my credit score for a few months and it's paying off with these pre-approvals. My debt to income ratio is not the best, however, my current reserves and credit score are allowing me access to loans. The FHA loan was a consideration but I'd feel most comfortable starting with higher equity in the property and don't want that additional insurance for the life of the loan, plus removing the additional evaluation on the property to meet FHA standards should give me a few more options. Having cash or other financing options will definitely be a goal in the future though!

There wasn't much activity on people's progress in the 90D Challenge, so maybe this will help others who may be a little unsure about committing to it. Yes, Dallas is a hot market, and deals are hard to find, but I'm confident I'll find one by January. If not (because no deal is better than a bad one), I will have learned a lot just to get that far in saying "NO" to deals. 

Anyway.. it's been great interacting with the BP community so far, and I'll be sure to share how things progress!

EDIT: Title was crummy "Newbie Progress In Dallas - 90 Day Challenge" but you too can be successful with poor spelling lol

[Shannon Beatty]

Yes, yes, yes! Jerry, my husband and I used this same method when we purchased our first duplex about 4 years ago. I am so excited for you to begin this journey with real estate! I know it will change your life as it has mine and my husbands. 

I am a licensed REALTOR and investor in the Dallas area myself. You're correct in saying its a hot market - BUT people are closing on good deals every day. We just closed on a duplex in downtown McKinney (super hot area if you aren't familiar with it) that was an awesome deal. Thus far, we have two duplexes and two single family properties. All done in the last 4 years in this hot DFW market, so its definitely doable! The first single family I purchased was a foreclosure so I understand what this would entail. I'd love to discuss possibly working together. Feel free to reach out to me if you're interested.

A few thoughts on some of your other points. Starting with higher equity is always a great. I used an FHA loan in order to get my first home, but refinanced to conventional after about two years once we had made improvements to the property. So, if you have to do FHA - refinancing is always an option down the road. Good luck to you!