1st Multifamily (4plexes) Dallas Fort Worth, TX Team

[William Leininger]

Hello~

My wife and I are looking to work with others to make a team for multifamily (specifically 4plexes later to be apartments etc) as we are moving from Vancouver, Washington to Dallas-Fort Worth, Texas. My wife is a Registered Nurse & I'm an IT Engineer. We've got two other houses (a single family & a duplex) that we rent through property management so we know enough that we want to grow & expand while also humbly not knowing nearly enough. 

Our first step is buying a Fouplex then continuing to expand once we've moved. For our team we're looking for people that are investors themselves (love BiggerPockets part of why we're here). We're also looking from this team to do much more real estate investing after my wife & I have relocated.

1. Real Estate Broker/Deal Finder - Help us vet it's a good deal or not (we're new to DFW & Texas as a whole so there's a lot of differences in laws to house build codes, etc)
2. Lender
3. Property Manager (we'd love to expand our skillset to one day manage some of our own rental (2-4 unit plexes) & have property managers on apartment complexes we get into next)
4. Contractor/Rehabber We're not looking to overwhelm anyone's contractor referral/you become so busy that anything existing customer wise changes. We're talking if it's beyond our skillset. We're very much elbow grease & hard work ourselves; however, there's certainly things we don't know about and/or again the changes to another state's building codes etc. For example we did our own work converting the Duplex from junky backyard to a nice fenced (separate area per unit) to barefoot backyard, storage unit space, removing old 70's 6in concrete pad for vehicle parking, etc for a nice value add to renters).

Some of what we're looking for in our first Texas real estate purchase & relocation (house hacking as we'll live in one of the 4 units) investment. We similarly want to help others & our teammates for their investments, need an RN for a community service event, need some IT/Managed Service Provider esque assistance in your own business or even looking to invest in Washington state we can help.

1. 1.) A fourplex in a B class investment 
   1. (we're flexible - if it has to be an A class investment to get a garage for at least wife's vehicle - still want to understand how to protect the work rig truck from huge damaging hail)
      1. Attached garage (we've come to understand hail is a huge thing there & we want to protect our vehicles. ie Have an '08 Dodge 3500 6.7L Diesel & a Honda CRV)
2. 2.) $100/month/unit profit after everything
3. 3.) Value Add opportunities
   1. To rehab or to add something to the 4plex beyond just raising rent to market

We're super excited for meeting new teammates & investors & growing together.

[Bruce Lynn]

@William Leininger   Welcome to DFW.  Very nice goals, but probably all will be very very tough to accomplish.  

#1 we don't have a lot of fourplexes....there are some...and some 2-3-4, but not a lot.

#2 I'm scratching my head trying to think if I've ever seen a 4plex with a garage.....I probably have, but those are very very few and far between.   You can find some duplexes with garages.

#3  Price vs Rent and cash flow might be tough in today's environment.  Lots of cash around, very few properties.  I would not county on living for free and cash flow.  If you contributing the normal rent...$1000-$1200 with the other 3 providing the extra $100, that might be possible....but finding one where only 3 cover all expenses and cash flow and you live for free in #4 is likely very very tough.

#4  I will say many of the 4plexes are value add opportunities.  Many owners never do any or minimal upgrades, so often there is plenty of work to do to improve.  That doesn't mean they sell at a discount....they still seem to sell at very healthy prices, but may give you the opportunity as you have turnover to improve units and increase rents.

Not here to give you negative outlook, but the reality is often very different than what you hear on podcasts.   I feel like most of the information people hear about on the podcasts is from 20 years ago...but often not reality in today's market.   Not impossible perhaps to find what you're looking for, but you have to bring your A game, spend lots of time looking for the right opportunity, be flexible on where you want to live and what you buy, and bring your A+ game to bidding.   Chances are you will feel like you are overpaying....of course had that same conversation with an investor today where he said he was so scared when he bought the first one...and looking back 10 years wished he had bought every house in the neighborhood.   Rents have come up very quickly in his neighborhood.  House is paid off now...and he is banking some very nice money on that first rental.