First Project Dallas? Houston? El Paso?

Question

I want to start in the RS business asap. Been investigating about it for a while now. Born in El Paso but lived my whole life in Mexico. The options that I have in mind are El Paso, Dallas and Houston. Type of project: Flipping a Duplex or Cuadruplex 200k-500k. Recommendations? Thanks.

Yasir Einaudi · Answer

Hi @Jaime Camino

My name is Yasir Einaudi. Like you, I have deep roots in Mexico but have made El Paso, TX my home after living in four different countries over the past 18 years. My 8-year journey in the real estate investor sector has been diverse, dabbling in flips, rent and holds, apartment buildings, BRRRRs, STRs, and MTRs.

Regarding your query about starting a flipping project in Texas, I can mostly speak for El Paso. While it’s the most affordable market among your options, it shares similar economic conditions with other Texas cities like Dallas, Houston, Austin, and San Antonio.

It's pivotal to acknowledge the current economic climate. The real estate market is experiencing its lowest sales in recent years, and mortgage applications have plummeted to levels unseen since the 1990s. This downturn, compounded by recession and persistently high-interest rates, is prompting price adjustments across the board. Though construction labor and framing material costs have decreased slightly, most construction materials remain expensive. In El Paso, I’ve noticed flips staying on the market for four or five months, and luxury properties experiencing significant price drops.

Your strategy to invest in duplexes and 4-plexes is sound, but such properties are relatively scarce in El Paso and other Texas cities. With the strong Mexican peso against the US dollar, I’d recommend considering investing in rent and hold properties in any of these markets until the economic situation stabilizes and interest rates fall to more palatable levels, around 5%.

Personally, I’ve pivoted towards employing a BRRRR + MTR + conversion strategy, a niche but highly successful approach in any market.

I'd be delighted to meet up for coffee when you’re in town and delve deeper into these topics.

Warm regards,

Yasir Einaudi
Einaudi Real Estate &

El Paso Furnished Homes

Brian Burds · Answer

Hi!

Congratulations on your decision to start a real estate flipping business! I'm excited to hear that you're considering El Paso as a location.

El Paso is a great city for flipping duplexes and quadplexes in the $200k-$500k price range. Here are a few reasons why:

• Affordable housing prices. The median home price in El Paso is around $230k, which is significantly lower than in Dallas and Houston. This means that you'll be able to find good deals on duplexes and quadplexes that you can flip for a profit.
• High demand for rental housing. El Paso has a growing population and a limited supply of rental housing. This means that there is a strong demand for rental units, and you should be able to rent out your flipped properties quickly and easily.
• Strong job market. El Paso has a strong and diversified economy, with major employers in the healthcare, education, manufacturing, and logistics sectors. This means that there is a large pool of potential tenants who will be able to afford to rent your properties.

If you're serious about flipping duplexes and quadplexes in El Paso, I can offer you the following help:

• I can help you find good deals on properties that are ripe for flipping.
• I can connect you with reputable contractors who can help you with your renovations.
• I can help you market and sell your flipped properties quickly and for top dollar.

I'm also a licensed real estate agent in Texas, so I can help you with all aspects of the buying and selling process.

I'd encourage you to give me a call so that we can discuss your flipping goals in more detail. I'm confident that I can help you achieve success in the El Paso real estate market.

P.S. Here are a few additional tips for flipping duplexes and quadplexes in El Paso:

• Focus on areas with high demand for rental housing. Some popular neighborhoods include Northeast El Paso, Central El Paso, and the West Side.
• Look for properties that need cosmetic updates, such as new paint, flooring, and appliances. These types of renovations are relatively inexpensive and can make a big difference in the value of the property.
• Be sure to budget for unexpected expenses, such as repairs to the roof, HVAC system, or plumbing.
• Work with a reputable real estate agent who can help you price and market your flipped properties.

I hope these tips help you get started on your real estate flipping journey!

Ali Nichols · Answer

@Jaime Camino our team is focused on small multi-family opportunities in Texas and other states as well. If you would like to connect, please let me know.

Jennifer Volek · Answer

I can help if you're interested in the Dallas market. I have done projects in my triplex as well as flipping single family homes.