New Member form Dallas

[Bart H.]

Hello all.

Thanks for letting me be a small part of this great Bigger pockets community.

My wife (who is also a new BP member) and I have been investing in Dallas real estate since June of 2013.

So far we have gone slowly mainly by house hacking in Dallas neighborhoods that typically appeal to young professionals.

Since June of '13 we have done 4 deals:

1)Bought (Jun'13 and then later sold Jun'15) a duplex that we lived in. 

 2)Bought (Aug'14) a 3/3 single family house that we lived in and now have as a rental.

3)Bought (Nov'15) a FSBO 4/3 SFH (zoned MF) house. We currently live in this house and hopefully will turn it into a rental.

4)In Jul'15 we bought our first first rehab project and now have it listed on MLS.

So far our deals have mostly come off of MLS, and the strong Dallas market has been a big help. My sense is the market may be slowing slightly and we will need to be a lot more discriminating when looking for future deals.

Going forward, I think we will focus more on buying wholesale properties, to flip and/or perhaps do the 'Brrr' method', ie buy, rehab, rent repeat, where it makes sense.

Short term goal I would like us to do at least 2 flips, and add another rental in 2017.  Medium term we would like to have enough success to quit my day job and go into real estate investing full time.  Long term we would like to have a real estate portfolio in retirement that would support $7K-$10K/month in free cash flow.

Our risk philosophy is that we want to do deals when they provide a reasonable upside in both cash flow and capital appreciation. We try to take measured steps with moderate leverage, and we like investments where there are multiple shots on goal. Ie multiple ways to make money (or get out of projects). And we are willing to give up a little in ROI in exchange for better tenants/properties etc.

From Bigger Pockets, I would like to continue learning (I listen to the podcasts) from the wealth of information contained in the community, and hopefully we can contribute by offering our perspective as new investors/flippers.

Thanks for reading.

-Bart

 

[Michael Lee]

Hello and welcome to BP! I have heard more than once to avoid buying single family homes because of vacancy and the MLS as a rental unit information because most of it is sold retail. But,if it works for you, it works for you. If they are successful for you to purchase that is all that counts. If you are satisfied with its return, that is all that matters. The Dallas area should have plenty of opportunities when you consider the suburban cities that are included and the diversification it has. I have lived around it for 60 years and it has never really slowed down. There always seems to have demands that prove beneficial. It has enough stability to make it a good place to be.

I would recommend small apartment complexes that have been well kept up and do not have any capital expenses.  Many of the times they are owned by elderly couples and motivated people and get you where you want to be sooner.  Just make sure as best as you can that it is in a good location in a high demand area.  Unfortunately, I had a brain anuerism and a stroke several years ago or I would probably be doing real estate investing right now.  It just proves that the future is uncertain.  I have never had any other problems but I can not walk right now but I am still getting slowly better.

What you have done proves that there are opportunities out there and that "house hacking" works for some willing to do that. That and the BRRRR method can work for you. Lending is trying to be more beneficial to people like you and me but most of them cost a bit of money. I hope you have formed an entity that protects you and your wife. Many folks still believe in SFH and buy them as a liability even though they are treated like an asset. Rental properties are considered good debt because they typically put money in your pocket and usuall turn out being a good investment.

Good luck to both of y'all!