Looking for REI help in Dallas area

[Brad Parker]

HI, I am new to the REI arena. I have been trying for some time to get started with REI but not sure how/when to jump in. I have a few agent friends in DFW that I have talked with about finding good properties for rental, but after running the numbers, its a break even scenario at best. I just dont see the benefit in buying a property for long term gain. In my opinion that is no different than playing the stock market, which most of my investments currently occupy. I am looking to get educated on finding ways to produce positive monthly cash flow. I am in a good spot where I have a good amount capital to work with and also excellent credit. I just need some good guidance. Any help from knowledgeable people here would be greatly appreciated. Thanks in advance!

[Andrew Postell]

@Brad Parker yes, it certainly depends on your purchase price and how much your investment (aka downpayment + closing costs) will be. And that's why most investors use the formula of purchase price + repairs < 70% ARV. What I mean is that if a property sells for $50,000, needs $25,000 in repairs and the After Repair Value is $100,000 then many investors would consider this a borderline deal and many would not buy it...or at least seek a lower purchase price. Let me reiterate this, buying a home at $75,000 that's worth $100,000 is a borderline deal for many investors. So if you are talking to realtors, who sell homes AT MARKET VALUE then you are starting behind from the first day you own that property. Not only are you buying a home a full price but you also have to pay closing costs (in theory). So you are really buying a property ABOVE market value if you pay full price. The key is finding a home that is significantly below market value and the math will then be significantly better. Hope this helps!