Former PGA Club Professional looking to buy first property

[Young Lee]

Hello everyone!

Former PGA Club Professional turned tech salesperson here. I recently moved from Michigan to the McKinney area, looking to do the the good ole househacking that everyone is sick of hearing all the time. 

Been able to put myself in a position financially but more importantly, timewise where I can pursue time to actually buy up property and start to scale. I have been stuck in the analysis paralysis for the last two years and will be looking at giving myself the next 6 months to buy a multifamily unit near the DFW area, but flexible on the location.

I understand that the DFW in terms of multifamily is the not the easiest to find but am willing to put in the time and work to find the right property to get started. As for now, evaluated many options but am more than likely going the FHA route to get a property that is good-boned but in need of renovating in hopes to cashflow a few hundred a month after all expenses.

Sincerely am grateful for all the amazing people on this platform and would love any advice on understanding the market here in Texas, property management companies, contractors, tax laws, LLCs, etc. 

P.S. Open to playing a round of golf or two so don't be afraid to ask!

[Young Lee]

Quote from @Bruce Lynn:

Congratulations...sounds like a great move.

Set yourself up to go conventional though. Very tough if not impossible to use FHA right now.

Way too many investors chasing multi in DFW right now....and lots of cash offers.

I often see stats of 30% of the offers in DFW are cash.  Probably higher than that on multi/investment type properties.

You might even want to get set up with someone like Ribbon or Homeward so you can make cash offers yourself.  

It's an extra 2% charge to you, but will help you to compete with cash players.

I would not count on cash flow on something with minimal down.   Cash flow is a function of how much you put down.  Most of what we see on the duplex side is probably going to need 30-35% to break even year one.   Most investors it seems in DFW are probably looking at cash flow for year 3-4 now.   Rents are going up, but probably not as fast as the sales prices...so there's a gap in there.

If you can get outside the metroplex a bit, like Sherman, Denison, Howe, Van Alystene, Whitesboro the numbers will probably look a bit better.

 Thanks for the insight Bruce. Definitely understand the competitive nature around the DFW and am willing to roll the dice with areas outside of the DFW if better deals are available. Definitely in for a long run investment so my priority is with finding a property that can cashflow. 

Definitely don't want to overleverage but those cities that you had mention, would I be able to get away with putting minimal down even it's a conventional loan at a lower rate?