deal review Anna TX

[Zachary Grotovsky]

I’ve been looking for my first rental and have looked at 40-50 places and none of them cash flow. Found a place in Anna TX which seems to have a bright growth future - north of Dallas. It’s in good shape and I could get it to cash flow by about 50 bucks per month - taking into consideration only mortgage, insurance, and property tax. (I know I know - this is not the proper cash flow equation because it doesn't take into account vacancy, maintenance and capex) This cash flow does not take vacancy and maintenance into consideration, so that’s the risk. I know if maintenance were to come up it would be out of pocket. This is still the best deal I’ve found so far. Would I be crazy for going through or is it reasonable?

Happy to add more details as requested. It’s a 3/2.5 2200 square feet with two flex areas.

[Bruce Lynn]

Most of what I see in North Texas in decent areas like Anna will need about 30-40% down to break even or cash flow some.

To me it is big for a rental, especially in Anna.  I don't think the flex spaces necessarily get you more rent.  I'd try to stay to the smaller homes somewhere in the range of 1500sqft or less.  Of course it always depends on the price you pay.

I would also look at Sherman and maybe Commerce.

[Lucia Rushton]

@Zachary Grotovsky what do you mean flex areas ? What's the purchase price and rental comps ? Is there an HOA ? What's the age ?

[Jennifer Volek]

Long term rentals are tough but maybe you could try looking into STR. I do STR in Arlington and make 2x what I would have made as a regular rental.

[Zachary Grotovsky]

Quote from @Lucia Rushton:

@Zachary Grotovsky what do you mean flex areas ? What's the purchase price and rental comps ? Is there an HOA ? What's the age ?

 One of them can either be a second living room or could be a home office, another could be a dining room or could be an office, or used for something else.