First Duplex deal in Dallas TX

[Sally Peltz]

I am new to Real Estate but have a financial analyst background. Real Estate is my second career. The duplex I found and like is in this great area in Dallas next to everything and in a great neighborhood. However, my cash flow after taxes, expenses, and debt service is $700 per month on a $500,000 duplex with garage apartment. Based on what I read on this blog, others are getting this type of cash flow on a smaller investment of $300,000. This is my first investment property but when I look at cheaper properties, I don't get the rental income to sustain all the expenses. It's slim pickings on properties for sale.

[Andrew Herrig]

I agree that $700 cash flow per month from a $500k duplex doesn't seem like a good deal. What are your goals in your investments? If you are looking for low risk and low return, basically a place to park excess cash, perhaps a $500k duplex in a high end neighborhood makes sense. But there are much better returns out there.

I have a duplex that I bought for around $150k that cash flows around $700 per month. It is in a solid blue collar neighborhood. These are where some of the better deals are.

Where are you looking for your deals? The MLS is very slim pickings these days.