House Hacking In Dallas Fort Worth (DFW)

[Harrison Sharp]

Hi all, 

Been a long time poster on BP, investor, and house hacker in the DFW market for over 5 years now. Also currently an agent that runs a team and have some great house hack agents on that team as well. Wanted to give some advice/feedback of what I've been seeing in the market since rates have gotten up to 8%. 

House hacking still makes a ton of sense here and in my opinion is by far the best way to still enter into the real estate market. Average sales price in DFW has dropped from $490,000 in June of 2022 to $456,000 as of 9/30/2023. Part of this is probably due to the normal seasonal nature of the industry but I'm hoping we get some more relief on prices into 2024 to make things more affordable. Concessions for rate buy downs are becoming more common as well as creative financing strategies like 2 for 1 rate buydowns and subject to. 

Rent by the room especially on houses where you can create and add additional bedrooms for minimal costs still makes sense as well as buying properties with ADU's combining a mix of the rent by the room strategy with an ADU on site. A great example of a this is the property located in White Settlement - https://www.zillow.com/homedetails/126-N-Redford-Ln-White-Se...

The main house is a 3 bed/2 bath, and there is a completely separate guest house/ADU with a full bed and bath. There is also additional space to add another bedroom in both the main house and ADU.

What deals are you guys seeing out there that still are making sense in today's market? 

[Andrew Postell]

@Harrison Sharp thanks for the post. I recently purchased a 4-unit and a duplex off the MLS here in DFW. It was part of a 1031 exchange. In both scenarios I led with maximum seller credits. In that scenario, since it wasn't my primary home, that's 2% seller concessions. Just about every other purchase contract that I see has some type of concessions with it. We aren't getting 1/2 price offers...but sellers are having to incentivize us to buy their properties. If they don't, we'll just go down the street to another property. Again, not crazy discounts but enough to make up for the lack of cashflow in the market.