All Forum Posts by: Aaron F.

@Chaithra Kumar it seems like a lot of the houses in Dallas proper have ADUs so even though they're SFR there's still a house-hacking opportunity that might fit your family. If that interests you it would broaden your search beyond multifamily. I don't know the dallas regulations regarding renting those though.

This is something I've wondered about for a long time: how do you comp homes in nice areas but on a busy road to accurately estimate ARV?

If I were looking to purchase a home and my price range was >$500,000 I’d have a decent number of nice options in quiet neighborhoods. So I imagine that it’s hard to have true “comparable listings” from the perspective of the buyer. Everyone knows to discount the house for being on a busy road but it seems like total guessing as to how much until this happens when you keep dropping the price until it sells.

I know that area pretty well because I used to go to the YMCA there. It’s a really nice neighborhood so hopefully you sell it soon. It looks like somebody will be getting a beautiful home.

Could somebody explain the refi process in a live-in flip? If you buy a house with a conventional loan and then use a personal loan or private money for the renovation costs, can you then do a cash-out refinance to consolidate debt (pay off the original mortgage and whatever debt was accrued for the renovations)? At that point, you would have a conventional mortgage until you move out. 

I guess I’m wondering about how that works and how people approach it. If the original conventional loan has a low rate, would you get a home equity loan instead to just pay off any high interest debt obtained for the renovations or is it better to get a cash-out refinance? I realize this is all dependent on the numbers so I don’t expect a definitive answer, I’m just wondering what others have done.

Thanks!

My wife and I are looking to purchase a personal property in Dallas, and Winnetka Heights is one of the areas we're interested in. We talk a lot about the exact issues you mentioned: the prices are really high all over Oak Cliff and although the area is improving, the prices appear to reflect an ALREADY improved area. It's like what you're seeing in the examples above where the sale price of a fixer-upper is its ARV, so it's like the renovation costs are ignored. Within Oak Cliff there's a lot of variability though.