All Forum Posts by: Alpesh Pandya

(Suddenly the @ function for names is not working)

What you're using for your expenses will play a big factor in whether or not you can find deal that meet your criteria. Depending on where you are investing in DFW, you may be very safe in lowering your Vacancy Reserves. Also, if you invest in the property upfront, basically taking care of the things likely to become an issue in the next 3 - 5 years, you can significantly reduce your monthly CapEx reserves. Being realistic about these items will definitely help your cash flow.

However, I strongly recommend, particularly in the current market here in DFW, you stop worrying about 1% or 2% of any of the other "rules".  Those are all great theories, and in some markets they probably make perfect sense and produce the same results as looking at the investment from this perspective...

• What is the minimum monthly cash flow per door you're willing to accept?

As long as a property meets that criteria, what difference does it make what "rule" it conforms to?  It don't think it matters at all.

Now, with that said...lack of inventory + high demand + property taxes = cash flow that is very difficult to find on listed deals, in areas of moderate to high desirability. Difficult, but not impossible. Here are a few (not all) areas where cash flow is still possible on the MLS...

• Little Elm
• Rowlette
• Forney
• Red Oak
• Grand Prairie (north of 303)
• Mansfield (various pockets)
• Arlington (various pockets)
• Duncanville
• Lancaster
• Balch Springs
• Pleasant Grove
• White Settlement
• Saginaw

Some of those areas are more desirable than others.  Some have better quality schools than others, but there are properties that will cash flow, at some level, that list in those areas.

As for realtors, yes...you can work with multiple agents, as long as you don't sign an exclusive right to represent buyer's agreement with any of them.

My advice, narrow down your focus around the properties you are looking for...size, configuration, max purchase price, max rehab budget.  Determine what your minimum monthly cash flow is.  Give your realtor the exact specs on the type of properties you are looking for.  Let them do their search thing.  All you have to do is plug the numbers into the Buy & Hold analyzer here on BP or create your own in a spread sheet.  Just be ready to move quickly, because it's a hot market.

@ Alpesh Pandya

A couple of thoughts on locating investment properties:

• Join a local REIA. There are a couple around Plano. If you need some ideas send me a note and I can tell you about the ones I have found and am involved in.
• Go to the website dfwrealestate.com and do a search on single family homes and any other criteria you have. You will be able to see where homes throughout the Metroplex meeting your criteria are being sold and drill down to specific areas of interest.
• Work with investor friendly Realtors around the Metroplex. Some of these will have hip pocket deals that never make it to the MLS so it is worth calling around (especially in the market North Texas is currently experiencing).

Good Luck!

@ Alpesh Pandya

A couple of thoughts on locating investment properties:

• Join a local REIA. There are a couple around Plano. If you need some ideas send me a note and I can tell you about the ones I have found and am involved in.
• Go to the website dfwrealestate.com and do a search on single family homes and any other criteria you have. You will be able to see where homes throughout the Metroplex meeting your criteria are being sold and drill down to specific areas of interest.
• Work with investor friendly Realtors around the Metroplex. Some of these will have hip pocket deals that never make it to the MLS so it is worth calling around (especially in the market North Texas is currently experiencing).

Good Luck!

MLS is not bad in this area for 1% rentals. I was looking at some properties today, seeing how they would work as cash-flow rentals, and how they fit the 50%, 1%, 1.5%, 2% "rules" we talk about.

I find in the DFW area, that 1% is pretty easily attainable, 1.5% is where you know you're getting a pretty good deal, and 2% means you're in the ghetto or you got an awesome deal.  I'm exaggerating, but close.  

Also look at your expenses! My husband and I don't look at the 1% but the cash on cash return. we personally try to stay above 10% earning not including principle pay down :) since we are very right with our properties and self manage it's about .7% but works great for us! 

Good luck

First do market analysis on many areas.  Don't focus on areas close to you simply because they are close to you.  For me, this isn't on the the 10 list of "how to find a market".  Since it sounds like you are going to need to invest in a market that isn't close to you, you need to find a property manager too. 

You don't pick the market, the market picks you.