All Forum Posts by: Bart H.

 Where is it?  at that price point just crossing a highway can make a huge difference?  I will say most everything we see in Dallas sub 200K is really picked over.

is the house you are looking at lower or higher on a $/SqFt basis?  does it have similar numbers of bathrooms and bedrooms?

I would figure out if it has things like tax liens, needs a new roof, needs AC, needs foundation or plumbing repairs. New kitchens or new baths. 

Those kinds of things can run thru a rehab budget in no time at all.

 I dont know your personal situation, but If you are willing to try it, have you thought about buying a duplex/triplex or quad and living in one of the units?  If so I think that is the best way to get started.  And I would do that even if the numbers were ok/not great.

 Here is the thing, I think its always possible to find deals in EVERY market.  If you have a 10 or 15 year timeline, I think now is a good time to invest.

From our perspective we have been consistently doing a few deals a year since 2013.  There are properties we would have jumped on in 2013 that we arent coming close to finding in 2014.

Because my wife and I work regular W-2 jobs, there is no sense of urgency on our part to do a deal just to do a deal.  We have gotten a lot more cautious and we are on the longest period between deals since we started as investors.   I dont think we will get the huge capital appreciation over the next 3-4 years that we got over the last 3-4 years and we dont really want to leverage out to the max.

But if we found a good deal, (likely a value add/BRRR) we would pull the trigger. If we didnt have any deals under our belt, I think we would be more inclined to do one just to get started.

 Guys, I would be interested, because I think there is a HUGE market for small triplex/quads.  Maybe something similar to the Chicago style 3 flats.  or maybe even something where the 2nd and third units were single bedroom add ons for those who want to house hack.

Our investments so far have been in SFR. Cap rates arent really relevant there.

In the SF space out of state investors arent factoring in real estate taxes.  Two examples:

Property 1: Purchase price $180K

Property taxes: 

2014 2,400

2018 7,000

Property 2: Purchase price $235K

Property taxes:

2014 2,400

2018 8,000

Those kinds of increases will eat into most "cap rates", Frankly I am glad that we bought right on those properties and have done well. But the market in DFW is cooling off, someone buying today isnt going to have cash flow, and I dont think they will have much if any ROI. At least not in the next 4-5 years. The more we look at the values in this market, the less I believe its a good place to invest. And imo its definitely a terrible place for out of state and/or brand new investors. (unless you have some sort of other competitive advantage.

 ITs more than that in the DFW market.  There has been a conscientious move by the taxing authorities to push the appraisals.  In many cases to stupid levels.  as an example, we got the privilege this year of writing a $7,500 check to catch up on the escrow reserves (on a property we bought 3 years ago for $180K.)

I also think that the institutional investors and out of state investors have picked over the market.  I am sure those who do really large volumes are still able to find deals that work for them.  

But we are having trouble finding deals that work for us. So while we are looking every day, for the most part we are content to sit on the sidelines.  In fact we might prune a property or two.

I don't know how someone from out of state could buy in the DFW market and make any money today in SFR, at least not in the buy and hold/Flip/Brrr game for 4 units or less.

Maybe in the Ft Worth side of things?  But definitely not on the east side/north side of the metro area.

I will go out on a limb, DFW is no a good market to invest in over the next year or two.

Welcome to $425K.

You can take in your Hud, but really what they are doing is over appraising these properties and forcing home owners to protest to lower the prices. 

 When you are young, I think the absolute best way to start is with a property you plan to use as a house hack.

IMO a house hack gives you the margin to buy an ok deal.  It doesn't have to be a massive home run, just a solid deal if others help pay your mortgage.

 A couple of things, where is your realtor in all of this?

Also you and the seller almost certainly signed a clause in the closing documents stating you would fix errors after the fact.  I would go to my realtor first, title company second.  And if neither of them could get it fixed get an attorney.

Lastly, be careful on the Airbnb plan.  I know the city of Arlington was trying to outlaw Air BnB's.  I don't know if the city ordinance ended up passing or not.

 Dont do it.

What are you getting from them you couldnt get from the forums on Bigger Pockets?

Heck for $25K you would be better off starting with a house hack and learn the business from the ground up.

Find a realtor who works with investors, go to some meetups.  Get to know people who are into real estate.

Personally I think you are MUCH better off having a realtor or a good long time local investor who you could offer to help out with some labor in exchange for showing you the ropes.

and a share agreement for the first 500K?  thats insanity imo.  Sounds like a borderline scam.

Find a good deal and partner with someone.  

I think there are a couple of high priced groups that might be worthwhile.  (there is one in Dallas I am thinking of in particular), but really I think even you would be better off getting some experience and then look to one of those groups when you move into multi family investing and have some money to invest.