All Forum Posts by: Daniel Mendez

Good morning BP,

I am currently looking into getting a real estate agent that can assist me in purchasing my first rental property in the DFW area.

What is the best way to go about finding a good real estate agent? Is there a website that tells me too performers?

Good morning BP,

For those of you investing or living in the DFW area, do you guys have any landscape company recommendations?

I am trying to redesign my landscape for a rental property.

Thought I start here and see if any of you had any recommendations.

Good morning BP,

So I will be purchasing my first rental property out here in the Dallas Fort Worth Area.

That being said, I know having an ideal criteria on what type of rental property you are looking to get is fundamental.

For example, a criteria will probably include a certain price range, what type of neighborhood and how much cash flow etc.

I am currently trying to create my search criteria.

What do you guys think I should include in the criteria?

So far I have:

1: purchase price

2: Class type of neighborhood

3: Class type of property

4: The amount of cash flow per unit

5: job growth

6: population growth

7: low crime

Is there anything I should add to my list?

@Anthony R.

Thank you very much! This is really helpful.

2 questions:

What is the formula you use to obtain a price per unit?

Also, based on the example, that the mortgage you pay after refinancing the house will not be greater than $1,100 or $1,200 which is the mortgage you said people were paying?

@Adam Gollatz

So just to make sure before purchasing a property I have to make sure that the average rent is high enough that it will fall under what I am estimating to be the new mortgage payment once I have repaired the house right?

Good afternoon BP,

So i am looking to purchase my first investment property at the end of the year.

I had a question in regards to estimating the mortgage for the investment property.

When calculating on how much cash flow will be do I estimate the mortgage payment to be at what the house is being sold for? Or the ARV of the house?

For example, say I purchase an 80,000 home. The mortgage will be say $800. Rent around the area would run for $1,000 hypothetically speaking. Once I repair the house it is now worth $140,000. I refinance the loan to $140,000. Now my mortgage payment is $1,200. Well now my cash flow will be in the negative. Am I right?

@Steven Hamilton II

I currently live in Texas (Dallas to be exact)

Good evening BP,

Out of curiosity, how much should one save off of the cash flow that one could make off every unit?

For example, say I bought a home and it cash flows $400 a month after all expenses. Am I free to spend that money? Or should I save a portion of that money just in case Uncle Sam’s wants his money when I do my tax returns?

Thank you for the guidance

 Peter,

I am new to real estate education. That being said, what is cap rate? And how would I go about obtaining that number?

 Hey Joshua,

Thanks for your feedback. Those numbers were just hypothetically speaking. My fear is that if I find a property that I estimate a mortgage to be below the average rent and then I refinance it and then the new mortgage comes out to be more than the average rent.