All Forum Posts by: Don Van Nguyen

@Matt C. Much appreciated for the input fellow Wylie resident! Great city to be in. Agreed it seems like Wylie hit the point of expansion just like Sachse was a few years ago and it is spreading. I'm a bit more cautious of looking that far out with Blue Ridge, Ana, and etc. The main reason is in case of another recession, how are you protected? Small cities with less corporate companies and other economic driven factors pulling it, it'll be the first to fall. Trust me I'm all about going out of the core Dallas a bit more but afraid it won't be as recession-proof as core Dallas or surrounding areas. 

I am definitely interested more in turnkey properties as unfortunately, I don't have much value add at this point. I don't have any construction experience, contacts, or do not want a high-risk flip house type of house just yet until I feel a lot more comfortable. I understand about the $200k, it was actually the highest end of my range and I'm really targeting the $100k-$170k range but it is still hard to find a decent deal in that range.

Wylie expansion wise, oh you know the mess they are going with at the moment. Highway expansion is key but a lot of pushback so it'll be quite crowded in a few years! Thank you again for the great input and appreciated it.

@Andrew Herrig Definitely cash flow will suffer to the property management and have heard of plenty of services or tools to help with the property management piece. Only problem is the full-time job and not having a good solid list of contacts for contractors which I know is important to maximize the cash flow. I'm worried to head out that far for Royse City and a few other areas you mentioned. Would you be worried in a recession period those cities would get hit first? I would definitely love to get properties outside the core of DFW but worried to go too far in case of the need to protect myself from a recession again.

@Dennis M. Wise words and appreciate the candid comments. Very true B class neighborhood can possibly go negative quickly to any heavy maintenance issues. Thank again, I do want to do it all myself but full time job prevents it from doing so but I'll take a look at it again.

@Tyler Hodgson thank you for the input! Definitely targeting the B class neighborhood and single family home to make it a bit more simple. It is rough as I want to self-manage it myself but having a full time it is going to be rough. Definitely doable as I am willing to work early morning and evening and weekends to get it going.  I'm still 50/50 on the idea of property management or self-manage, much appreciated for your connection too! Hope to get some info from Kenneth!

@Peter M. Appreciate the response! I definitely do not plan to ask, bug, or shadow the PM throughout the process. I will mostly observe and learn everything on my own in parallel through the usual resources (podcast, biggerpockets, etc.).

Great to another fellow O&G engineer. We can always meet somewhere in the Plano or FW after work. Thanks again!

@Rachel H. Great point!  I consider DFW one city and Houston is another great option. Two big cities, but you should have saw my list city of interest before :).

Alright, first real post so go hard on me and looking for your expert opinion to punch holes in this strategy. A quick summary of myself, I'm a new investor and been in the O&G corporate world all of my life (10-year career). It is great but overall not the way I want to retire. I have been reading books, articles, hundred plus hours of podcast, and just everything I get my hands on at the moment to learn as much as I can before taking the leap. However, the simple advice of just getting in the door with the first purchase is the biggest step I can take and ready for it. I developed a short term and long term strategy below and hoping to get some input! I have an Engineering background and tend to be detailed and number oriented thus apologize for the long rant. Thank you in advance for all the help! And please go hard on me and critique it as much as possible!

Financial requirement and goal. 

Currently, I am approved for financing up to $200k, can do a 20% down payment, conventional loan, and looking to start out with a starter investor home in the Dallas / DFW / Houston areas. I am looking to purchase 1-2 houses for the first year to get my feet wet, learn the ropes by hiring a property management (they can run my rental properly and I learn the process along the way) and okay with losing some cash flow along the way as the education will be invaluable. Within a min 1 year time, I hope to fully understand how to properly run a property and can take over full time. I will start to ramp up purchases of houses with an additional 3-5 within the 2-year term and 5-10 in a 2-10 year term. 

Target, of course, is to replace my current corporate job but I am hoping that'll be just the beginning of my real estate goals! I want to target 10% Estimated Annual Gross ROI but with the hot market in Texas okay with the 6%-10% ROI. I take into account HOA, property tax, vacancy rates, maintenance reserves, P&I, and property management fees in my ROI.

Type of Property. 

For the first few properties, I am starting simple with the least possible headaches as possible. I am looking at the first 1-2 houses to be single family homes with 3 bedrooms and 2 bathroom type houses. Targeting houses 1995 and younger. Schools with rating grade of 6-10 on Trulia.  Low to little crime heat map from Trulia. A house which can potentially appreciate but not as critical as I am liking more of a recession almost proof type area and property. Targeting B class type neighborhoods and up!

Location. 

I am liking most of the Dallas, Houston, and Fort  Worth areas as I know these the market the best. I lived in Houston for 8 years and now DFW for 2 years to understand the various dynamics of each one. Houston has a great robust economy with O&G, technology, finance, and retail but battered with the potential of natural disaster (mainly hurricanes) every few years (I been through a few hurricanes). Dallas has a great mix of technology, manufacturing, finance, and some O&G where it looks like a great recession almost proof house. Dallas has a lot of hail and crazy tornados which hit every few years too.

Handle needs of the rental property. 

For the first year or so and probably the first two properties, I will hire a property manager. Take a hit on cash flow but at least it is professionally run with ease and I get to learn as much as possible. I hope after the first two properties, I can take over the next one while working and then go full-time years later for properties 3-10!

Work with a realtor.

Currently looking for a friendly real estate agent! Hard to find these days. Let's just say the house I purchased, I did hours of research, choose the properties to look for, did the negotiations, never received quick replies, and overall did most of the work. The real estate agent I had just showed up and basically collected the check. I found the house we are located in so I do not want to repeat this same mistake. I have been talking to and working with turnkey investors and a few other options but nothing has turned up like a great deal yet.

THANKS AGAIN!

@Thurman Schweitzer Fort Worth is a great option. I actually went and checked out a house today after work in Fort Worth. It was nestled in between the Lockheed Martin and close to the Samson Park. I was told to stay away from Samson park. Do you know of the revitalizing the Stockyards and what some of the possible developments going on? A realtor was telling me about it and thought it was interesting. 

@Ellis Hammond thank you for the warm welcome and wishes! I have a long road ahead of me but ready for it. Duplex does sound like a great idea, however, I'm thinking to target small like a single family home then head to the duplex and multi duplex. Looking to get my feet wet a bit but definitely open to any ideas or possible opportunities!

@Lane Kawaoka Thank you! Pick my brain anytime, I worked in the EPC, drilling, midstream, and downstream part of the industry throughout my career. Well for me I'm just looking for passive rental income mainly targeting Texas but open to any idea!