All Forum Posts by: Duy Xuan Do

Hey @Duy Xuan Do,

Plan sounds solid! I recommend checking with an investor-friendly lender that you won't issues with obtaining a loan on your 3rd and 4th purchase because your DTI (debt-to-income) ratio may become too high.

Another example of the importance of understanding Property Classes and market geographics!

@Duy Xuan Do

Your plan to invest in Dallas, TX duplexes involves selling your house, saving, acquiring a property, and acquiring four duplexes for $400,000, with the remaining cash being $60,000. Your key considerations include loan approval, property management, market research, legal ownership, tax implications, and an emergency fund. Consult a knowledgeable agent, seek professional advice, and have a flexible plan.

Good luck!

 Thanks for the shout @Denver McClure! @Duy Xuan Do, your logic makes sense on the house hacking front, but I would really encourage you to explore other types of rental strategies, such as mid term renting or rent by the room. You'll be able to get properties in better areas and also have better cashflow. For example, the duplex you mentioned in Fort Worth is in a pretty rough area, and you'd only be getting $1750 per side which isn't going to approach the 1% rule. Where as you could buy a nice 3/2 in Carrollton for the same price, be in an awesome area, and rent out the whole house for $5200 as a mid term rental.

Reach out anytime if you want to talk shop.

Hey @Duy Xuan Do, I own several duplexes in Dallas, and I can tell you that you won't find too many at the $450K price range. If you do, they will most likely need a fair amount of work. As for your plan to snag 4 in one year, that just comes down to your finances at that point and the interest rate. I'd recommend speaking with a fellow househacker like @Matt Solis.

@Duy Xuan Do   I like your plan.   Seems doable and realistic.  Everyone plans to continue working?

It's a little tough to know where pricing and interest rates will be in 3 years, but that's out of our control.  Overall I think it is a good gameplan.

One other option you might consider to scale faster perhaps is to buy the 1st two as owner occupied.  Wait a year and move and buy #3 and #4 as owner occupied, move a 3rd time in year 3 with #5 and #6 as owner occupied.   Conserve your cash.   Probably not as easy as that as you still need some income to support some of the properties perhaps, but something to consider.

It takes a special wife to be able to move often.  One of my mentors moved something like 25 times in 23 years, to build part of his empire.  All in the same little town, sometimes next door.  I can think of 4-5 houses he lived in on the same street within a block of each other.   Small pain for long term gain though.

Make sure you check out the area and the costs of the duplexes. I'm guessing that you wouldn't want to live where some of them are. They exist here but they are not as plenty for a single family homes. Once you check out ones you like in the areas you will live in then you can check your numbers for accuracy. Good luck! Rob