All Forum Posts by: Greg Farmer

Hey y'all, I am brand new to Bigger Pockets. I recently got into the podcast, and that's how I found out about the forums! Here are some fun facts about me:

- Live in Dallas TX

- Own three condos here in Dallas (renting out two and house hacking on the one I live in)

- I am interested in ways to grow my cash flow and possibly even try flipping in the future.

- I love traveling and getting outdoors. 

- My interest in real estate is as a way to eventually be my own "boss" and rely less on a paycheck from "The Man". I also just find it a lot of fun. Even going to my rentals to perform minor maintenance is exciting for me. Although, maybe that's just because I'm still new! 

Up until this point, I've been kind of guessing what to do in real estate. I definitely read a lot and ask a lot of questions of my Realtor, Lenders, and etc, but I haven't really gotten a "formal education" like what I see Bigger Pockets has to offer. As a result, I have probably made a ton of mistakes, and I may not be managing things the best way I could be... But still, here I am, stoked to be here, and excited to learn more! 

My current real estate situation:

- My girlfriend and I live in a 2 bed 2.5 bath condo, and we rent out the 2nd bed/bath on Airbnb. We are soon moving out and flipping the entire place to a furnished mid term / corporate style rental. We may do some STR, but it's a bit grey how our HOA feels on that. Corp rental is probably a safer bet, because the HOA has defined rules for it, and we will (conservatively) cash flow $500-700/month.

- I have another rental condo (3 bed 2 bath) that I used to live in before. It is currently rented to SMU graduate students, and it's cash flowing about $100/month. Sometimes I get down thinking that's not great cash flow, but I also got it with 3% down (Home Ready mortgage), and it was my first foray into real estate. Building equity for close to "free" ain't bad even if it cash flowed zero! This will be tidied up (paint, minor cosmetic work) and furnished when the current tenants leave. I am conservatively estimating a cash flow of $500-600/month as a corp/mid term furnished rental. 

- I have one other rental that I bought in partnership with a Family member (1 bed 1 bath). It is being run as a furnished corporate rental and is cash flowing $500-$600 currently. This one, we just closed on 2 months ago, so I'm confident I can work that cash flow up a bit higher. My Family member is keeping a high % of the cash flow (they put up all the cash to close and furnish it), and I'm managing the place. I also have the place in my name, so once again, I'm building some equity with no up front cash investment and keeping a little bit of the cash flow.

For the future, I'm not 100% sure which direction to take, and I'd love to hear from y'all on what you think of my situation and some possible options on where to go. I don't have any cash I feel comfortable putting into a deal at this time (also don't have another Family member who can!), so I am in saving mode. I'm also interested in learning more about things like Hard Money, Private Lenders, and The BRRRR Strategy.

If anyone is based here in the greater DFW area and wants to grab coffee or a drink sometime, hit me up! My day job is part work from home, so I'm pretty flexible.

Looking forward to meeting and learning from more of you!

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $163,000
Cash invested: $8,000

I originally bought this home as an owner-occupy with a "Home Ready" mortage which allows 3% down. I believe all-in with closing costs (seller covered some of mine), I put about $8K in at closing. I lived there for a year, house hacked for 6 months of that year with a roommate, and did some minor cosmetic work myself. I also converted it from a 2 bed 2 bath, to a 3 bed 2 bath. It now cash flows modestly at about $100/month. I am planning on painting it more modern colors, furnishing it, and marketing it as a corporate rental or month to month furnisehd rental once the current tenants leave. I'm planning to put about $5K into it at that time with painting, minor touch ups, and furniture, and start cash flowing $500-700 per month (very conservative estimate).

What made you interested in investing in this type of deal?

I was brand new to real estate, and I originally just wanted something in a cool neighborhood that I could afford. My Realtor encouraged me to get something that was also "rentable", and he even recommended house hacking with a roommate. That's what I did, and I've been hooked on real estate since!

How did you find this deal and how did you negotiate it?

I found it listed on Zillow. My Realtor handled all negotiations, and I followed his advice since I was brand new. My Realtor was able to get them to put $3K towards closing, since they weren't interested in lowering the price much, and I needed all the help I could get with cash to close.

How did you finance this deal?

Home Ready mortgage - 3% down.

How did you add value to the deal?

I did minor cosmetic updates to both bathrooms, and I converted a second living room into a 3rd bedroom.

What was the outcome?

Currently, I am renting to Southern Methodist University Gradute students. Cash flow - $100/month.

Lessons learned? Challenges?

Real estate can be fun! Don't sweat the small stuff in deals and don't stress too much about the negotiation process. Also, find a local lender. My lender was remote, and I received absolutely horrible service. My Realtor basically saved the day a couple times when closing kept getting pushed back due to simple errors in paperwork by the lender.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

A Realtor named Blake Phillips in Dallas TX - Great guy! I recommend!