All Forum Posts by: Haley Powell

@Harrison Sharp

Hey Harrison!

Thank you so much for your reply!

I am inclined towards your perspective, though my realtor really wants to get me out to lay eyes on properties in person. Maybe I will feel differently when I experience them in person, I’m willing to trust her and at least go look.

I think I could pony up and tough it out in a less desirable area if I had a feeling the neighborhood was “coming up”, but I’m not sure South Dallas is or how long of a game it is, so I think that’s why it feels like gambling.

I lived in Oak Lawn for 6 months while I interned in Dallas, and I liked the neighborhood and it feels like a much safer (and pricier) bet bc it’s already proved itself and established. With that said, there are few “bargains” to be found bc it’s a well known and high demand area😂

I am 24 years old and have recently graduated with my master’s degree (read: not rich). I have a job secured in Dallas that pays $50k pre-tax, and I’ve been pre-approved for up to $211,000. I’ve been listening to BP podcasts (mainly the Money podcast, more recently the Rookie podcast) for a while and I really want to buy a place that I can eventually convert into a long term rental. I think of it as a partial househack as I’m not sure I can live completely for free with the real estate rates in DFW. What complicates this is that I will be working in downtown Dallas, which makes anything nearby rather pricey.

I’ve found a real estate agent that is well versed in real estate investing (which is a relief) and I’m now in the early stages of looking for a property.

She's sent me a list of properties within my price range ($150k at max) but they are all houses. Her take on this is that HOA's eat into profit margins and make it hard to make money renting, which is a fair point. My parents' concern (and I share some of these) is that any house I get in Dallas for $150k will likely be either in poor shape or in a poor location, either of which I will ultimately pay for (either in lower rent, poor tenant choices, or in renovations). They think that if I can find a cheaper condo in a nicer/safer, more centrally located area, I can command the rent to cover HOA's.

I don't mind buying in South Dallas or some other areas if I feel safe (I'll be a single woman, living alone, I've had run ins before) and I think my investment will at least hold its value. I worry that I won't be able to meet the 1% rule in that area at $150k, but if I lower my price range I may get into a rehab I can't handle yet (and I'd be competing w flippers). A condo would be closer to everything and would have built in location value but the negative of monthly HOA dues.

I see both points of view and I’m struggling to narrow my focus onto one or the other, which is in turn making things more complicated for my agent. What are your experiences with condos and houses in Dallas? What might you recommend as a starting point for a new investor? I’m open to learn and I’m eager to hear different perspectives.

Hi Antonio! I can't give any recommendations, but whoever you go with, I'd suggest making sure they are ready, willing, and able to sanitize just about anything in your units. With the virus around I'd imagine that people will be wary of Airbnb's due to variations in cleanliness and veer towards conventional hotels. If you can make assurances about the thoroughness of the cleaning to potential guests, you might find people are more willing to book with you over someone else. Best of luck!

Hey Justin! It's awesome that you have such a clear goal of where you want to be and are on your way to getting there! If you are looking to househack in Dallas you will need to really narrow down what you are looking for and where. It's really competitive market and you need to have your ducks in a row to move on something when you've found it. I'm also looking to get a househack in Dallas, as are most people in a small BP group I've put together, it's tough going because we are all competing not only against each other, but seasoned investors with networks in place. If you have the luxury of being able to work from anywhere (I work downtown, unfortunately) you should check into the surrounding suburbs of Dallas, I've heard it's easier to find workable deals there. Arlington, Grand Prairie, McKinney, Frisco, Irving, and Garland have all come up on the forums and it may be worthwhile to check into them and sidestep the feeding frenzy in Dallas proper until you have an established system in place. Best of luck!

Hi Martin! I am no expert by any means, I am still looking for my first deal in Dallas! But I can tell you Dallas and Austin are highly competitive, and from what I've heard about Austin, if you don't have a team and system in place already it's hard to get a foothold. Both Dallas and Austin are touted for appreciation more than cash flow (I've read that it can be downright difficult to get Austin and Dallas proper to cash flow due to the property values there), but if you look in the suburbs you might be able to find something that can work for you if you find a good network of support. I've heard good things about Arlington, Garland, Grand Prairie, Irving, and Plano, though I don't have much experience in any of those markets. Best of luck!

I would suggest establishing a target market and seeing if there's room for you to compete in the market. This could also drive your location. If you're looking for Cowboys fans you could target Arlington, SMU could be North Dallas, etc.
I know of one B&B in Norman, OK that caters to college football fans coming watch games. I'm not sure who else they catered to or their approach to marketing, but I think it's helpful they are in a college town.

The hard part in my mind would be making sure there's enough of a market share to keep a B&B going, you'd have a lot of competition from Airbnb, hotels, and any established B&B's. These days with Airbnb going so strong I think you'd need a really good angle/niche/experience worth paying for, because if people are just looking for a place to stay there's rooms dirt cheap on Airbnb. You'd need to have great service, a great location, and you'd have to capture a small group of people who are intentionally looking to stay in a conventional B&B over other options that may be cheaper or more convenient.

I really should start looking for wholesalers! My only worry with that route is that the reno might be more than I can handle, but I'm not seeing a ton of other options at the moment. I'm having to actively push back against a false sense of urgency to hurry up and get a place so your reminder to continue with research is helpful! I keep reminding myself that the money is made when you buy the property. Thank you for the advice, I have some new directions I can start looking in!

Great points! The Dallas market is no joke and you're right that $200 won't make a dent. My focus is to reduce living expenses there, even if I have to cover part of the mortgage myself, it would still be cheaper than going it alone. That said, I still want it to at least break even once I'm out of the property and am renting the whole place out (either by rooms or as one unit). Thanks for weighing in!

Thank you Alyssa!

Thanks for the info Carlos! Those are some excellent things to keep in mind! I don't have a ton of money saved up so I can't afford to be flippant with it. I'm decently familiar with OKC as I've been here for about 6 years, but I don't know it super well from an RE perspective. At this point, any deal I did in Oklahoma would be rushed and that doesn't sit well with me, especially given that it would be my first deal. Until I save up more capital and get a better handle on RE I think I need to wait on OKC.