All Forum Posts by: Jorge Gonzalez

Hey again Harrison, I currently have two single family homes the DFW area, one in North Dallas and another in North Irving area and using the rent by the room strategy and so far it's been working great in these areas. I chose these places specifically because the purchase price of these homes are lower compared to the Plano and Carrollton areas, and you can potentially net the same amount the rental income by the room if you purchase a nice looking rent-ready home, hopefully not paying a premium on this. I really like these areas as they are close to a ton of professional jobs and high probability of better tenants. My homes are 3/2 each, but one has an extra space that I am using as a 4th bedroom. Moving forward, I am definitely only looking at 4/2 and 5/3 and anything in between just to squeeze in more rental income. I'd say the North Dallas home was a lot easier to rent out, I had one month of vacancy on my Irving home for 1 room, which wasn't terrible as I purchased during winter season. If you would like to discuss more, would be great to chat. Seems like we're doing the same thing out here. 

Hey Andrew, I've had quite some success house hacking a single family home in the North Dallas area, very close to Richardson. The main reason for this area was the quality of tenants it attracts such as young professionals working in the Addison, Galleria, Richardson, and Las Colinas area, a ton of corporate jobs within a 15 mile radius. In addition, you get a very low maintenance student tenant pool from UTD. In this specific home, I have cash inflow of $1,900, and expenses are $1,600, so I'm cash flowing about $300/month while getting to live for free. The great thing is, that my cash going into this deal was a 3% down with a conventional loan, so I was in this deal for $11k capital. After PMI is gone, expenses will go down to $1,450. I went so well that I'm already onto my next deal, I have my next home under contract in the North Irving area. These two areas are worth considering, especially if you're looking as central in the dfw metro.

I attribute a lot of my success to the relationships I’ve made here with my investor friendly agent @Kenneth McKeown and my lender @Tyler Hodgson. They have both given me the best investment advise in the Dallas market given my life circumstances and investing strategy. These are the guys you want in your team! They are dominating the Dallas market and are investors themselves. Let’s connect in person sometime, would love to discuss more.

Investment Info:

Single-family residence buy & hold investment in Irving.

Purchase price: $206,500
Cash invested: $48,000

This purchase is a normal 20% down investment property located in Irving, TX.

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

I noticed this home had gone under contract twice and I was intrigued to figure out how I can work with both the home and the seller and get this deal under the listing price.

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

I found this on the MLS, it was listed for $225k but it needed a roof replacement, had gone under contract twice and both buyers backed out due to this issue, but I negotiated with the seller offered $195k and I am responsible for roof. Ended up getting the home for $206k after closing cost.

How did you finance this deal?

I did a normal 20% down investment loan.

How did you add value to the deal?

NA

What was the outcome?

I am cash flowing $400/month

Lessons learned? Challenges?

NA

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

NA

@Matt Heidenfelder Hi Matt, I’d say overall those are solid rental markets with a ton of blue collar workers. Personally, I prefer a better tenant pool such as young professionals and more financially stable families to reduce vacancy, so I personally invest in areas towards the North Dallas area and Collins county. There’s also a lot of competition in that area for rentals as lower cost of entry for investors so you, I always see a ton of homes for rent in that area, just something to think about.

Cash on cash return is still extremely solid in North Dallas cities, and a ton of more commercial development activity is happening in this part of town in DFW such as office, retail, residential, and hospitality. Not counting on appreciation, but it’s certainly happening. Not as much development activity in the mid cities that you listed compared to this area. I personally track exactly where employers and private equity firms are investing in Dallas and I am purchasing as close to these areas that are still affordable now, but won’t be for too much longer.

Hope this helps.

Hi Collin, 

Welcome to this amazing community. I myself also relocated to Dallas from Los Angeles 5 months ago just to start my real estate investment career and I already have my 2nd home under contract. I've had great success in being able to understand the DFW market by looking doing a lot of due diligence research on corporate relocations, school district, rental rates, purchase price, competitiveness. I also credit a lot of my success to the relationships I have made here in the area with my real estate agent @Kenneth McKeown and lender @Tyler Hodgson. They've given a ton of free advise in narrowing down the markets and evaluating which sub markets have great rental comps, high quality tenants, and low purchase price. Kenneth is also personally an investor in multifamily as well and knows the area extremely well, would be the perfect contact for you. Tyler will give you the best rates as well and provide so much knowledge about your financing options. 

Feel free to connect, would love to talk to you in more detail. Best of luck @Collin J Marshall

Hi Mansi, 

Selecting the correct sub-market within the DFW metro can pose to be very challenging. That being said, the way I have been able to identify which Dallas markets to invest in is primarily the influx on new corporate jobs, school district, rental comps relative to purchase price, competitiveness, and also look at your own situation. For me, I like to be as close to the .80 - 1.0 percent rule in the Dallas market, but can be challenging. I personally like to look at rental websites to see where SFH have high comps and are not super expensive with good potential for quality tenants.

Hope this helps. Feel free to reach out. 

Jorge

Hi Andrew, I've also worked closely with @Kenneth McKeown. He's extremely knowledgeable about multifamily in the dfw area, he's personally an investor and owns a few of them. I have my second home under contract through Kenneth and he has personally given me invaluable investor advise through the relationship in terms of what to look for, where to look for, and the different options I have. 

In terms of sub markets to look at, I'd advise looking city of chambers websites, city websites, commercial office space reports, and business journals. I personally pay for annual subscriptions just to keep up with all Dallas news, ROI on these is so worth it.

@Kenneth McKeown

@Roberto Lugo

Hi Roberto, you’re in the perfect market to get yourself into a house hack property. I myself moved to Dallas dfw metro from Los Angeles just to be able to begin my real estate investing. It seems like we have a similar background, strategy and goals. I myself work doing financial statement audits for real estate private equity funds and construction companies. I’m currently leveraging my career to fund my house hack sfh investments with 3% down conventional and 20% down investment loans. I also work full time in uber to expedite the process to increase my capital (increase revenue your streams!) and am finding myself being able to fund 2 single family homes a year. One being 3% house hack at price ranges about $175k-$210k specifically with 4 bathroom- 2 bath in very good rental markets, you have to do your research, and if purchased correctly, you can make cash flow upfront. I would say getting yourself into a home ASAP as Kenneth mentioned outweighs the benefits of waiting. All at the same time while I’m in my house hack, I then save 20% for a similar home, this can be 3 bedroom 2 bath similar price range. And because of the one year clause for conventional, you have to live in the property for at least one year, I plan to convert that into a rental, and then move into my next house hack the following year, rinse and repeat , and you should be on your way to financial freedom where you can quit your job, but it takes time and dedication.

Feel free to reach out to myself or Kenneth if you have any other questions, he was such a big help in this process.

Let’s connect sometime.

@Larisa Jimenez Hi Larisa, I'd suggest some of the following local meetup groups, maybe you'll find some people who also invest in multifamily: 

https://www.biggerpockets.com/...

http://www.dfwreiclub.com/

https://dfwmidcitiesreia.com/

https://www.meetup.com/DFW-REI...

Hi Hunter, 

I was living in Los Angeles before moving out to Texas to begin my real estate investing, and I was looking at the 4 big markets, Austin, Dallas, Houston, and San Antonio, and I ultimately decided Dallas was the best in my own opinion for various reasons. I personally comfortable investing in markets where corporate jobs are expanding/relocating, large net migration in population, and good rent ratio relative to purchase price. I also look at other factors such as competition, school districts, new developments and the age of population. I would suggest to look at these trends in TX areas you are considering investing, and you'll naturally start filtering the good areas. 

Hope this helps. 

Jorge