All Forum Posts by: Kevin Coco-Senyszyn

@Ighovwerha Doghudje, Welcome! Are you looking for your first investment or just new to Dallas?

Hi @Vijay Rao! We manage SFR in McKinney. I would be happy to speak more with you about how we can help you! I'll connect with you now.

You know how people say, "They took everything but the kitchen sink"? Well, wouldn't you know it, these tenants took the kitchen sink! Thankfully, this was not a tenant we had placed, but an owner who came to us after they had stopped paying rent. 

Say you get $1000 per month in cash flow from a property. If you finance $24,000 out of your property, you have that guaranteed “cash-flow” for yourself for the year, and it’s not taxable as income. Plus you save the other $12k for expenses. Cash flow feels safe and stable, but it isn’t guaranteed. What if the tenant moves out? What if the sewer line needs to be replaced? If you finance, you know you can have that income no matter what. Your rates will be far lower than if you finance 80% of the property, and you’ll still have significant cash flow from the property. If you want security, borrow it and let your tenants pay it back. 

 @Kalina C. Hi! I’d love to connect! I’m a realtor and property manager in DFW. Are you looking to invest yourself?

Erick, it appears that you're eager to embark on an investment journey. Given your full-time job, you might want to focus on properties that require minimal attention and provide a steady income, ensuring you can avoid undue stress from unforeseen issues. I'd recommend exploring areas such as Keller, Watauga, Hurst, Euless, and Bedford, as these locations tend to offer reliable investments. While homes in these neighborhoods may come with a higher price tag, the associated risks are generally lower.

If you prefer to concentrate on your day job and delegate property-related issues to experienced professionals, partnering with a property management company could be an excellent solution for you.

Erick, it sounds like you're ready to find an investment. It seems to me like with a full-time job you'll be looking for property with few problems, and consistent income. That way you don't have to stress out about unexpected problems. Keller, Watauga, Hurst, Euless, and Bedford are pretty good areas to start your search. The homes might be a little pricier, but you'll find there's also less risk. If you decide you want to have someone else handle the problems so you can stick to your day job, property management can be a great avenue for that.

It might be helpful to explore different lenders to see if you can find better rates on a home equity loan. I would start asking around here on Biggerpockets for investor-friendly lenders who can help you. You could also consider looking into a home equity line of credit (HELOC) as another option, which might have lower interest rates. Additionally, partnering with a real estate investor or private lender could be a great way to access funds for the down payment without putting too much pressure on your own resources.

@Vika Kunta The "appreciation wave" can quickly crash if people decide they've been riding a bubble. If you get caught in a down market with a -$300 CF, you're basically SOL until the market rebounds, which could take a decade. Conversely, if you can achieve even a $1 cash flow, enduring a 10-year holding period becomes more bearable.

To answer your question, I can't speak for Buda and Kyle, but our investors have been achieving cash flow and appreciation here in Fort Worth and in Killeen, which is a growing secondary market outside of Austin. As interest rates and property taxes rise over time, you can adjust by increasing rent to offset these expenses.

I've also heard some new builds in markets north of Dallas are picking up steam. The benefits there are low maintenance and expected growth/appreciation, but you run the risk of having slower rentals for the first couple of years. Might be worth looking into if you're close to the $350k price range and looking for something that won't require hefty rehab, inspections, and closing costs upfront. 

Hey, @Tomas Nuno, I think you have a great plan to invest here in Texas through house hacking. As someone who's seen many investors thrive with this strategy, I recommend that you focus on adding value to your property by rehabbing it one unit at a time while living in the other. This is a great way to maximize your investment while keeping your living expenses low.

One common mistake investors moving from California make is not realizing that California and Texas markets are different, which means your investment strategy needs to be different as well. While a property may seem to meet the 1% rule on paper, be warned that there might be unexpected maintenance, repair, and tenant expenses that could hurt your cash flow. I suggest you talk to investor-friendly real estate professionals in the markets in these markets to help you evaluate properties and make informed decisions.

 Thank you for the mention @Kyle Mccaw! @Phillip Matro Capiral I would love to speak with you about your 4-plex. I will connect with you and reach out.