All Forum Posts by: Rob Lee

Home prices have increased since those episodes were recorded.

Rental properties thrive where there are job opportunities. We like North/Far North Dallas because it's newer. It's where new companies set up headquarters. We like Arlington because of the entertainment facilities in the area Cowboys stadium, Texas Rangers, Six Flags, etc.

Your budget will play a big part in where you can invest. Our single-family homes in neighborhoods with quality schools have performed great. Very low vacancy rates with few issues collecting rent.

What out of state investors want to be aware of is that Dallas is not Waco. Don't get me wrong, my wife and I love Chip and Joanna. But Waco in 2020 isn't the Waco you see on Fixer Upper. 

Note: Texas does not have state income tax. Property taxes are high.

Hope this helps.

It would likely be considered renting to family, even with an LLC. You may want to consult a CPA.

Perhaps a friend or family member would be willing to assist. If you have no skin in the game I can't imagine anyone else signing a partnership agreement with you. If you are able to live in the property a lower down payment is required. Is that not an option? 

If you decide to enter into a partnership make sure you have a contract that outlines the terms and conditions in detail. If the other party has the down payment what do you bring to the table?

We purchased a property under similar circumstances in 2014. While we were aware of the foundation issues there was no visible damage at the time. It was a cash flowing rental for a few years. By 2017 additional piers were required, flooring had to be replaced and walls had to be repaired. Significant plumbing work was also required. The plumbing was an unwelcome surprise. Every investor should have a plumber in the family. In 2018 we took advantage of appreciation and sold the property for a profit. It's important to keep a healthy fund for repairs. 

Arlington/Fort Worth would definitely be your area of focus. DFW does not have a large number of small multifamily properties.  Our current market has pretty low inventory right now. It's a very competitive environment. Every property is getting multiple offers. The key is to be ready to execute when you see what you want. As you probably know, offers without a prequalification letter will not be considered. Good luck in your search.

The DFW real estate market continues to thrive. An increase in commercial real estate leads to more jobs. More jobs lead to more home buyers. It's all connected. https://rejournals.com/nows-the-time-to-invest-in-texas/

Hi Michael, 

I think this blog post sums it up nicely. Hope you find it helpful.

https://www.biggerpockets.com/blog/how-to-estimate-rental-property-expenses

At first glance, it does not appear that you have enough equity for a refinance to make sense. Have you considered using Google to locate a refinance calculator? This might be a more effective way to get your answer.