All Forum Posts by: Rob Lee

Why a condo? Is a single family out of your budget? Do the numbers make sense after you pay the HOA?

According to Neighborhood Scout, the average appreciation rate in Dallas is 5.83%. Maximum loan to value (LTV) on a Texas Cash Out Refinance is 80%. If you live in the property you need a 3.5% down payment. If you purchase as an investor you need 20% down. Use an amortization calculator to do the math.

Texas is a very big state. The larger cities continue to see good appreciation. With that in mind, you are not going to see prices like those seen on shows like Fixer Upper. Each market is different. My wife and I have invested in the Dallas area since 2013. It has been a great experience. Our single-family homes have been very profitable. If you have researched the area using online tools you might know that there is a limited amount of small multifamily properties in the area. With enough money and time, you can find a deal that works for you. Good luck with your search for a partner. 

We love Austin. Unfortunately, it continues to be the most expensive market in Texas. We'll buy in DFW and visit Austin. 

The folks here are dead on. Your biggest challenge will be finding a small multifamily property. They are not very common in DFW. With an SFR, you would be relying on mortgage pay down and appreciation to enable you to implement BRRR. That means you might have to stay in the first house a bit longer.

In 2013 we turned our first home into our first investment property. By that time we had owned the house for 10 years. During that time period, our salaries increased allowing us to more aggressively pay down the mortgage, refinance and save for the next down payment. After that, we were able to speed things up by saving a 20% down payment every year. It's okay to start slow. 

DFW is a great place to invest, build a career and raise a family. If your heart is set on a small multifamily house hack, research Fort Worth. If your focus is on getting a discount you may want to consider a geographic area where small multifamily properties are more common. Good luck!

Thinking about making a move or investing in the Dallas/Fort Worth metroplex? Dallas makes the list of top 15 best cities and this article tells us why.

https://dallas.culturemap.com/news/innovation/08-11-20-dallas-best-city-america-resonance-consultancy-best-cities/

High-end rentals are becoming more common in the area. American Legend created a new construction community of homes that rent for $3000+ a couple of years ago. These new homes are generally 2,500 sq ft and up in size. 

Congratulations on finding BP and narrowing down your areas of consideration. My wife and I have been investing in DFW since 2013. We have been very happy with our decision to do so. The real estate market here remains quite strong. Are your other investments in C+ neighborhoods? I ask because of our personal experience. 

We have owned both A and C+ properties. Even when the economy is good tenants who reside in C+ neighborhoods can find it difficult to make rent payments. Our A properties are leased to tenants with higher incomes. We have had little to no issue collecting rent. Apologies if I am telling you something you already know. Best of luck in your search.

No issues to date. 

We used Legal Zoom to set up our LLC.