All Forum Posts by: Rob Lee

I think you are in a decent position already. It's tough to get cashflow in Dallas right now. What’s your personal goal? Cashflow? A larger portfolio? If you want more cash flow you should definitely self-manage. The BP books (Rental property Investing by Brandon Turner) tell you how to do that and how to set up a system. Besides, it’s only one place.

OR I would do a 1031 exchange if growth is what you are going for. I personally did it with a single family that I was having growing foundation issues. We did a 1031 to 6 unit. I don’t think I would have if it hadn’t had issues though. Also, after all of the numbers are done, are you in the negative? How are the numbers? These are my suggestions.

Which city are we talking about exactly?

I wish I could go back to 23 when I was in the Marine and tell myself to start buying houses now! (Orahh, btw) If you can get people to be roommates with, all the better! They can help you pay for your home instead of blowing it all on helping someone else pay for their house. Just my opinion brother. I'm kinda bias... 

Congratulations on getting started! The answer is to understand your finances. Do you have the reserves to cover the mortgage and/or make major repairs if necessary?  Are your parents on board with you staying as long as it takes to save the 2nd down payment?

@Lacey Burns Congratulations on your first investment! First rule, real estate is a business. If you decide to self-manage do not let the tenant know that you are the owner. Instead, you are the property manager. People who self-manage often believe they are saving money. Many don't consider how much they're losing by subsidizing the tenant's rent. We're all human. When you have contact with a tenant you tend to develop personal relationships. It's important to set boundaries. These relationships often lead to a failure to keep up with market rent. Small landlords give hundreds a month in "discounts". Not realizing that they wouldn't give most people in their lives a $200 - $400 a month stipend. 

When the owner is ready to sell he/she might even lock in the rent at a lower rate by renewing the lease before listing the property. This is a short-term fix to what is now a big problem. The tenant can no longer afford the rent. The new owner is painted as a jerk because he/she expects market rent for the property they paid for. I am a full-time licensed Texas Realtor. However, I am not a property manager. I use property managers for my investment properties. If you decide to go with a property manager you want someone who will actually go into the property to check on the condition. I don't think people set out to become slum lords. They just get comfortable when the rent is paid on time. You would be amazed at what people will live with in order to keep a landlord out of their home. Whatever you decide, make it clear upfront that "management" will perform property inspections. Hope that helps. Good luck!

Rob TX Realtor

Hey Sharon! We've all been there! I was terrified on my first rental (2013) Now it's just like anything else, but it's building MY net worth not someone else's! You gotta just pull the trigger and get started if you want to learn. And you will learn! Know your numbers and what will work for you, do some sample deals, get pre-approved, and go for it! You sound like you have studied a ton. Good luck!

Hey Jacob! I think it depends on where you want to end up. Do you want to sell real estate? Be an investor? Development? I don’t know much about the last one. Also are getting some type of degree associated with real estate? These are some of the things you should think about. If I could go back to 18 I would get my degree in something that I liked but mainly helped me make as much money as possible (like software development) then I would take that money and be laser-focused on investing in real estate. (You could possibly retire or live the life you want by 40) Since you already have your license, maybe you are looking to do something different. Hope this helps! Good luck buddy!

@Eric Long Yep, house hacking provides an opportunity to get the mortgage paid until you are ready to move on to your next property. Rents continue to rise and DFW remains low on inventory. High property taxes and interest rates aren't going anywhere anytime soon. Purchase something you wouldn't mind living in and refinance later.