All Forum Posts by: Sean Ray

The Dallas market hasn't reached its peak of the cycle but I do know it is closer to the top than the bottom. Should I buy and move into a duplex, fix it up and rent out one side (like the ones in Bishop Arts) for $300k? Or Buy a Single Family Home for under $300k (like over in the White Rock area) and ride the appreciation. Then move in two years for the $250k capital gains break and rent it out then? Down side of option two is that it pushes back my first renter goal by two+ years from now. What makes the most sense financially? If I do option one then when the bell curve goes down I can use the cash flow to buy a bunch of SFH at their lowest. Or is Dallas not even close to its peak with all of these new companies moving in?

This is all great feedback guys. Thank you @Jon Q., @Nick B., @Mark Allen and @David Veeder. This all helps a lot. 

If I ever see you guys out then lunch or drinks on me. Now it is time to refocus and start looking for SFH for rent that can cash flow... *Deep Breaths

 Wow @Nick B. that is nuts!

I love your story @David Veeder. I am focusing more on 2-4 unit places. It seems in your comment that you are a supporter of a SFHR over a duplex+? 

Also, when you say a 10% COC, do you mean in the first year?

This is a great sheet @Jon Q.

The only issue is that I live here and see the market. There are 45,000 jobs already being opened in the next 6 months. Then the jobs that come from that influx will trickle in shortly after all in the North Dallas area. 

Then there will be the infrastructure that will be built to entertain and feed these new people. Then bc of that new jobs. So I don't see a dip in the market coming anytime soon or for any reason. Am I wrong in that assumption?

So @Jon Q., seeing that you are from Berkeley I think you feel my pain. As someone that is looking to buy their first investment and doesn't need supplemental income (also doesn't want a negative ROR) should I just bite the bullet and just shoot for a $1 cash flow and bank on appreciation? All the books I have read said that last sentence is the worst thing you can do.

Thank you @Russell Brazil, yes I feel that making an extra $100+ dollars a month per door wouldn't really effective my life much. I am 31 with income ranging from $150k-$200k a year. I have a good amount saved up but want to make an investment that will lead to many more. I don't want to lose money each month but as long as I have some positive ROI then I would be happy with that.

I know people want to retire through investing but as a real estate agent I don't see myself ever quitting real estate instead just adjusting my focus. 

My parents are supposed to retire this year. They have no savings and are struggling to pay bills. I just don't want to be them one day.

Thank you for your informed response @David Veeder. I have been searching for some time now. Would prefer to do a duplex or more but just numbers aren't adding up. You are right these are not the markets that I was looking in due to low appreciation and job growth but do you think I should focus more on the 1% cash flow in a stagnant market like these areas or invest with at least $1 in cash flow in areas that are almost guaranteed to have huge population booms? 

I look up deals all the time in Dallas and I have found properties that can cash flow but renting a home for 1% of the purchase price seems nuts. That would mean you buy a decent place for $100sqft and rent it for $1sqft. 

Where is that at? No I don't want to invest in other markets or buy homes that are in low income areas. I am doing this part time and don't want the head ache of a property that is on it's last leg.

The thought of buying a Duplex for $22k is mind boggling. My mind doesn't even compute those numbers. That is awesome @Account Closed! Thanks for the post!

Thanks for the feedback and the detailed breakdown @Cash Lawless! @Adam Irvin I am always up to meet like minded people. Do you know of any REI meetings coming up?

I am curious though. As I was reading Cash's reply I was wondering if JV or taking private money like @Chris Jackson was saying would make the most sense? It seems I would be getting at 25% RoR in the deals I am looking at but if I have to be profit sharing with someone for 30 years I am not sure that would be the best buy and hold strategy. Am I wrong about that? 

My dad is looking to flip some houses in the area with his friend that has deep pockets but that is a few months on money in money out versus a long term marriage with a money partner.