Hey guys, I am currently looking to start investing after I graduate college. Until then I am currently just saving money and trying to learn as much as I can. The plan is to move out to Texas sooner than later post grad. Right now I am looking into Dallas area. Is there any top 10 neighborhoods that I should constantly keep an eye on? I would love to buy a duplex/SF with an FHA loan to HH it. Any recommendations on some great neighborhoods? Not super particular about a certain area due to me not being super familiar with Dallas, so anything works. Appreciate the help in advance!
@Sean McGrady I would strongly recommend you save up the money so you can put 20% down payment on a conventional loan towards a SFR here in the Dallas/Ft. Worth area. I have been working with clients for years trying to purchase a multifamily property to house hack and have no success because they are getting out bid by more seasoned cash investors. its also due to an extreme lack of inventory right now. But recommend you reach out to @Andrew Postell to discuss financing options. He is a fellow investor and has helped many of my clients that are in the same situation your in. Its worth reaching out to him to discuss options since you have a plan to eventually move to Texas. Hope this helps.
Welcome to BiggerPockets you are definitely in the right place.
FHA 3.5% is very difficult to get an accepted contract in this highly competitive Red HOT Real Estate Market across the major metros in the country.
I will suggest you get a 5% Conventional Financing. It will give you some leg up.
As an Investor-Agent in the Houston, Texas market, most of the sellers are not accepting FHA Financing Offer.
I see this happening all the time.
As far as neighborhood, use Niche.com, Greatschools.org, and Msc.Fema.gov for your research.
@Sean McGrady thanks for posting! Always great to hear from a fellow "future" Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.
Now the Dallas - Fort Worth Metroplex (often referred to as DFW) is gigantic. Meaning, "top" areas can be pretty far away. Weatherford, Texas (a place consistently ranked as a great place to live) is over an hour from Frisco, Texas (another great place to live). So where your job will be.....is kind of important to where you live. Your commute will be an important part. Any ideas on where you will work when you get here? Maybe your job is already work from home? If so, then you'll need SOMETHING to provide your agent to help narrow it down some. Euless, Texas was just ranked by the New York Times as not only the top town in Texas but in the ENTIRE United States (article HERE). There's lots to offer here and lots to choose from. Keep in mind there are virtually no 2-4 unit properties though. So competition will be extremely fierce when one pops up.
Certainly here to help if you need anything else. Thanks again for the post!
I am not a Texas native but love it. The posts are above are good advice. DFW is massive. Where you work is important before deciding your living location. When you say good place to live. Do you mean actually to live or do you mean a good place to live and invest? They are totally different areas. Right now new investors have little to no chance on multi family. As mentioned above you will be blown out by experienced cash buyer every time.
I think what we are all saying is you have some homework to do. What’s you investment strategy might be your first question to answer rather than where you want to live. Then is where to deploy that strategy for success and continued repeatable success. DFW is too big to try and do it everywhere. Get to know 2-3 neighborhoods where it will work. Knowing your market area and farming it is key.
Without that in you pocket. Questions like where to live are too vague. All you will get is opinion based on individuals experiences which has nothing to do with your needs.
Reach out to the Home Buying Guys on Insta or via their web site. They're native to Dallas and could be a great source for deals, @Sean McGrady .
I focus on SFR in Arlington, Grand Prarie and ft worth. Let me know if you have any questions.
Welcome, I'd check out old parts of Dallas, maybe garland for a duplex. Won't be pretty, but you're there to make money.
I have to agree with @Nick Brown. It's pointless to ask where in the DFW area to focus on. I'm a Dallas native and only know my areas well. Half of the DFW area may as well be on the other side of Texas for me as I never have any dealings with or have a reason to go to places like Euless or Weatherford. It really depends on your network or connections. If you get a job in say Frisco or know someone in Plano then focus there as you have the beginnings of a team. DFW RE is hot now but for decades it was flat so be patient and don't overpay for something just to get in the game. It ain't San Diego here!
@Sean McGrady Hi Sean! I am so impressed with you already! The fact that you are in college and already considering investing is awesome! I have helped so many new investors and several right out of college. Please don't be discouraged by these posts. Yes the market is hot but I get deals accepted daily with all kinds of loans. I do only investment real estate and sometimes we have to get creative. I agree that you should reach out to @Andrew Postell to get a pre-approval. However, if you need to get competitive I have a few other ideas to get it under contract and then Andrew is there to refi us out. Obviously where you get a job may determine where you want to live. However, in this market with everyone working from home it may not matter. Personally I am more of a fan of Tarrant Count and anything west. You are going to get a much better deal than in Dallas. People outside of DFW think it is one big city, and it is, but very different. Fort Worth people, neighborhoods and pricing are very different. If you are set on the Dallas area you need focus on the outskirts that will be more affordable. There really is not a bad rental area once you are ready to rent. However, I highly suggest short term rentals, that is where the money is! I run a local REI call IMPACT we meet in Grapevine between Dallas and Fort Worth the 4th Monday of every month. We would love for you to come. It is free networking, dinner & education and would be a great place to start getting involved in the DFW investment market. Happy investing!