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Nicholas Roser
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Relocating to North Dallas Suburbs

Nicholas Roser
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Posted Feb 26 2024, 16:50

We are looking for advice on investing in the Dallas Area. We are looking for possible Duplex/investment properties while also trying to find a place to live. Are duplex's a good investment opportunity knowing we will need to live in one portion of it? Are there any other opportunities for investment or short-term place to live in that area? 

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Clayton Plummer
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Clayton Plummer
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  • Manhattan, KS
Replied Feb 26 2024, 17:31

I don't know about the Dallas area, but I am currently house-hacking a duplex and it's great.

A deal is a deal, so definitely do your homework and make sure it's the right property.  

My wife and I use a property manager to handle the other side of our duplex.  My wife and I work full time jobs, so dealing with tenants is a low priority.  Yes, we give up 10% of the monthly rent, but we have the piece of mind that someone else is dealing with the issues.

Anyway, good luck!

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Mark R.
  • Real Estate Broker
  • Texas
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Mark R.
  • Real Estate Broker
  • Texas
Replied Feb 26 2024, 20:30
Hi Nicholas, there are duplexes in the area, but they aren't quite as common as in other places I've done real estate. Prices in DFW are up quite a bit in the last four years as our rents, it depends on where you are looking.  I think the strategy can make sense considering what your goals are. Purchasing a half-duplex on one property ID is also possible, so keep an eye out for that. If you want to chat about rentals feel free to send me a DM and we can chat. I'm a broker with a team, but always glad to just share a little of what I've learned.
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James Carlson
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  • Denver CO | Colorado Springs, CO
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James Carlson
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  • Denver CO | Colorado Springs, CO
Replied Feb 26 2024, 21:41

@Nicholas Roser

I don't know the Dallas area, but if it's anything like Denver or Colorado Springs, then multi-units can be tough to find for house hacking. 

One other option is to house hack a SFH with a carriage house or a basement that has a separate entrance of some kind.

Only issue with that is that if/when you move out, zoning likely doesn't allow you to rent both up and down separately.

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Richard Helppie-Schmieder
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Richard Helppie-Schmieder
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Replied Feb 26 2024, 22:04

Hi Nicholas, please reach out to me through a DM. I am selling a duplex I own on Junius Ave and can connect you with people in the area. I also host 2 monthly real estate events, no sales, all education and networking. I would love to meet you, just reach out!

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Bruce Lynn#2 Real Estate Agent Contributor
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  • Coppell, TX
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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Replied Feb 26 2024, 22:44

Welcome to DFW.  One thing to consider is splitting the idea of looking for a place to live and the idea of an investment property.  Often two very different ideas.  Might just depend on your situation though.  Many people like to live in nicer places or better areas than what they have for investment properties.  For example some people want wood floors and granite counters in their personal residence, but may not want that in their investment property, if that makes sense.

As @Mark R mentioned, we don't have a lot of duplexes here, like other parts of the country.  For example the city of Frisco is a pretty popular place to live today, population over 200,000, and I'll bet there are less than 100 duplexes.   So it can depend on where you want to live.   Some cities like Arlington, Dallas, and Fort Worth have more.   Very few newer built investment type duplexes unless you go to someplace like Denison, about an hour north of the metroplex.

If you're thinking about using the 2nd side as a STR, make sure you understand both the current law and sentiment for STR in the area. Arlington has a very small area where it is allowed. For the most part not allowed in FTW, except in commercial areas. Dallas outlawed STR in about 90% of the city, but that is being challenged.

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Wale Lawal
  • Real Estate Broker
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Wale Lawal
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Replied Feb 27 2024, 04:20

@Nicholas Roser

Investing in a duplex can be a smart strategy, especially if you plan to live in one unit while renting out the other. This arrangement, often referred to as "house hacking," allows you to benefit from rental income while also occupying the property. Here are some considerations for investing in a duplex in the Dallas area and potential alternatives:

Investing in a Duplex:

If you rent out one property, you can possibly create positive cash flow by partially offsetting your living expenditures.

If you're an investor with limited funds, duplexes could be a more accessible alternative because they may have lower entry expenses than bigger multifamily properties.

Perform in-depth market research in the Dallas region to pinpoint communities that have high demand for rentals and good prospect for real estate growth.

Take a look at owner-occupant-friendly financing choices including FHA loans, which frequently have less down payments.

Make sure you have a well-defined escape plan. Your selections will be guided by your plan whether you want to sell the property, carry on house hacking, or switch to another investment.

Other Investment Opportunities:

Single-Family Homes: Dallas has a diverse real estate market. Consider single-family homes as an alternative if a duplex doesn't meet your criteria.
Condos or Townhomes: Condos or townhomes can be a low-maintenance option for both living and investment purposes. They often come with amenities and are suitable for those looking for a shorter-term living arrangement.
Short-Term Rentals: If you're open to short-term living arrangements, exploring the short-term rental market can be an option. This could involve renting a property on a month-to-month basis or using platforms like Airbnb.
House Flipping: Depending on your risk tolerance and investment goals, house flipping may be an option. Identify properties that need renovation, improve them, and sell for a profit.

Before making a decision, thoroughly analyze the local market, consider your investment goals, and consult with a local real estate agent or investment advisor. They can provide insights specific to the Dallas market and help you make informed decisions based on your unique situation.