Rehab opportunities in Dallas, Texas

Dallas, Texas
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Rehab opportunities in Dallas, Texas

Reza Khaknegar
Member since 2018 · 8 posts · 3 votes

My wife and I are thrilled to announce our upcoming move from California to Dallas, Texas in December. We have a new construction home scheduled to be completed by the end of November. As a business owner and with my wife being a physician, we have found a shared passion for remodeling homes and unintentionally turning a profit with our past properties.

We have thoroughly enjoyed the process of adding our personal touch to homes before selling them. With our move to Texas, I am looking forward to pursuing property flipping as a profitable venture.

Our experience in renovating and selling homes, coupled with our individual professional backgrounds, gives us confidence in our ability to succeed in this new endeavor. We are excited about the opportunity to explore the real estate market in Dallas, Texas, and to continue our journey of improving properties for resale.

Your input and advice on this new chapter in our lives would be greatly appreciated.

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Mark R.
Real Estate Broker · TX · Member since 2008 · 50 posts · 22 votes
2y

CA flipping can be very different than TX depending on where you were doing it... ie. Murrieta vs Oakland vs DTLA. There are some similarities you'll see here in TX.  You'll see it in design too. In CA we were doing a lot of tile and quartz, where most submarkets in DFW are still hardwood floors and less contemporary.  As a Texan I had to learn about things like Rampart fireplaces and earthquakes, and you'll learn more about our foundation issues and the primary bedroom preference downstairs here.

If you're into design and big remodels, you'll likely want to think about 750k+ homes ~1990 vintage and older. Those can be a lot of fun and you add value by bringing them current/trendy. The homes under 400k for flipping in DFW are going to be a little boring in most cases, IMO. From what I've seen recently it is very competitive.   Let me know if you want to chat, feel free to send me a DM.

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  • Gary Mascitis
    Member since 2024 · 53 posts · 11 votes
    2y
    Quote from @Reza Khaknegar:

    My wife and I are thrilled to announce our upcoming move from California to Dallas, Texas in December. We have a new construction home scheduled to be completed by the end of November. As a business owner and with my wife being a physician, we have found a shared passion for remodeling homes and unintentionally turning a profit with our past properties.

    We have thoroughly enjoyed the process of adding our personal touch to homes before selling them. With our move to Texas, I am looking forward to pursuing property flipping as a profitable venture.

    Our experience in renovating and selling homes, coupled with our individual professional backgrounds, gives us confidence in our ability to succeed in this new endeavor. We are excited about the opportunity to explore the real estate market in Dallas, Texas, and to continue our journey of improving properties for resale.

    Your input and advice on this new chapter in our lives would be greatly appreciated.


     Hi Reza,

    Congrats on the move! I'm sure you will find Texas to be a much easier place to deal in real estate than California currently is! Happy to answer any questions you guys may have along the way on your new journey. Feel free to reach out!

    Best,

    0Reply
  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    2y

    @Reza Khaknegar Congrats on you're wife's move to to Dallas. This is a great place to both live and become an REI. I would first suggest that you get a licensed home inspector to look at your new construction home once it is complete. Based on my experience builders make a lot of mistakes during construction. Always good to get an independent professional to look at it before you go to closing. Send me a message and I will be happy to recommend one. I would also be happy to recommend a Hard Money Lender (HML) that is a local flipper as well. My goal as a fellow investor/realtor is to help other investors regardless of their exit strategy. So happy to help you and your wife along your REI journey.

    1Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    Welcome to Texas.  You can do it here if you can do it anywhere.  It won't be easy, but you know that already.  Just like anywhere else I think the biggest challenge is finding homes to flip at the right price and being able to build a team of trades that can complete projects on time, within your budget and with the quality that can sell.

    With your experience I'm surprised you bought new construction.  You could have found a nice one to remodel and continue the profitable venture.  Did you GC the new one yourself, or did you buy from a production builder?

    I think one of the biggest differences between TX and CA (we moved from Bay Area) here is the price differences.  The rehab gap pricing is lower and I expect tougher to make the numbers work.

    0Reply
  • Mark R.
    Real Estate Broker · TX · Member since 2008 · 50 posts · 22 votes
    2y

    CA flipping can be very different than TX depending on where you were doing it... ie. Murrieta vs Oakland vs DTLA. There are some similarities you'll see here in TX.  You'll see it in design too. In CA we were doing a lot of tile and quartz, where most submarkets in DFW are still hardwood floors and less contemporary.  As a Texan I had to learn about things like Rampart fireplaces and earthquakes, and you'll learn more about our foundation issues and the primary bedroom preference downstairs here.

    If you're into design and big remodels, you'll likely want to think about 750k+ homes ~1990 vintage and older. Those can be a lot of fun and you add value by bringing them current/trendy. The homes under 400k for flipping in DFW are going to be a little boring in most cases, IMO. From what I've seen recently it is very competitive.   Let me know if you want to chat, feel free to send me a DM.

    3Reply
  • Reza Khaknegar
    OP
    Member since 2018 · 8 posts · 3 votes
    2y
    Quote from @Joe Funari:

    @Reza Khaknegar Congrats on you're wife's move to to Dallas. This is a great place to both live and become an REI. I would first suggest that you get a licensed home inspector to look at your new construction home once it is complete. Based on my experience builders make a lot of mistakes during construction. Always good to get an independent professional to look at it before you go to closing. Send me a message and I will be happy to recommend one. I would also be happy to recommend a Hard Money Lender (HML) that is a local flipper as well. My goal as a fellow investor/realtor is to help other investors regardless of their exit strategy. So happy to help you and your wife along your REI journey.


    Thank you, Joe, yes, I would appreciate any referrals for inspection companies. I have to definitely get the project inspected in phases.
    1Reply
  • Reza Khaknegar
    OP
    Member since 2018 · 8 posts · 3 votes
    2y
    Quote from @Mark R.:

    CA flipping can be very different than TX depending on where you were doing it... ie. Murrieta vs Oakland vs DTLA. There are some similarities you'll see here in TX.  You'll see it in design too. In CA we were doing a lot of tile and quartz, where most submarkets in DFW are still hardwood floors and less contemporary.  As a Texan I had to learn about things like Rampart fireplaces and earthquakes, and you'll learn more about our foundation issues and the primary bedroom preference downstairs here.

    If you're into design and big remodels, you'll likely want to think about 750k+ homes ~1990 vintage and older. Those can be a lot of fun and you add value by bringing them current/trendy. The homes under 400k for flipping in DFW are going to be a little boring in most cases, IMO. From what I've seen recently it is very competitive.   Let me know if you want to chat, feel free to send me a DM.


    Thank you, Mark. I appreciate the input. I'll definitely keep you in mind with any questions once I'm actually there. I definitely agree with you on making sure that the project is entertaining the ones my wife and I did. We really had a really good time with being creative with the homes we did together.
    0Reply
  • Reza Khaknegar
    OP
    Member since 2018 · 8 posts · 3 votes
    2y
    Quote from @Bruce Lynn:

    Welcome to Texas.  You can do it here if you can do it anywhere.  It won't be easy, but you know that already.  Just like anywhere else I think the biggest challenge is finding homes to flip at the right price and being able to build a team of trades that can complete projects on time, within your budget and with the quality that can sell.

    With your experience I'm surprised you bought new construction.  You could have found a nice one to remodel and continue the profitable venture.  Did you GC the new one yourself, or did you buy from a production builder?

    I think one of the biggest differences between TX and CA (we moved from Bay Area) here is the price differences.  The rehab gap pricing is lower and I expect tougher to make the numbers work.

    Thank you, Bruce. Initially, we were planning to buy a used home and remodel it. However, due to time constraints and our location in California while the project will be in Texas, hiring a general contractor without a track record in home building has proven to be difficult to manage remotely. This is especially challenging when we lack that kind of experience.

    I have had experiences dealing with production builders in the past, learning both the positive and negative aspects of their work. We have decided to go with Drees Homes, who are semi-custom builders. Despite this choice, I still intend to have an inspection company involved, inspecting every phase of the project. This way, I have the assurance of working with a larger company compared to a small general contractor involved in a property flip.

    Managing this from California has presented its own set of challenges.
    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    I understand.  Generally Drees does a good job.  As with every builder/GC you really have to keep an eye on them, but they're probably as good as any in their market.

    1Reply
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