Rental Property Investor · Plano, TX · Member since 2015 · 80 posts · 14 votes
Hi Guys,
I recently started with real estate investing and started browsing through properties around the north Dallas area and saw one just north of $110,000 and potential rent would be about $1300/month. The house seems like someone recently fixed it up and looks move in ready or rental ready. I plan on visiting the property with a realtor this week but just wanted to ask what do you guys think about it? What should I look for and pay attention to when I go there and any questions I should ask the realtor. The house is a Single Family House in a decent neighborhood with decent schools. Trulia shows the crime map to be the safest, all green as far as you can see. What do you guys think?
Why did you mention a realtor right off the bat?? Did you analyze the deal using only the numbers? How much is the mortgage? How much do you need to set aside for possible repairs? Can you get the owner to reduce his/her price. Are there terms that would allow you to use none of your money? Seller finance, lease to own, etc.
Get a property check off list from a contractor (or maybe they have one on this site) before you do an inspection. Make sure your contract is subject to....(maybe financing, passing inspection or some other clause that would let you out of it if things don't go right after you sign). Please read the material they have available to you here before you sign on the dotted line.
All I can say from the info you provided is that it is slightly above the 1% rule. Is this normal for your area....can you hit 2%?
Without having walked through 50-100 of houses yourself its hard to tell you what to look for, just make sure your offer is contingent on inspection. so you know what you are getting into before you close.
For Dallas this seems like a decent price point. Important factors with SFR are the age of the home, expected repairs, what is the condition of the roof, etc... Also find out about the school district and take a look around the neighborhood. Note what kind of cars people are driving, what kind of people live in the area, do the houses have curb appeal.
I would even recommend knocking on neighbors doors and talking to them and asking about the neighborhood.
I think this market, especially with the high property taxes, is just about at the cash flow limit. I would recommend other markets if you're looking for cash flow. I think if you invest here you would be banking on potential appreciation.
Thanks guys, I saw the house today with a realtor. I asked a realtor because the MLS made it look like it was move in ready but it seemed like it needed some work, also how else can I go see the house without an agent but decided to keep researching for now. Thanks for all your suggestions.