FHA Pre-Approval for Duplex in DFW-TX

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FHA Pre-Approval for Duplex in DFW-TX

Joseph Porturica
Dallas, TX · Member since 2019 · 5 posts · 0 votes

Hello everyone! Happy Friday! I was just pre-approved for a $400k FHA loan. I am currently working with a real estate team trying to find the perfect duplex. I currently rent an apartment, but would way rather get into a duplex, rent out the other side, and add value to the property in my spare time. I am located in the Grand Prairie zip code 75052 and am searching for full duplexes within a 25 mile radius. What type of important questions should I have for my real estate agent and mortgage lender? My goal is to find a duplex under $325k - preferably in the $200k range, live in the property for two years while adding value to the property with exterior/interior improvements, then move on to the next duplex and repeat. As a first time "buyer" I'm confident there are many things I am not aware of, so any advice would be greatly appreciated. For any duplex owners, are there any specific properties I should stay away from? Or is there anything you wish you would of done differently for your first FHA duplex deal? I do listen to a lot of BP podcasts in my free time, and am continuously learning. Would love to connect with any DFW, Texas or any realtors/investors to grow my circle. Thanks for taking the time to read my post, and I look forward to shared success with all BP members!

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  • Alex Grosvenor
    Realtor · Dallas, TX · Member since 2020 · 146 posts · 148 votes
    5y

    Hey Joseph!

    I've been telling many people this but always go with the rule of 3. Which means always interview at least 3. So talk to 3 agents, 3 lenders, and 3 contractors(if you need them). Each time choose one out of the three that is knowledgable and your personalities mesh well together. 

    Things to Ask Agents 

    Do you know the area?

    Do you work with a lot of investors?

    Do you Invest yourself?

    Tell me about the last Investment you've made?

    Lenders should be able to show you A LOT. What your rate will be, your monthly payment, Interest based on points, closing costs based on points. How much each point will cost you. Ask them to see ALL of it. 

    Also ask what offers they may have (such as paying for closing costs). 

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  • Joseph Porturica
    OP
    Dallas, TX · Member since 2019 · 5 posts · 0 votes
    5y
    Hi Alex,

    Thanks for the response. You have provided me with a lot of insight that I can use to help with my first deal. Do you have any information for any local real estate investing groups? It looks like we are somewhat close by each other. I appreciate your time!

    Originally posted by @Alex Grosvenor:

    Hey Joseph!

    I've been telling many people this but always go with the rule of 3. Which means always interview at least 3. So talk to 3 agents, 3 lenders, and 3 contractors(if you need them). Each time choose one out of the three that is knowledgable and your personalities mesh well together. 

    Things to Ask Agents 

    Do you know the area?

    Do you work with a lot of investors?

    Do you Invest yourself?

    Tell me about the last Investment you've made?

    Lenders should be able to show you A LOT. What your rate will be, your monthly payment, Interest based on points, closing costs based on points. How much each point will cost you. Ask them to see ALL of it. 

    Also ask what offers they may have (such as paying for closing costs). 

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  • Alex Grosvenor
    Realtor · Dallas, TX · Member since 2020 · 146 posts · 148 votes
    5y

    @Joseph Porturica Yes sir I do. 

    https://www.eventbrite.com/e/t... is one happening this Tuesday and is about Subject To's and Creative Financing. Held by Texas Investors Club. About 100 people showed up last month and a ton of knowledgable people there and the people who run it are very down to earth. 

    https://www.eventbrite.com/e/t... is the second one is called The Event. Hosted by Donovan Ruffin and others. About 1000 people attended last month. A lot of information being put out. Happens on December 7th of 2020. 

    I am not affiliated with any of these groups. I just love attending for the people you meet and the information that gets passed on at both of these events. I will be at both so if you attend feel free to come up to me at any time and introduce yourself or reach out anytime before or after then. 

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  • David Veeder
    Investor · Dallas, TX · Member since 2014 · 112 posts · 83 votes
    5y

    Joseph,

    I would warn against trying to find the "perfect" duplex.  I know for my first 4 months looking for a single-family deal, I wanted the "perfect" deal.  It was only after I change my mindset to get a deal that works, that I found and purchased a deal.  Of course, I did not plan to live in the deal. 

    I would be concerned with being comfortable living in the area since you will be living there for two years.

    I launched my career as a real estate investor without knowing it by purchasing a duplex and living in half of it.  My top priority at that time was low property taxes.  I think it was the wrong thing to concentrate on. In the end, it did work out well.

    Good Luck with your search.

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