Investors in Dallas, what are you looking to buy?

Question

Hello all,

My name is Ryan and I'm new to the discussion.  Like many others I am looking to transition slowly into RE investing, wholesaling in particular (to start).  As many others have expressed I currently work full time and am looking to earn some extra income on the side to begin paying off student loans and saving for both a house and adoption.

I live in the Dallas area and am looking to expand my contact base so that I am looking for deals that would be helpful for other investors when I flip.

Can anyone active in the Dallas market offer insight into what they are specifically looking for so I can be strategic in my marketing?

Thanks ahead of time.

Account Closed · Answer

@Jerry Puckett - It seems we are neighbors!  That is an extremely generous offer and I truly appreciate your willingness to help.  If you would ever have time to meet up I would be most grateful.

Account Closed · Answer

@ John Chapman Thank you for your wise words.  I know Dallas is blowing up right now so non-conforming properties may be the way to go.

@Jon Klaus I will likely join the BP pro very soon.  Thanks!

@ Andrew Herrig Also great input.  Truly appreciated.  I'm always looking at multifamily properties bc there is a good chance my wife and I's first home is going to be a duplex.  Trying to keep my finger on the pulse.  It's difficult though because, as you said, many of those properties are warzones.

Jerry Puckett · Answer

Hi Ryan, welcome to BP! Looks like you and I are neighbors. We should get together sometime.

John and Jon are both correct in their assessments. I have been wholesaling in this area for 4 years now and I can usually find a buyer before the ink is dry on the contract. Do not worry about Buyers, there is so much cash flying around the market right now, that's the least of your worries.

Spend your time focusing on the deals. Market market market!! I don't care what the property looks like, or where it is, get a good enough deal on it (70% of ARV or less) and you will have no trouble moving it. I'm happy to help you find your buyers while you're getting established. Whatever you may need help with, feel free to reach out, I'm just a few blocks away.

Andrew Herrig · Answer

As a new investor in Dallas, I'll offer a little different perspective. While I am also interested in SFH below market value that generate good cash flow as rentals, my first purchase was a duplex. I would be extremely interested if you found a way to market to tired landlords with underperforming 2-4 unit properties and get these properties at a discount. I think the key is to market in good areas, as I seem to have trouble finding any decent multifamily deals in areas I would feel comfortable investing in.

Jon Klaus · Answer

There are several right here at BP that post regularly and many others who are lurking.  Get a pro membership and post your deals at Marketplace. You don't want just local exposure. I've worked with people from around the world that found me through BP.

Account Closed · Answer

Jon,

I appreciate your willingness to offer help.  I don't personally know anyone in RE investing so all the wisdom I can glean is appreciated.

How would you recommend I go about reaching out to buyers apart from my local REI group?

John Chapman · Answer

I think Jon Klaus is right.  Most people are looking for the same type of property around here.   In my experience, the typical buy and holder likes anything with an ARV of 70K-140K.  (If you go much lower than this range, the properties are difficult to finance and if you go much higher rents taper off relative to cost).  This range is, quite frankly, brutally competitive because they are the most liquid, most sought after properties.  The stereotypical house is a 3/2/2 in a decent area (generally, houses in that ARV are de facto in a decent area).  That being said, there is always someone who will buy a nonconforming house (e.g. a 3/1/1) if the price is right.  Basically, if it's a true deal, you will have no trouble wholesaling.

Jon Klaus · Answer

Welcome to BP, Ryan.  Many local investors are looking for the same thing. Under market rentals in good, safe areas.  For example 3/2/2s for $90k that rent for $1200-1300.