Looking for your advice on this Duplex in Frisco, TX

10 Replies

Dear BP Friends,

Heard from my Realtor our offer will get accepted on this Duplex and will have it under contract tomorrow. So, now looking for mortgage lenders in that Frisco area who can help in  closing this loan for this Duplex. Please PM me or share your contact. Thanks in advance, Best regards, Suresh

Good Question, I have some Partners who are willing to invest in 20+ units and since this is a Duplex, I decided to buy it by myself, I have a lender I have used in the past from San Antonio for my other Property, now trying to see if I can connect with other local lenders here for this property, I am thinking conventional mortgage but what are my other options?

Originally posted by @Nick Brown :

@Suresh Kannan You made an offer without knowing how you were going to fund it? Are you looking for a conventional mortgage?

@Suresh Kannan

I am no financial advisor. But if you have a relationship with a lender already, use them. It makes no difference if they are local or not. They have their criteria for lending. So as you already have made an offer and it’s accepted, for times sake use your current leader. They have your information. Or go hard money but again makes no difference where they are from.

Every duplex in Frisco I have seen is a horrible deal for probably last 5 years or more.  High price, normally not great condition, and rents so so low compared to purchase price....like $1000-$1200/side on $400,000+ purchase price.  Much better deals to buy, but good luck with that if you decide to move forward.   You're thinking Windy Ridge or Hawthorne St right?   I'd tell every investor don't do that to yourself....

Suresh,

Perhaps if you would like some outside perspective on the deal in general, please share the basic numbers so we here on BP can underwrite it with you.

Aaron Chapman with Security National Mortgage (602) 291-3357 is my go to lender. He closed 6 loans all at the same time during covid with no delays. He and his team are legit. Radical dude also...

Hope this helps,

Tim

@Tim Stuart appreciate it, @Bruce was spot on it’s not great but since I have another property close by, liked this and made the offer. BTW, just to clarify, it’s not accepted, and now this is where we are

Price : 400000

Gross Income: $2570

25% down

My Debt service including property tax and Insurance

$1922.78

10% for expense will be left with ~200 -300 and no property Mgmnt.

@Suresh Kannan that deal seems really thin. Be ready to feed the property constantly. Don’t know about appreciation, but that might be the play here. Especially in the beginning, I find there to be many maintenance requests.

Originally posted by @Ariel K. :

@Suresh Kannan that deal seems really thin. Be ready to feed the property constantly. Don’t know about appreciation, but that might be the play here. Especially in the beginning, I find there to be many maintenance requests.

You are right @Ariel, Will plan for that!!