Aspiring Investor moving to Dallas,TX

29 Replies

Thank you @Ken Dunn right now I am reading BRRRR by David Greene! It has been speaking on the same beginning steps you just explained. I will add some of these other reads to my least. I have been dedicating an hour a day to learning, reading, or listening to YouTube videos on real estate investments. Sounds like I need to focus more on learning about house hacking. I really appreciate your advice, super helpful!

@Jasmine Smith - I think with 20k to 40k then, you must mean the renovation budget?  Or perhaps the increase in value you expect from renovations?  

To clarify: ARV = After Repair Value. This is your target market value for the property AFTER repairs have been made.  For example we bought a house a few years ago for 80k, put 60k in renovations in, so 140 all in plus closing costs, but house appraised close to 185k when we were done with the work.  The ARV is the 185k; the 60k is the renovation budget we put into the property to create the additional value.  The ARV for some of the Farmers Branch houses these days certainly starts around $200k...

I can see a 30-40k rehab budget that is generally cosmetic, depending on the size of the property.  And depending on the age of the property, you will probably have some other items to address (plumbing and electrical for example) that can push that up.

Andy

@Andy Webb okay yes I understand what ARV is. I meant that I would like to be able to profit $20k-$40k after purchase price and rehab cost. So if I purchased something for $100k I put $40k into for rehab I would like for it to appraise for at least $180,000 or more so that I can profit $20k-$40k after selling and the other expenses that come with selling a property. I haven't started practicing with numbers nor the calculator on various properties.

I would just add that you might want to househack short term while looking for the first investment/long term house hack., and getting familiar with Dallas.   By this I mean perhaps even renting a room so that you are not under pressure to buy a deal, it make take some time to find the deal that works for you.

Duplexes aside, another option is to look for SFR's with ADU's (in-law suites). I like those, but not many cities in DFW allow them to be rented out for income. This type of property gives the owner the option to live in the studio and rent out the larger house for a bigger househack return than a duplex. (or find a loop sided duplex with a 3/2 2/2 combo for example.

Just some ideas.

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