Ok, so i have been looking for a multifamily dwelling to owner occupy in the Dallas Ft.Worth Grapevine Arlington Desoto area for a few months now. One of the main reasons i am going the multi-family route is to create the additional income as well as having a tenant pay majority of the mortgage. Problem is , it seems like there are no freakin options! i feel like i'm searching for a unicorn when taking budget(200k) ,location and availability to move in into consideration. Also i do understand most duplexes are not in the best neighborhood. If a decent home comes on the market its bought cash right away. I've went as far as reaching out to property management companies to see if they are dealing with any owners who have properties they would like to sell.
This all brings me to my question of : What are some things that i could be doing to increase my chances of finding a deal maybe before it even hitting the market or just not feel so stuck in this search? I am 100% open to any advice criticism ideas Help!
I looked at the DFW market this past summer when I was preparing to relocate to East TX. It seems so competitive, as you observe, that I decided to not move to the DFW area. The multifamily market seem especially competitive.
Hit the road.
Seriously. Driving for dollars is highly regarded by some folks around here. Read this blog post.
Bryce- may I pass along a realtor to you? You're definitely looking for a tough deal but this guy might be your unicorn - he's very good at what he does!
@Bryce Ray You just have to be quick and always looking. I've closed on three duplexes in the last 6 months alone just by being the first offer in on a property. These are all MLS deals - and just being aggressive with great terms in regards to the offer. These were for 285-440k duplexes though - and I can tell you this, you're never going to find a duplex for 200k in most North Dallas areas (and definitely not Grapevine), unless you're finding it off market and in absolute awful condition. The market is just too competitive and too hot at the moment... and with it also being the slow time in regards to real estate, not a lot of properties are being listed.
@Bryce Ray Not to be a jerk but it sounds like you're bringing a knife to a gun fight. At the moment, from what you're saying, you can't compete on price (with your ceiling), can't compete on terms (against all-cash offers), nor can you compete of flexibility (as one of the units has to be open for you to move into) for your given markets. If I'm in your shoes, Step 1 is to figure how far I'm off on price. If you're 10% away from being competitive and properties you want sell for $220K then I'd keep at it. Be fast and you might be able to snag a deal. However, if you viewed the same property that @Kenneth McKeown did and he paid $285K, well...being fast won't solve that issue. I know Texas is a non-disclosure state but maybe there will be some "sold" details that pop up on Zillow that can at least tell you how far you are away for competitive pricing.
I could also throw out general advice like "drive for dollars" or "market to off-market out-of-state homeowners" but I have to believe that Dallas/Arlington/etc. has a TON of that activity already. Not that it won't work, but odds are you won't get any kind of a quick turnaround or pull some unit mailing list that the wholesaler/flipping ecosystem has bypassed.
@Bryce Ray The "Dallas Ft.Worth Grapevine Arlington Desoto area" is a massive market to cover.
I would start by narrowing the geography that you would like to purchase a property. You want to know the market, brokers and comps backward and forward to find the best deals. For example, you could define your search in Arlington to 303-Fielder-I-30-360. Building relationships with the brokerage community and "driving for dollars" in a defined market will give you an edge and help you win good deals.