Newbie looking for my first investment duplex in DFW

Dallas, Texas
Multi-Family and Apartment Investing
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Newbie looking for my first investment duplex in DFW

Brandon Craig
Member since 2022 · 51 posts · 23 votes

Hi Everyone,

 I am looking to find my first duplex in DFW that is hopefully a B class so that my mom and brother can move in. Breaking even on the deal is totally fine because I plan on using Brandon's stack method and grabbing a 4plex next where I can make some cash flow on. (2-4-8-16-32 will hopefully get me to my FI # which is about $5,000/m)

My lender requires 25% down for a conventional loan because I won't be living in the duplex as I enjoy renting in Northeast Dallas for the amenities/lifestyle. I have a real estate agent who is auto-emailing me multi-family homes in DFW and the only ones I see that I feel comfortable with my mother walking around outside are 300k or more. This would require about 75k down. I currently only have 20k, but can have this in 1 year.

1) Is there another way to get this done earlier? Another loan? Maybe 20% from another lender to get in with 60k down?

2) Where are the best locations in DFW to invest? My realtor said mid cities are good, like North Richland Hills or Arlington. Also Fort Worth.

3) Has anyone helped out relatives or had them as tenants? My mother is a low income widow that I want to make sure lives in a property that I own so that I can help her when needed as she gets older. My brother is also lower income currently and would like to be able to assist him too when needed and at least pay me as a landlord versus a random person.

4) I have only seen about 10 or so duplex in the portal my agent has sent me.. is it really this scarce? I have not even seen a single 4 plex or higher, only a few duplex's.


Thank you!

Brandon

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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
4y

1) Is there another way to get this done earlier? Another loan? Maybe 20% from another lender to get in with 60k down? If you find a property that needs repair you may be able to use a hard money loan then refi to traditional 80% LTV mortgage. @Andrew Postell is the DFW investment loan guru. I bet he has a 20% down payment option.

2) Where are the best locations in DFW to invest? My realtor said mid cities are good, like North Richland Hills or Arlington. Also Fort Worth. "Best" is such a subjective term. If your agent understands what you are looking for just follow their lead. Duplexes are not near as common in DFW as other parts of the country. And they tend to be in low income, rougher neighborhoods.

3) Has anyone helped out relatives or had them as tenants? My mother is a low income widow that I want to make sure lives in a property that I own so that I can help her when needed as she gets older. My brother is also lower income currently and would like to be able to assist him too when needed and at least pay me as a landlord versus a random person. If you are going to lease to family be 100% ok with them not paying you. This is a great way to ruin relationships. Will your brother grow as a person If you plan to prop up your brother? Or will you condition him to be ok with his station in life?

4) I have only seen about 10 or so duplex in the portal my agent has sent me.. is it really this scarce? I have not even seen a single 4 plex or higher, only a few duplex's. Duplexes are not near as common in DFW as other parts of the country. And they tend to be in low income, rougher neighborhoods.

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  • Andre Crabb
    Investor · Tampa, FL · Member since 2017 · 205 posts · 92 votes
    4y
    Quote from @Brandon Craig:

    Hi Everyone,

     I am looking to find my first duplex in DFW that is hopefully a B class so that my mom and brother can move in. Breaking even on the deal is totally fine because I plan on using Brandon's stack method and grabbing a 4plex next where I can make some cash flow on. (2-4-8-16-32 will hopefully get me to my FI # which is about $5,000/m)

    My lender requires 25% down for a conventional loan because I won't be living in the duplex as I enjoy renting in Northeast Dallas for the amenities/lifestyle. I have a real estate agent who is auto-emailing me multi-family homes in DFW and the only ones I see that I feel comfortable with my mother walking around outside are 300k or more. This would require about 75k down. I currently only have 20k, but can have this in 1 year.

    1) Is there another way to get this done earlier? Another loan? Maybe 20% from another lender to get in with 60k down?

    2) Where are the best locations in DFW to invest? My realtor said mid cities are good, like North Richland Hills or Arlington. Also Fort Worth.

    3) Has anyone helped out relatives or had them as tenants? My mother is a low income widow that I want to make sure lives in a property that I own so that I can help her when needed as she gets older. My brother is also lower income currently and would like to be able to assist him too when needed and at least pay me as a landlord versus a random person.

    4) I have only seen about 10 or so duplex in the portal my agent has sent me.. is it really this scarce? I have not even seen a single 4 plex or higher, only a few duplex's.


    Thank you!

    Brandon


    Hey Brandon, I'm happy to help you learn the locations in DFW that are best for what you're looking for. Shoot me a DM if you want to jump on a call or something!

    DFW was near the top of my list a few years ago 👍

    1Reply
  • Alicia MarksPro Member
    Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes
    4y

    Hi Brandon,

    I would say you likely want to have her closer to you if you want the ability to help out when needed. Dallas is a little trickier because the duplexes are often in rougher areas or high end house conversions. Ft Worth and Arlington do have some good options, but there aren't a lot. Also be careful when looking because they self half duplexes here too, so read the description. 

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    1Reply
  • Denver McClurePro Member
    Financial Advisor · Flower Mound, TX · Member since 2018 · 659 posts · 479 votes
    4y

    Hey @Brandon Craig! Do you happen to have an Individual or Joint taxable account? If so you can use a Margin Loan against your portfolio value to borrow cash at a low interest rate. I personally use Interactive Brokers for myself and my clients who are looking to acquire rental properties without holding so much cash. If you hold cash, you get crushed by inflation. If you invest your cash into a taxable account, your portfolio should ideally grow and produce dividends/interest. You'll just use a Margin Loan when you want to acquire a new deal or complete renovations.

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  • Sean McGrady
    Real Estate Agent · Frederick, MD · Member since 2021 · 18 posts · 21 votes
    4y

    Brandon what your doing for your family is amazing! It sounds like your agent has put you on a drip campaign with houses automatically being sent to you based on the criteria that were inputted. That may be the reason you have only seen 10 duplexes. I am not from the area so I do not know if that is completely right, but I would check in with the agent to make sure she has everything you would like to see in a property checked off. 

    1Reply
  • Brandon Craig
    OP
    Member since 2022 · 51 posts · 23 votes
    4y

    Hi Denver, 


    I do have a taxable account via Fidelity where I have my 20k invested in a total market index fund. Can you elaborate a bit on that process?

    Thank you,

    Brandon

    0Reply
  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    4y

    1) Is there another way to get this done earlier? Another loan? Maybe 20% from another lender to get in with 60k down? If you find a property that needs repair you may be able to use a hard money loan then refi to traditional 80% LTV mortgage. @Andrew Postell is the DFW investment loan guru. I bet he has a 20% down payment option.

    2) Where are the best locations in DFW to invest? My realtor said mid cities are good, like North Richland Hills or Arlington. Also Fort Worth. "Best" is such a subjective term. If your agent understands what you are looking for just follow their lead. Duplexes are not near as common in DFW as other parts of the country. And they tend to be in low income, rougher neighborhoods.

    3) Has anyone helped out relatives or had them as tenants? My mother is a low income widow that I want to make sure lives in a property that I own so that I can help her when needed as she gets older. My brother is also lower income currently and would like to be able to assist him too when needed and at least pay me as a landlord versus a random person. If you are going to lease to family be 100% ok with them not paying you. This is a great way to ruin relationships. Will your brother grow as a person If you plan to prop up your brother? Or will you condition him to be ok with his station in life?

    4) I have only seen about 10 or so duplex in the portal my agent has sent me.. is it really this scarce? I have not even seen a single 4 plex or higher, only a few duplex's. Duplexes are not near as common in DFW as other parts of the country. And they tend to be in low income, rougher neighborhoods.

    McCaw Property Management4.4905 Reviews
    WebsiteView Page
    3Reply
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