DFW Buy and Hold Investors: Are you still cash-flowing?
I am looking for some guidance.
My wife and I are wanting to buy our 1st buy and hold investment property.
We have two options, out-of-state or in our backyard aka DFW.
However, based on what we hear and the properties we analyze it is a challenge to find properties that can potentially cash flow because of high property taxes.
What are some ways you are still managing to buy properties that still cash-flow with high interest rates and high property taxes? Are you finding the properties yourselves? Asking for seller financing?
Any guidance is greatly appreciated
@Daniel Mendez it does start with your finances, how much you are bringing to the table? no two deals are the same if financing is different.
of course you don't need to share the #s here, it's for you to understand and pick the lender you are going to work with. then the rest will fall into place.
If youre looking at LTR, make sure youre getting current rents from a RE Agent such as myself, rents have increased a few hundred dollars across the DFW metroplex on all rentals in the past year or two. Also, consider the condition of the property when using the BP calculators, the calculators can throw off a deal at times. I have rentals and I have not had vacancy in years. Lets chat! Message me if you like :)
Quote from @Daniel Mendez:
I am looking for some guidance.
My wife and I are wanting to buy our 1st buy and hold investment property.
We have two options, out-of-state or in our backyard aka DFW.
However, based on what we hear and the properties we analyze it is a challenge to find properties that can potentially cash flow because of high property taxes.
What are some ways you are still managing to buy properties that still cash-flow with high interest rates and high property taxes? Are you finding the properties yourselves? Asking for seller financing?
Any guidance is greatly appreciated
Rates are the bigger issue and you're going to run into that everyhwere. Not sure where you're looking out of state, but I've only ever bought in and around Dallas because it has consistent demand. You can buy in the middle of nowhere and cashflow $500/mo and never see any appreciation, or you can buy something to break even in Dallas and see 20% appreciation over the same time span.
Have you explored an ARM or interest only loan?
Quote from @Michael Castro:
Quote from @Daniel Mendez:
I am looking for some guidance.
My wife and I are wanting to buy our 1st buy and hold investment property.
We have two options, out-of-state or in our backyard aka DFW.
However, based on what we hear and the properties we analyze it is a challenge to find properties that can potentially cash flow because of high property taxes.
What are some ways you are still managing to buy properties that still cash-flow with high interest rates and high property taxes? Are you finding the properties yourselves? Asking for seller financing?
Any guidance is greatly appreciated
Rates are the bigger issue and you're going to run into that everyhwere. Not sure where you're looking out of state, but I've only ever bought in and around Dallas because it has consistent demand. You can buy in the middle of nowhere and cashflow $500/mo and never see any appreciation, or you can buy something to break even in Dallas and see 20% appreciation over the same time span.
Have you explored an ARM or interest only loan?
@michael castro where in DFW are you buying where you achieve $500 monthly cash flow? Is this for SFR or multi family?
I don’t see the math you are describing so I’d love to explore- DFW is massive and I don’t care about appreciation as much as cash flow.