House Hacking Plan in 3 years

[Duy Xuan Do]

Hello everyone in BiggerPockets,

I have been listening to many episodes of the BiggerPockets on how to invest my money in the Real Estate world in the past 3 months. I have a plan and I'm not sure if I'm going to the right direction. Please correct me if anything I say about my plan is wrong and I'm willing to learn/listen to more advices here.

I'm currently living in PA will be paying off my house this year (only $20,000 left). My house worth $325,000 right now and my family is definitely moving to Dallas Texas in the next 3 years. My plan is to sell my current house which will give me around $300,000 and in the next 2 years me and my wife will save another $100,000 which come to the total of cash we have in hand is $400,000. When we get to Dallas, TX we want to buy a duplex of $450,000 with a %5 down payment (est. $40,000 including closing cost) under my wife and my name since we will be living in 1 unit and rent the other unit out. Then we want to buy another duplex with the same price and a 5% down payment under my mom's name since she will be living in 1 unit and rent the other unit out. After 2 Duplexes ($80,000), we left with $320,000 so we want to buy another 2 Duplexes (same price) with 25% down payment ($112,500/each) since we are not living there for long-term rental which left us with $95,000 left. We will put that $95,000 into the emergency fund and continue to save money until our next purchase. In conclusion we will have the total of 4 Duplexes in the first year when we move into Dallas, TX. Is this possible? Please let me know if my math and my plan are missing out some important laws/rules that I haven't heard of. I know I'm still pretty news to Real Estate world so this is just the plan for my family in the next 3 years, we definitely moving to TX.

Thank you everyone

[Denver McClure]

Hey @Duy Xuan Do, I own several duplexes in Dallas, and I can tell you that you won't find too many at the $450K price range. If you do, they will most likely need a fair amount of work. As for your plan to snag 4 in one year, that just comes down to your finances at that point and the interest rate. I'd recommend speaking with a fellow househacker like @Matt Solis.

[Duy Xuan Do]

Quote from @Denver McClure:

Hey @Duy Xuan Do, I own several duplexes in Dallas, and I can tell you that you won't find too many at the $450K price range. If you do, they will most likely need a fair amount of work. As for your plan to snag 4 in one year, that just comes down to your finances at that point and the interest rate. I'd recommend speaking with a fellow househacker like @Matt Solis.

 Thank you Denver for the advice. I'm looking at the property 5113-5111 Ave #G, Fort Worth, TX 76105 and it is the duplex for $419,990 right now. I was just looking around on Zillow and saw this so I'm not sure how accurate this is because I'm not familiar with market language in TX. Let me know if I'm looking at this address wrong. Thanks again Denver.

[Matt Solis]

Quote from @Denver McClure:

Hey @Duy Xuan Do, I own several duplexes in Dallas, and I can tell you that you won't find too many at the $450K price range. If you do, they will most likely need a fair amount of work. As for your plan to snag 4 in one year, that just comes down to your finances at that point and the interest rate. I'd recommend speaking with a fellow househacker like @Matt Solis.

 Thanks for the shout @Denver McClure! @Duy Xuan Do, your logic makes sense on the house hacking front, but I would really encourage you to explore other types of rental strategies, such as mid term renting or rent by the room. You'll be able to get properties in better areas and also have better cashflow. For example, the duplex you mentioned in Fort Worth is in a pretty rough area, and you'd only be getting $1750 per side which isn't going to approach the 1% rule. Where as you could buy a nice 3/2 in Carrollton for the same price, be in an awesome area, and rent out the whole house for $5200 as a mid term rental.

Reach out anytime if you want to talk shop.

[Duy Xuan Do]

Quote from @Matt Solis:

Quote from @Denver McClure:

Hey @Duy Xuan Do, I own several duplexes in Dallas, and I can tell you that you won't find too many at the $450K price range. If you do, they will most likely need a fair amount of work. As for your plan to snag 4 in one year, that just comes down to your finances at that point and the interest rate. I'd recommend speaking with a fellow househacker like @Matt Solis.

 Thanks for the shout @Denver McClure! @Duy Xuan Do, your logic makes sense on the house hacking front, but I would really encourage you to explore other types of rental strategies, such as mid term renting or rent by the room. You'll be able to get properties in better areas and also have better cashflow. For example, the duplex you mentioned in Fort Worth is in a pretty rough area, and you'd only be getting $1750 per side which isn't going to approach the 1% rule. Where as you could buy a nice 3/2 in Carrollton for the same price, be in an awesome area, and rent out the whole house for $5200 as a mid term rental.

Reach out anytime if you want to talk shop.

I was just thinking about Airbnb in Downtown Dallas and saw your message. This is awesome and I really appreciate your advices on the plan. Thank you so much Matt.

[Wale Lawal]

@Duy Xuan Do

Your plan to invest in Dallas, TX duplexes involves selling your house, saving, acquiring a property, and acquiring four duplexes for $400,000, with the remaining cash being $60,000. Your key considerations include loan approval, property management, market research, legal ownership, tax implications, and an emergency fund. Consult a knowledgeable agent, seek professional advice, and have a flexible plan.

Good luck!

[Duy Xuan Do]

Quote from @Wale Lawal:

@Duy Xuan Do

Your plan to invest in Dallas, TX duplexes involves selling your house, saving, acquiring a property, and acquiring four duplexes for $400,000, with the remaining cash being $60,000. Your key considerations include loan approval, property management, market research, legal ownership, tax implications, and an emergency fund. Consult a knowledgeable agent, seek professional advice, and have a flexible plan.

Good luck!

 Thank you so much for the advice Wale. I definitely keep listening and reading books about real estate in the meantime. 

[Wale Lawal]

Quote from @Duy Xuan Do:

Quote from @Wale Lawal:

@Duy Xuan Do

Your plan to invest in Dallas, TX duplexes involves selling your house, saving, acquiring a property, and acquiring four duplexes for $400,000, with the remaining cash being $60,000. Your key considerations include loan approval, property management, market research, legal ownership, tax implications, and an emergency fund. Consult a knowledgeable agent, seek professional advice, and have a flexible plan.

Good luck!

 Thank you so much for the advice Wale. I definitely keep listening and reading books about real estate in the meantime. 

 All the best.

[Drew Sygit]

Another example of the importance of understanding Property Classes and market geographics!

[Duy Xuan Do]

Quote from @Drew Sygit:

Another example of the importance of understanding Property Classes and market geographics!

Thank you Drew.