Buying Rental Properties - What To Look For

8 Replies

I'm a new investor working on my business plan. I'm in the Dallas-Fort Worth market, specifically Hurst, Euless, Bedford, North Richland Hills, and I'm wondering what numbers to look for in rental properties. I'd like to get cash flow of $300 month after all expenses, including property management, vacancy reserve, maintenance, mortgage, taxes and insurance (did I miss anything?).

Is that possible/realistic. If so, what kind of numbers would purchases on a typical 3/2/2 need to look like?

Hi @JT Taylor ,

Welcome aboard BP! I'm based in McKinney and looking for similar deals just a bit south of your target areas (Ft. Worth, Arlington, Irving, etc). The deals you are looking for are definitely out there regularly, especially SFH. Multi-family margins tend to be tighter from what I've seen. Start emailing agents on listings that fit your criteria and invest time with those that are the most responsive & attentive. Use the rental calcs here on BP. The greater margin deals move very quickly so be ready! Good luck and keep in touch!

Cheers,
Matt

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Thanks Matt for the tips. I appreciate the reinforcement. I'm working on my blueprint and in the stage of working up the numbers and then checking those numbers to see if I'm in the right ballpark. Then its all out massive action!

I'll be employing a wholesaling strategy at first to build capital and move homes that don't fit my long term strategies, although they might be perfect for flippers. Let me know if you want to be on the buyer's list I'm currently building for those.

Thanks again!

JT

I look for a property that can provide additional revenues, such as special storage space, special parking, and any other amenity whereas you can charge addition fees for.

I would first look to decide what your end goals are with your acquisition model. For example is it cashflow, appreciation, debt pay-down, tax depreciation.. are you looking for negative geared properties or positive geared.. 

These question are so vital to ask and know the answers to prior to buying anything.. Its like driving around without a map or destination in mind. 

The odds of anyone on here telling you what is and is not a good deal without knowing what your goals are seems very hard to imagine. At best they can tell you what their buying rules and goals are but that may not have anything to do with your goals.

Take the time and figure this out first before you buy your first piece of property or you may end up like I did and buy 35 of the wrong homes and lose a lot of money getting out of many of them all because I did not have a plan or criteria prior to buying, the odds of me succeeding were extremely low in not impossible.

Steve I tried to send you a message and it failed because we are not connected.  I am new so I don't know the ropes yet.  He is my message please pardon my interrupting this discussion.

Steve,

I read your answer to someone's question (this one). I was wondering if you could point me to a good resource for information on making a plan with target purchases. I am a retired math teacher in florida. I have my investment plan money to invest. I want to purchase rental or flip properties to ultimately replace my salary as a teacher to the tune of about 60K per year or at least 5K per month as my first goal. I would like to see the portfolio value grow as well. Any help would be appreciated.

Allan