New investor from the Dallas area.

New investor from the Dallas area.

Denton, TX · Member since 2017 · 3 posts · 1 vote
I commented on a couple of other local threads already, but wanted to say howdy myself. My wife and I just got serious about REI (she took lots of convincing). I just turned 30 and she is 29. We both have good jobs, but were looking for alternative retirement investment opportunities. We have about 4 months of debt payoff left until all we owe on is our personal home and a single car. At that point, we will be in a position to comfortably save about $50,000 over 36 months. My original thought was to invest in SFR's only because I considered them easier to sell if we ever chose to do so. But, it seems that it is often easier to get a good ROI and cashflow from MFR's so I may change the plan. 40 months seems like a lifetime, but I have a LOT to learn between now and then. We both live and die by the numbers, so I feel confident that when we do buy it will be a good buy. I am also planning on getting my RE agent license (part time) within the next year and applying all commissions to that savings to shorten the time frame if possible. I am hoping my market isn't really as highly priced as what I see on Zillow and Realtor and such, because most of those prices don't turn a profit with market rent. I am hoping that once I have more contacts in the industry (both from networking and from being an agent) that better priced properties will be easier to find. What advice would you give a novice like me?
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  • Professional · Dallas, TX · Member since 2016 · 54 posts · 33 votes
    9y
    Good luck finding good deals in DFW. I've been in the market for 5 years now. Good inventory is VERY hard to come by. Doubtful an agent will be able to help you off of the MLS. I stopped buying on the MLS 2 years ago (for cash flowing properties). Anything that works for the numbers will have to be purchased off market or at auction. If it's on MLS the numbers don't work. Good SFR is hard enough to find here let alone multi family in decent areas that spins off a good yield. Not trying to discourage you though. Feel free to PM me for some tips on finding good deals.
  • Los Angeles, CA · Member since 2017 · 1 post · 0 votes
    9y

    Not that my post offers any help, but I am in a very similar position to you OP. Looking at my first opportunity to get serious about REI, with a move from Los Angeles to DFW being the starting point to get into SFR. I was excited until I realized that prices have skyrocketed, B/C grade properties are selling above value, and the high property taxes (steadily increasing) on top of that inflated pricing leave little room to make a profit.

    I lived in NE Dallas during the mid-2000's, and prices in my former neighborhood have increased close to 100% since I sold in 2007. It just seems completely artificial to me, fueled by out-of-state transplants going to work in Plano, and low rates.

    All that said, I am still very new at this and I am probably missing various opportunities in DFW. Currently reevaluating my decision to invest in Dallas and may end up taking a closer look at Houston?

  • Investor · Sugar Land, TX · Member since 2017 · 97 posts · 71 votes
    9y

    We're in Houston, and I get the sense that it's similar to what you're describing in Dallas. There's not a lot of MF available, and in the last five years, the retail price for SF has jumped quite a bit in the more desirable areas.

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