House Hack Search in North Dallas- Request for Advice

5 Replies

Hey everyone, I am a new investor that is in search of my first deal. I have looked extensively through the MLS to identify potential deals and have identified a few potential targets that I wanted to run by you all.

But first, I want to introduce myself for the first time on BiggerPockets. I have been a huge fan for a while and am excited to finally move towards my first deal. My name is Adam Beasley. I recently graduated from TCU in Fort Worth with a degree in Entrepreneurial Management and started my job at a management consulting firm in Dallas two weeks ago. My long term real estate goals are to buy at least one rental property per year until I gain over $50k per year in passive income. Short term my goals are to buy my first property before the end of 2017. It is great to meet you all!

Second, I want to list out my search criteria, because they are a bit unique. 

  • It will be a house hack, which means I am not searching for a C- property. I have mostly searched at a B range. 
  • My max budget is up to $250,00 (5% down, 4% interest rate, 30 year conventional)
  • I am most concerned with long term cash flow from the property and plan to hold it for a long time.
  • My roommates work across DFW, so I am attempting to be as close to this sliver (west of Greeneville Ave., South of 635, east of 35, and north of 30). It can be slightly past those barriers, but that is the dream.
  • I am comfortable doing some additional renovations on my own or hiring out subcontractors. 

I know this is an expensive area, which has led me to struggle identifying decent deals, especially on the MLS.

The potential properties that I have found are: 

  • 3146 Royal Gable Dr. 
    • $165k list price
    • No clear rental comps but I would estimate around $1.6k
  • 10243 Goodyear Dr.
    • $199k list price
    • Maybe $1.8k rental comps
  • 12529 Keyport Dr.
    • $199k list price
    • $1.7k estimated rents
  • 3056 Old North Rd. 
    • $192.5k list price
    • $1.65k estimated rents
  • 6133 Summer Creek Circle
    • $207k list price
    • $2.4k rental comps
    • $100/mth HOA

These seem to be the best 3 bedroom places that I have found in the area.

If any investors in the area have any feedback on better rental comps for those properties, any leads on potential deals, or general advice for navigating the hot Dallas real estate investment landscape, please let me know. I am excited to hear from you all.

- Adam Beasley

North Dallas doesn't really cash flow very well. Pick a strategy that better fits the market, maybe a livein flip.

@tyler Herman, thanks for the advice. Sadly, my job will require a lot of hours and travel so I am not sure I will be able to put the time necessary into a flip. In your opinion, what would be the closest area to my described geography that would cash flow?

@Adam Beasley I think you have two goals for this property that are not compatible -

1. Find a cash flowing buy and hold property
2. In one of the most expensive areas of Dallas

You are going to have to sacrifice one or the other. If you want your primary residence to also be a good long term buy and hold, you need to look further out (possibly some of the inner-ring suburbs such as Farmers Branch, Garland, etc.) or East Dallas (probably East/Southeast of White Rock Lake).

If you absolutely must live in this area, I would suggest you rent your primary residence with your roommates and go buy an investment house elsewhere.

@Adam Beasley I will be here all week this week and working all week if you'd like to meet up. We can look at your list, look at the rental comps, and determine a good strategy for you. Your rental comps look high to me for most of this area. Typically anything with monthly HOA is going to kill your return. Very few places work well for investment with that kind of HOA fee.

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