Questions from very new beginner: How to start in DFW
Hi, DFW experts
I am a newbie to both Bigger Pocket and Real Estate investment and am absorbing a lot of information on BP now and learning from all experienced experts here. Really appreciate all for sharing valuable experience and knowledge.
I relocated to Dallas from Bay area last year and am having a healthy W2 job that I would like to continue for at least 10 years (or more) but would like to start REI and build my own portfolio of equity in real estate for financial freedom. (rather than early retirement).
Now, I live in Frisco (Coit and 121 highway) and have no experience in direct real estate investment except REIT and crowdfunding. I bought my primary homes twice (one in bay area and the other one in Frisco, TX) and sold my first home in bay area only once in my entire life.
With that said, my current strategy is to buy and hold multiplex and single family home for a long run that can generate monthly cash flow, and I would like to expand the units slowly.
Now, as a very uneducated, baby investor (and relatively new to DFW area), I have some questions and would like to hear your opinions.
1. I went through the forum and learned that it's very hard to find a good deal "these days". Market has been good, and housing price is continuously increasing and at peak across most of country. I understand DFW is a big metro covering wide areas, and each city/county may vary widely, but is 1% still applicable in DFW in general? What % (monthly rent / purchase price) is a rule of thumb number that is generally used in DFW area when considering a good deal (or not bad deal)?
2. Similarly, is there common break price point in DFW that typically makes positive profit/cash flow? I believe various population are spread out in various rent range but think at certain purchase price it may be very difficult to find tenants or to make positive or even profits.
3. Considering DFW population with wide range of incomes, I strongly believe that there will be always rent demand in any area at any rental price, if the price is set at a proper level. From rental websites, I see $1000 - $2000 is the most popular rental price range for single houses depending on the condition, size and location. Small condo and APT seems to range from $500 to $900 in general. Is my study reasonable?
4. What type of property at which price range do you recommend to extremely beginners like me?
5. What do you think of those properties for a beginner? Those are very cheap and small condos that I would not expect appreciation in the future but generates good cash flow with 40-50% down payment. Thanks to the positive cash flow, I see low risk and think it can give me a chance to get into the REI water and learn through experience. Or is this type of condo/APT not a favorite investment regardless due to no appreciation, costly HOA, etc? Any opinion/feedback would be greatly appreciated!!
a) 9617 Walnut st APT 4105, Dallas TX
b) 3121Park Ln APT 1126, Dallas TX
6. I will further invest my time and dig into more threads and information on bigger pocket, but if you have any valuable tip how to start for newbie like me, please share with me.
Thank you all for your time!!