New to real estate ...please be kind. Thank you

Real Estate News & Current Events
5yFollow

New to real estate ...please be kind. Thank you

Sheetal Patel
Member since 2019 · 5 posts · 5 votes

Hello everyone 

I have worked very hard to finally post in a forum like this that i am ready to make my first investment in a rental property. 

i have excellent credit score and am based out of DFW area in Texas. Given the current housing market situation, can you please recommend an area / zip code to look for investment properties? I dont mind if they are outside the DFW area for single family homes /duplex. 

Thank you for your time today .

3Reply
108 views

Most Popular Reply

Richard Smith
Member since 2019 · 3 posts · 11 votes
5y

No need to pay a fee.  Find someone who is an investor, wholesaler or a real estate agent that would be willing to walk you through some deals and buy them lunch or coffee on a regular basis.  Force yourself to do a number of deals on paper before making an offer.  ALWAYS hope for the best but plan for the worst.  Get proficient at accounting software.  Learn journal entries.  Learn how to calculate and auto post depreciation.  Get your line of credit lined up.  Get with a local bank, not a big bank.  If possible sell the house before you buy it. Always have an exit strategy.  A seasoned mentor will guide you.  Where to find a mentor?  Go work for a wholesaler for free for 60 days.  Then, ask him to put a deal together for you.  Owning investment property is hard work.  It gets harder when yo do not know what you are doing.  Be humble and always be willing to learn.

5Reply
See this reply in the discussion

28 Replies

Jump to latestLatest
  • Richard Smith
    Member since 2019 · 3 posts · 11 votes
    5y

    Why are you wanting to buy rental real estate?  What model are you using?  What do you know about managing real estate?  These are the basics that must be answered.  IF you cannot answer these questions then you are not ready to get into the rental real estate market.  I think I just saved 3 years of your life!  Get with someone who can mentor you.  If they are good they will help you to buy your first property.  

    5Reply
  • Sheetal Patel
    OP
    Member since 2019 · 5 posts · 5 votes
    5y

    Thank you Richard for taking the time to respond . I am open to a mentor at this point and have also started listening to podcasts to educate myself . 

    The amount of information available can be overwhelming so having a mentor is definitely something I need. 

    Any ideas on how to find one or any mentors open to help (ofc for a fee ) , please do reply. 

    Thank you 

    1Reply
  • Richard Smith
    Member since 2019 · 3 posts · 11 votes
    5y

    No need to pay a fee.  Find someone who is an investor, wholesaler or a real estate agent that would be willing to walk you through some deals and buy them lunch or coffee on a regular basis.  Force yourself to do a number of deals on paper before making an offer.  ALWAYS hope for the best but plan for the worst.  Get proficient at accounting software.  Learn journal entries.  Learn how to calculate and auto post depreciation.  Get your line of credit lined up.  Get with a local bank, not a big bank.  If possible sell the house before you buy it. Always have an exit strategy.  A seasoned mentor will guide you.  Where to find a mentor?  Go work for a wholesaler for free for 60 days.  Then, ask him to put a deal together for you.  Owning investment property is hard work.  It gets harder when yo do not know what you are doing.  Be humble and always be willing to learn.

    5Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y

    Why are you even considering buying now when the market is topped out and on a crazy train ride? Do you have money to give away? I know there are folks here that say anytime is ok to buy, because market appreciation will get the price back up and at least you're in the game. But why leave money on the table that you'll never get back?

    Lay low for a while and learn, learn, learn....

    4Reply
  • Sheetal Patel
    OP
    Member since 2019 · 5 posts · 5 votes
    5y


    @Bruce Woodruff

    Thank you for responding. Let's just say that it's been a long road to come to where I finally am so no money to giveaway. You are right , it does seem like a crazy time . But I also hear that it won't get better anytime soon . Lots of conflicting info on the internet so don't know what to believe . 

    1Reply
  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    5y

    Hi Sheetal, welcome to the forums. Have you considered investing out of state? Usually rent does not scale with price, so cheaper markets can give you better cashflow. More expensive markets like DFW often appreciate faster, so more expensive markets can give you better total returns. 

    Just something you may want to think about as you figure out your investment strategy. 

    4Reply
  • Sheetal Patel
    OP
    Member since 2019 · 5 posts · 5 votes
    5y

    @Shafi Noss

    I am open to investing out of state as well . Would just want a reliable property management company . You mentioned cheaper markets in your post , would you please suggest some markets worth looking at please ?

    Thank you for your time 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Sheetal Patel:

    @Shafi Noss

    I am open to investing out of state as well . Would just want a reliable property management company . You mentioned cheaper markets in your post , would you please suggest some markets worth looking at please ?

    Thank you for your time 

    out of state zero experience pretty risky. you are putting all your financial well being in the lap of others.. so as long as you can absorb a deal that does not go right then you can risk it.. if a deal goes a little wonky and it wipes you out.. then you might want to rethink you risk profile. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Sean Conklin
    Member since 2021 · 4 posts · 5 votes
    5y

    Hello everyone! This is my first post/reply so please excuse my inexperience. I am relatively new to real estate investing as well. Last summer I purchased a few properties (one SFH and one multi family) and I am closing on another SFH next week. The hardest part is getting started. I definitely don't have all of the answers and am still learning every day, but I love it so far. Congrats Sheetal for trying to dive into the business. As you and others have mentioned, the market is pretty high right now so be careful on what you purchase. The only reason why I am purchasing another one at the moment is because I was contacted by an old boss of mine with a deal on their property or else I would probably stay away at the moment as well. The best of luck to you!

    2Reply
  • William Mitchell
    New to Real Estate · Gilbert Arizona · Member since 2021 · 31 posts · 18 votes
    5y

    @Sheetal Patel

    Hello and welcome to Bigger Pockets! I think you are in the right place to learn! My wife an I are just starting our journey and have been just trying to learn everyday. That's what I would recommend. The more we learn the better idea we have for which route we want to go. There are so many ways to do this so it is easy to get overwhelmed. Just keep listening, watching and read as much as you can and your vision will start to take shape. We listen to podcasts, watch webinars on here and their you tube channel and bought a few of their books from Amazon that you can also get here at the "Bookstore" tab at the top. 

    2Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @Sheetal Patel:


    @Bruce Woodruff

    But I also hear that it won't get better anytime soon . Lots of conflicting info on the internet so don't know what to believe 

    Well at least you're grabbing the reins and jumping on the horse, congrats to you for that...so many people just sit around and do absolutely nothing! 

    A couple of thoughts: 1) Don't go to the internet for advice. While there are forums like this with real people who have done this before, there are many more who are just giving you their opinion. Some want your money, others just want to sound intelligent. 2) Listen to people who have been through this RE correction/crash a few times and profited or lost from it. Nothing against people in their 30s but listening to them for advice on the current market is at best, dangerous. All they can do is opine. The last crash was '09 which was 12 years ago and they were in their teens.....

    3Reply
  • Kelvin Gibbs
    Member since 2021 · 3 posts · 0 votes
    5y

    @Sheetal Patel nice to meet you Ms. Patel, I’m a new wholesaler also in the DFW area. I would love to connect and maybe workout a deal in the near future. Goodly j on real estate!

    0Reply
  • Lawrence BriggsPro Member
    Investor · Austin, TX · Member since 2020 · 367 posts · 377 votes
    5y

    Welcome to the BP forum! It's great that you are seeking knowledge before jumping into real estate investing. I believe Andrew Postell on here is in the DFW area @andrewpostell

    Podcast Guest on Show #269
    0Reply
  • Brad S.
    Investor · Pasadena, CA · Member since 2017 · 613 posts · 523 votes
    5y

    I agree with @Bruce Woodruff . Be careful with the advice you get from those who have nothing to lose by giving inexperienced advice, no matter how well intentioned it may be. I have a couple of major RE cycles. I bought and sold at exactly the wrong time in the first one and did the opposite in the second one. I wish I had held more properties in this latest up cycle. Anyway, first thing i'd say is get clear on your goals. Are you going for capital growth, cashflow, combination of both. Do you need to have the cashflow now, or are you planning on growing the cashflow to some level in the future, etc. This may help you focus on location and/or type of property/ies you should focus on. And also learn how to evaluate locations and properties. 

    Remember RE is local. If you knew how to evaluate a market, you'd have a clear idea of whether to consider buying in certain markets now or not. In the downturn there were markets that still appreciated and vice versa.  

    For longterm rentals, some things to know are, how to calculate affordability of an area (a function of median income, interest rate, median home price), look at migration patterns (are people moving into or out of an area, what are the trends), business climate (are businesses moving to the area or out, what type of industries, income level, etc), rental amounts,  that's all I can think of at the moment.

    I wish I would've known more about evaluating markets when I bought my first few properties. 2 of the first rentals I bought, went absolutely no where when I finally sold them about 17 years after I bought them. I sold them for almost exactly what I bought them for, after I had to put some money into them. So, they did not add anything to my net worth, even after all that time. So, don't believe anyone that says just buy anything, anywhere and sit back and wait, and you will get the benefit of since appreciation. 

    4Reply
  • Lawrence BriggsPro Member
    Investor · Austin, TX · Member since 2020 · 367 posts · 377 votes
    5y

     @Sheetal Patel @Andrew Postell is in the DFW area. 

    Podcast Guest on Show #269
    0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    @Sheetal Patel

    I'm in the DFW area and would be happy to connect and give free advice. I'm very bullish on buy n holds in this area. I'm closing on my 11th SFH tomorrow in ft worth. I like Arlington, Grand Prarie and ft worth. But there are plenty of great areas around here. PM if you want to connect.

    1Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Sheetal Patel thanks for posting.  @Lawrence Briggs thanks for the mention.

    If you live and work here then I would recommend starting here.  There are many real estate groups where people network and learn from each other.  We also have one of the best real estate markets in the country.  We are the 4th largest metro in the US....and TONS of other benefits as well.  Generally speaking we target properties that are $250k and lower.   Those make the best rentals here for single family homes.  Anyway, ask away if you have any other questions.  Thanks!

    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    @Sheetal Patel   Lots of opportunity in DFW area for buy and hold.   Buying can be tough, but rents are moving up quickly.   I say look at the markets just around DFW....draw a big circle around DFW and look around the edge and outside of the edge....so places like Decatur, Denton, Aubrey, Anna, Van Alstyne, Sherman, Princeton, Heath and others.

    2Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    5y

    @Sheetal Patel I've worked with hundreds of new investors and am happy to walk you through what it looks like in my market. I'm hoping that you can develop an understanding of different questions to ask and what things to compare in different markets. My market is different from yours in that it has lower price points and it's more focused on cash flowing today and long term appreciation rather than big exciting jumps in appreciation. We can discuss it all if we talk. Just let me know if you'd like to chat. Exciting that you're working on getting started! 

    1Reply
  • Aaron Clough
    Real Estate Agent · DFW Metroplex · Member since 2020 · 9 posts · 4 votes
    5y

    @Sheetal Patel welcome to BP! As someone relatively new myself, can't say that I have all answer to all scenarios BUT I'd highly encourage you to get really good, early on, analyzing deals. Our market here is DFW is extremely competitive on the retail and investor side but deals are still getting done every day! This way you'll know which one have a shot and very quickly the ones that won't work for you. Good luck!

    0Reply
  • Jake Williams
    Rental Property Investor · Minneapolis, MN · Member since 2019 · 22 posts · 15 votes
    5y

    @Sheetal Patel Welcome! 

    You don't need to have all of the answers to get started. This is the best place to educate yourself and even find out how to educate yourself. The BP podcast and BP Rookie podcast are great places to start with entry level information and very valuable information. 

    Take advantage of the folks above who are offering their support. BP is great for networking and getting the answers to tough questions. Find some local meetups and start networking and engaging with those people who are already doing what you hope to do. Good luck with your investing! 

    1Reply
  • Joseph Sawoszczyk
    Rental Property Investor · Member since 2021 · 10 posts · 2 votes
    5y

    Welcome! I am also new to RE investing myself. I decided just two months ago to focus on RE investing and since that time I have been pouring 100% of my free time into learning as much as I can about the various different strategies. My approach is to have solid answers for the questions that are posed by several of the post respondents. I wish you best of luck in your journey and I look forward to hearing about your progress in the future. 

    0Reply
  • Sheetal Patel
    OP
    Member since 2019 · 5 posts · 5 votes
    5y


    Thank you everyone for being so supportive ! You guys are a wealth of information . I am spending the time and have been scratching through BP and everyday is a new learning .

    @Kiera Underwood I have sent you a message , please do check when you get a chance .

    Thanks  

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Sheetal Patel:

    Hello everyone 

    I have worked very hard to finally post in a forum like this that i am ready to make my first investment in a rental property. 

    i have excellent credit score and am based out of DFW area in Texas. Given the current housing market situation, can you please recommend an area / zip code to look for investment properties? I dont mind if they are outside the DFW area for single family homes /duplex. 

    Thank you for your time today .

     Columbus OH is a great market to invest in, huge appreciation and cash flow. We also have a bunch of good PM's and Contractors (and alot of bad ones too)

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Sheetal Patel:

    Hello everyone 

    I have worked very hard to finally post in a forum like this that i am ready to make my first investment in a rental property. 

    i have excellent credit score and am based out of DFW area in Texas. Given the current housing market situation, can you please recommend an area / zip code to look for investment properties? I dont mind if they are outside the DFW area for single family homes /duplex. 

    Thank you for your time today .

    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free