Hey BiggerPockets members! My name is Nick Taylor, I am currently 21 years old and have committed myself to becoming a real estate investor. I am currently looking into the DFW metroplex as I was born, raised, and also live here while I finish my degree at Southern Methodist University. I have begun building my core foundation of real estate and I am currently looking to invest in single family or potentially house hack as I am graduating within the year! I would appreciate any book recommendations/tips to get started!
Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
6y
Welcome to the madness! Are you planning to buy a house and do updates and fixes? Are you going to do that work yourself or pay other people to do it?
A good strategy for someone young and single is buy a run down house, move into it, and fix it while you live there. Then, after 2 years, sell it for a profit. Repeat. The IRS helps you by allowing you to take the gains tax free.
Thanks for the reply Neil! I think your suggested strategy is a great idea and something I am willing to do. I see you are very knowledgeable in tenants, so my question is, if I were to find a good deal on a run down property that I want to house hack, what are some criteria for good tenants and what do you think is the best way to find them? Would it be smart to have friends fill those spaces? My worry with house hacking is that the tenants will feel like you are taking advantage of them...
Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
6y
Yard signs and Craigslist work to find people. I use TransUnion SmartMove to run a credit check and background check before leasing, it has been pretty good for me. Make sure you have a signed lease and be very clear on the terms and enforce them. NEVER rent to friends and family, that is a problem just waiting to happen.
I appreciate the advice! I had a feeling renting to friends was probably a bad idea but I'm happy you verified that. Any tips on how to go about finding my first deal in Dallas? I understand I will have to overcome a competitive market but I would appreciate any tips!
Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
6y
Finding a property at the right price is hard right now. Too many players in the market. I don't have any advice on that since I am having trouble finding them for myself right now too.
Thank you for the recommendations Nicholas, I've heard great things about the BRRRR strategy/book by David Greene! Which one is your favorite out of the ones you recommended?
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
6y
@Nick Taylor they're all very different! I just finished the Kristy Shen book and found it very inspiring. She's not a real estate investor, but she and her husband built a $1M portfolio and "retired" in their 30s. And she has a very inspiring personal story. David Greene's book is indeed excellent, it's basically a how-to.
Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
6y
All of the books will tell you to buy a cash flowing rental but none of them will tell you how to do that and how hard it is to find one in the Dallas market.
That's the dream! But I like the point Neil made... At what point is a solid "foundation" built, in which you should take the next step being action? Personally, that's a fear of mine is being under-educated but I don't want it to hinder my ability to start.
New to Real Estate · Dallas, TX · Member since 2019 · 86 posts · 41 votes
6y
Set for Life by Scott Trench! Good for outlining what to do but, as said above, doesn't help you get a deal in a fast market like Dallas. On the other hand, DFW doesn't show a lot of signs of slowing down (from what I've read), so there's a chance you could get something on appreciation, but relying on that is risky.
I am also wondering the same thing... However, I do kinda want to stay in Dallas, might have to look up in OK if I am not planning on house hacking my first deal.
I'll definitely give it a read! I saw your post too the other day, seems like everyone is moving to Dallas! With that there is definitely more potential but like you said, also more risk. Have you decided what you're going to do yet?
Set for Life by Scott Trench! Good for outlining what to do but, as said above, doesn't help you get a deal in a fast market like Dallas. On the other hand, DFW doesn't show a lot of signs of slowing down (from what I've read), so there's a chance you could get something on appreciation, but relying on that is risky.
Rental Property Investor · Richardson, TX · Member since 2019 · 120 posts · 82 votes
6y
@Nick Taylor I agree with Neil on the strategy. I am a RE investor in DFW and have developed a system for off market deals through SEO. Let me know what kind of property you will be looking for and the area and we will make a note.
Dont feel bad about asking friends for rent. You will be providing a cheaper option to them then living in an apartment on their own and it will be fun. I did this back in the day and it was a great way to pay a mortgage down fast.
Lender · Colorado Springs, CO · Member since 2018 · 241 posts · 97 votes
6y
@Nick Taylor Nick, what are you studying at SMU? I'm needing some help. Maybe we can help each other until you graduate. Please reach out to me if you might have some interest in talking.
That's awesome! I would be very interested in learning more about how you use that system! But as for properties, I may be too picky, but depending on the area, I would like to find single family homes that haven't be well kept or maybe are very outdated, and are 175k-230k range. This is my initial criteria, I think my next big step is learning more specifics about SFRs and the Dallas market in general so I'm certain those numbers will fluctuate.
So if you're using SEO to find these off market deal, I'm assuming you're taking on more of the wholesale approach to investing? As for friends, man I would love to do the whole thing and be around my friends but I'm gonna have to side with Neil on this one, I think the risks outweigh the rewards but I appreciate your insight!!
@Nick Taylor I agree with Neil on the strategy. I am a RE investor in DFW and have developed a system for off market deals through SEO. Let me know what kind of property you will be looking for and the area and we will make a note.
Dont feel bad about asking friends for rent. You will be providing a cheaper option to them then living in an apartment on their own and it will be fun. I did this back in the day and it was a great way to pay a mortgage down fast.
Hey Mike, I would love to help you out! To answer your first question, I am currently majoring in Economics. I think it also compliments my real estate ambitions nicely as I am learning how to understand different markets and I have found that the things I am learning in class are helping the learning process of real estate become more approachable, giving me a better chance of success! Thank you for the reply!
@Nick Taylor Nick, what are you studying at SMU? I'm needing some help. Maybe we can help each other until you graduate. Please reach out to me if you might have some interest in talking.
So right now I'm focused on developing a solid foundation. I began with knowledge of general real estate so I kind of have an idea of what each piece does, now I am doing more narrow focused research based on what niche I want to enter. On top of that, I supplement with the BiggerPockets podcasts, books from real estate to self-help, and asking/talking to people about real estate. I still need to develop my analysis skills and soon start looking for properties!