All Forum Posts by: Diego A.

You have to think that you want to learn in the process. Being out of state, you will learn all but bad things of the process and make you think if you made the right decision.

You have to start low and close, meaning trying to house Jack locally is the best.

An FHA loan requires you to live in the property.

You are in a tricky situation. 

Garland is not a place for AirBnB right now. DFW AirBnB is getting expensive to operate and find good deals due to all the HOA regulations that are being implemented..

If the property won't cash flow in LTR, then your option is limited to listing it, but I don't exactly know without looking at the numbers, as you can figure out some month to month strategy to lease the unit for a while.

One thing that I always tell my clients is that when you are doing AirBnB or any STR/MTR, you are entering into the hospitality industry.

I have a similar situation and I approved them as soon as they show proof of funds.

In Dallas Metroplex I am constantly finding good deals in Fort Worth.

I wouldn't recommended to add extra cash every month to pay for the mortgage. You have to work the deal where in the worst case you break even. $300 will convert on $500 or more for repairs and additional costs.

You have to find a good deal and partnering with an agent to help you achieve that is key.

I would recommend to talk with an exterminator first. They would be able to give you advise on that. I have sealed with both situations but not in the same house 

Hi @Claudia Stewart I would recommend the same than Greg, for first time investors.

That will always depend on the risk tolerance that you have. Have you talked with your insurance broker? 

Insurances are getting crazy high now, so you have to shop around a lot to get a good deal and it is one breaking point to generate cash flow.

I would ask for a 12 to 24 months bank statement and the last two tax returns. I have a situation that I didn't do that, and they didn't know how much they could afford. We signed the contract and then they were always late on the payments.

Hi Luna,

Congrats on getting started. This is my two cents.

I am getting a similar situation with my new investors as well.

#1 Agents can provide you the houses based on your criteria, or you get some houses and share with them. At the end, you are making the decision, but you have to understand the time that an agent will take to run the number. In my case, per house and being in the industry for more than 7 years takes me at least 30min to run a good number per house. Killing them with a lot of properties will discourage them to work with you in the long run. Remember that the agent is a partner in this situation.

#2 Offers, this is a common situation for new investors that wants to go down to make the deal work. That is no how the market works. You have to understand what is your strategy in the short, middle, and long term. In DFW, I am seeing few cash on cash with a 7%, for SFH it is more likely a 2% to 4%. For flip deals, there is a average of 80% ARV, but it will all depend on where you would like to be and buy. When a situation where an investor still want to do an offer, I talk with the listing agent to understand if they are going to consider such an offer before submitting a formal one. As previously was said, it depends on many factors.

DFW has a lot of new investors that are getting crashed by wholesalers to enter in the business, so they are just making a little 10% or less in a deal. I just listen to biggerpocket episode 956, this is an extreme example, but it is what I am seeing here in DFW currently mainly with new investors that don't want to work with an agent.

To add to what @Bruce Lynn said, I was working a deal recently in Dallas and I found that there are many restrictions on renting by a room, mainly because you will become a hotel at some point (not sure about the restrictions) in my case I found that the subdivision had a restriction to rent one room. 

Make sure to do the due diligence for this.

Hi Brian,

Cash buyers in the current market is difficult. Mainly in the wholesaling. I have not found one opportunity yet that gives me an ARV of 75%.

Any professional investor will tell you that if you go over that the amount of work that you have to put doesn't worth the return.

My latest was found in the MLS where we got a better deal than what I was getting from wholesalers.

Let me clarify that the wholesaler business is needed, but it seems at the lack of deals they are putting the pressure to then investors. 

What I found recently was a couple that bought a deal with a wholesaler on which it was told that it will make an 80% ARV (with lack of knowledge they believe what the wholesaler told them)

After they completed the work they made a small 5% in the deal so they told me that the exit that business immediately.

They needed a partner or more training to understand how it works, but I feel that when you don't know, you don't know so people is getting advantage of that.