All Forum Posts by: Hunter Peterson

Hello BP.

I am currently renting a home in Plano, TX. My lease ends in March '19, and I'd like to determine the viability of the following "live-in flip" plan from experienced investors and lenders in DFW:

1. Acquire outdated, fixer upper property North of Dallas as my primary residence using FHA 203K loan.

a. New to DFW & no RE team yet, so no complete tear down properties.

b. Look to find best deal during 2018 holidays (ideally close on a home before 2019).

2. Renovate from Jan-March '19. Must move in by April 1. 

3. Depending on the housing market, duplicate process and turn this property into rental or just sell in 2020. 

I have the capital to put a 20% down payment on a nice home, but I'd rather leave as much money available as possible to see where the RE market goes and invest those dollars in other REI opportunities as I build my network and set strong, well-informed target parameters for investment properties.

Thank you in advance to anyone who can provide their insight on the "North of Dallas" market and the feasibility of this plan! 

-Hunter

@Andy Webb @Ronald Rohde 

I think that $10k is a much bigger factor in CA than TX with the way things are set up. 

If you don't mind sharing, could you provide the rough numbers on what that tax situation looks like in TX? You're suggesting it would take a $2M property to amass more than $10K in property tax? From my little understanding, I thought the property tax was higher in Texas than in California. 

@Kenneth McKeown @Ronald Rohde @Omar Khan @Andrew Sheppard @Mike Burkett @Andy Webb

I really appreciate all the insight! I definitely understand the positives to buying, but because I'm relocating, not a seasoned investor, don't have a network/team in place, need a place to live in the next week, and prioritize a clean, successful transition both at work and at home, I will be renting in a neighborhood I feel comfortable in to begin. I also was advised by my tax professional that renting is a better idea than before due to the new tax laws that cap interest and property tax deductions at $10K.

However, I'm very interested in learning more about the opportunities out here and where people are seeing success. Are there any good meet ups in the DFW area?

Thanks @Andrew Sheppard I’ll definitely take a closer look. Much appreciated. 

Hello DFW BP! I'm newly relocated to Dallas, selling my home in California, and looking to rent in the Plano area for proximity to work and a number of other reasons. I'm looking to rent because several people I trust have told me that they wouldn't touch the housing market in Texas with a 10 foot pole right now due to the high prices and the flood of people relocating to the state making the future unpredictable. That, plus the need to acclimate to a new city before making any long-term real estate decisions.

However, I have heard that some people are still seeing success in places like Bishop Arts district when it comes to fix and flip properties. New city and new job kind of preclude me for throwing that much time into real estate right now, but it still definitely interests me to understand the market.

If anyone out here is still buying in this incredibly high market, would you mind sharing your reasons why and what's working? Thank you!

@Marian Smith thanks for the advice. I think that's exactly what I'll do.

@Paul B. thanks for the help. I'll look in those areas for opportunities.

@David Ivy thank you for all the helpful info. I replied to your DM.

@Joe Funari I appreciate the info. It looks like I'll be moving to Plano/Carrollton/Frisco/McKinney area. My company will be located just east of Carrollton. My first focus will be to get my bearings and find a place to live (probably rent to start), but I'd be very interested in building my network for opportunities in the not so distant future. If you have any leads on great places to rent I'm all ears!

@Ronald Rohde after some very basic searches it seems there are some great opportunities. And the pricing compared to CA is insane! Thanks.

@Carol Bloom I appreciate the advice. I think it will be most apparent that TX is not CA when I looking for the beach!

I have been offered a position today to relocate to Texas (most likely Austin or Dallas) and its looking like it will be a quick turn around. I'm currently in So Cal, and would most likely sell here and buy there. I'd like to invest in a personal residence for a new family, as well as look at investment opportunities. I wouldn't be opposed to combining the two with the right live-in multi-family opportunity with plenty of privacy between units. More realistically, I'd probably be looking for the right neighborhood/property to fix, force equity, and live in while simultaneously looking for multi family opportunities to invest in, fix, BRRRR, etc..

I'd be curious to hear from BP Texans with tips, advice, etc. on any and all of the following...

1. Best sub-markets to focus in on in the greater Austin and/or DFW for both personal residence and multi-family investment opportunities.

2. What strategies are working right now. What do you see as a solid game plan for the next 3-5 years?

3. What do I not know about Texas real estate that I should? What are the best resources to start with?

Thank you in advance for your help! Hoping to meet and add value to all the great deals I hear about in Texas!

@Cameron Campbell I'm in a similar boat, but less than $250k equity and I'm the owner occupant so no need for 1031. Interested to see what markets look promising like those suggested above. Really curious if anything in California makes sense, or if it's really that crazy and just nowhere makes sense right now.

@Ali Boone 

1. I'd consider either renting a place to live in or buying a place that would be a better rental candidate when I move out

2. Ideally I'd find a multi unit without shared walls and live in one of those, having the collective rents of the other cover my living expenses. Unfortunately, doesn't look like there's anywhere in coastal So Cal that would come close to those numbers. 

I bought at $491k in 2014 (including 40-50k in upgrades, floors, etc. that were factored into the loan). I'm working on a professional estimate. But based on rough comps in my neighborhood, I'm seeing anywhere from $550k - $600k. My HOA is $340 a month and Mello Roos are 0.6% on top of 1.1% property tax. My overall monthly number between mortgage, tax, and HOA is about $3,100 before utilities and insurance. I think I'd be lucky to get that number in rent. 2 bed 2.5 bath 1557 sq. ft. attached townhouse.

@Thomas Rutkowski I tend to agree on capturing the equity. The question for me is how to re-invest that money and still have somewhere to live. Unfortunately, my financial state isn't quite where I can capture the equity, purchase a new place, and also invest. More than anything just trying to build my network and be ready when the moment arrives.