All Forum Posts by: Jacob V.

Welcome Bertrand! There's a lot of us from DFW between house hacking, flipping, and rentals so you're in a good spot.

I use the Bigger Pockets book on estimating rehab costs as a guide when I'm not sure on something - it breaks down projects well and has been a good reference point for paying contractors.

I'll also just Google costs and can usually get a good idea. 

When shopping recently (in Texas) I've seen between 10.9-12.9% and 2-3 points; I/O; 12 mo term at around 70% ARV and 85% LTC.

I'm going to have a 5 bedroom coming to market in Q4 that will be a perfect house hack and think any 3 + Den or 4 + office around $325k or under (where you can get the 5th bedroom) will still take out all living costs. 

Napkin math and assumptions are:
$700/room rent
~$2900 all in payment with taxes, insurance, etc at 5% down on a $325k

With an ADU you could also try and get more than $700/mo which is will improve the numbers.

Originally wrote this for Vickery place - in Vickery Meadow I think you're generally in a good spot and close to some great neighborhoods and as you mentioned all that development is a solid sign.

My only red flag would be that it's an apartment, but if you're comfortable with it you're in a great spot for future growth.

Hey Gabriel, I invest in Irving currently (buying under 250/260 with ARV's north of 300) and would recommend it for proximity to Downtown Dallas and DFW airport.

I'm an agent but happy to recommend lenders and subcontractors via PM.

Cap rates are going to take longer to correct and rents are flat to slightly lower YoY.

Too much goes into rents and cap rates to be able to point to one thing - but if you compare it to somewhere like Austin (or any recently booming city) it's not seeing the big dip in prices or rents afflicting other markets where tons of supply is coming on AND demand is slowing.

I would call it a leveling currently as opposed to supply outpacing.

I've seen garage conversions in Dallas city limits (including just making it a bedroom), but haven't seen a carport.

Are you house hacking already? If so you could move to another house, and negative cashflow ~$400/mo with another owner occ loan, and it'll positive cashflow when all 4 bedrooms are rented.

Then you'd have 2 cashflowing as opposed to one with higher cashflow if that's the goal.

If you're set on the carport - like everyone said look out for zoning.

Thanks for the reply! Going in cap was a 3 or 4 (~$36/sqf which was great compared to new build) and exit cap was still under 6, probably around 5.5

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $225,000
Cash invested: $60,000

Had to do my first eviction on this property, but sheriffs will be out next week after a successful trial and looking forward to getting this one fixed up!

What made you interested in investing in this type of deal?

I own a long term rental nearby and bought this for $150k less than the value of the other. Similar square footage and bedrooms.

How did you find this deal and how did you negotiate it?

Found this from a wholesaler

How did you finance this deal?

Hard/Private money - 10.9% and 2 points

How did you add value to the deal?

Going to do paint, HVAC, drywall work, remove a window unit, and add laminate flooring

Lessons learned? Challenges?

We lost our first trial and had to appeal to the county court - learned to not leave it to the lawyers and instead to be in court as well.