All Forum Posts by: James Wesley

Yes, zoning is definitely on top of mind, but I believe this can qualify as a ADU which is 1000 sq ft or less...think I am right there. Yes, this is also close to downtown in an area with a ton of redevelopment. I took averages from Craigslist and Rentometer to gauge the rental market in that area.

Thanks SO much for chiming in!

Hi there, 

This will be my first purchase as a part of purposeful real estate investing. And as you all know, your first time can be quite scary. :)

Looking for your input on if I should move forward. Summary:

* leveraging my primary home's equity through a HELOC for the down payment and necessary rehab

* Property: SF home which will be easily subdivided into a duplex. This subdivision will require one unit to have a bathroom moved (W/D added) and a kitchen added. Each unit will be a 2 bedroom with about 1000sf each. There's a basement with a lower ceiling which could be built out as another unit or used for storage. SF zoned, but might be up zoned to MF as right across the street is MF and the area is changing.  Panel needs to be split out as well

* Listing Price is $650k (looking to place a escalating bid to $700k in $3k increments; Average area rents are around $2400+-.

* Financing - putting 25% down; 30 yr investor loan at about 5.25% interest rate

* I have building experience and will be trying to most of the renovation work myself

Thoughts? Questions?

Do you have any recommendations and good experiences with a Property Manager in Dallas? I have a single-family that needs local boots on the ground since I live in Seattle. My current PM just collects rent and I have to chase them down for things.

Thanks! James

Thanks everyone for the input here and validating the calculator's results. Another challenge with Dallas is the 2.72% sales tax...impacts cash flow greatly, plus the rents aren't high enough to support the purchase.

I'll keep on truckin' along searching in both markets (Seattle and Dallas) and adjust my strategy for seeking out deals. It was a good learning experience seeing what's going on in Dallas. Cheers!

The numbers are like -$800 cash flow, so yeah you all validated and aligned with the calculator that this is a poor deal. I lived in Dallas for 7 years and currently have my old SF rented out. So I already have a Realtor, Handy-man and Property Manager setup here, so I have a good base to do deals here rather than setup a new team.. It's easier to cash-flow here than in Seattle (of course with the right deal).

Do you have thoughts on the values that should be inserted in the calculator?

*Vacancy

*Repair & Maintenance

*Capx, as well as future assumptions:

*Annual Income

*Annual PV Growth

*Annual Expenses Growth

*Sales Expenses

Thanks for the quick reply. Yeah I am working with a Realtor and this duplex is in Oak Lawn (Perry Heights). Super nice and big property and units. Downstairs is a 3-2 and up is a 3-1. The bath up could be redone but kitchen is solid as the rest of the unit. Also has a double car garage as well which could be an upsell. Thanks again for chiming in here!!

First time multi-family investor here. Using the Rental Property Calculator But having a hard time reconciling the number since I keep coming up with negative cash flow regardless of how I update the numbers. Thoughts on this Dallas duplex in great area?

$659k list price

$4100 in current rents..close to average. 

I'd put 25% down with 5% loan.

Thanks!

James

In the Dallas Area for Duplex's and Four-plex's what values to you like to add to each of these 8 boxes?

Any reason www.citybanktexas.com is coming back as an internet threat?

Thanks Lane and Mike for your insights! Those are helping fill the gaps for me.

Mike - My wife is definitely on board with this journey (I wanna stay married :) ). That's why I am sticking with the HELOC for now since I only pay on what I use, rather than being stuck with a 30 year note of higher monthly payments. And yeah, agree that Fix n Flip isn't ideal here but definitely wanting to focus on distressed properties (long-term rentals).