All Forum Posts by: Michael W. McCord

@Mel Stone definitely a capital intensive business which is why I saved up for 10 years before jumping in. Always deals to be found even in this red hot market but definitely harder without capital. Take your time and analyze deals and hopefully run into someone making things happen to whom you can bring value.

Hi Lily! I am from Richardson next door to Garland and I know that while Garland house prices make rental cash flow easier, appreciation has historically been minimal compared to the pricier northern suburbs like Plano/Frisco. Garland is blue-collar and schools are OK but not rated as well as other suburbs. Average house price in Garland is 250-300k for a decent 3/2/2 but not a lot of new builds since it's an inner suburb that was pretty much developed by the 1980s. If you want newer builds at a similar price point, look to Garland's close neighbors Rowlett, Sachse or Wylie. Good luck!

Agree with the duplexes in Richardson/Garland especially with one or two streets in an otherwise SFH neighborhood. Hate to say but they are indeed a blight on the neighborhood. I can understand why zoning prevents more being built. What I don't understand is why the investor/owners don't at least update them or put a little landscaping in to attract a higher class of tenant? I an constantly browsing rental listings for market research and I don't think I've ever seen an updated interior of a duplex.

Hi Gray! Good intro story. Always love seeing the diversity of backgrounds on BP. Though you seem like a CRE expert already! I'm just next door to you in Richardson so maybe we'll bump into each other sometime. Cheers!

Good job guys! I did the same budgeting 120k for my first rehab and actually spending closer to 170k So it looks like you sold your SFR and are now living in two units of deal #3? Are you paying yourselves rent?

You'd be hard pressed to find a 3/2 with a two car garage for 250k west of 75 in Richardson. Even wholesale deals are going for 250k or more for a 3/1 with a 1 car garage

Hi Drew! I actually funded everything myself but I did have a hard money person on standby in case my reno budget went crazy. I don't plan to refinance anytime soon since I paid 5k for the mortgage insurance to reduce the down payment to 10% and a refinance would make me start over. However once my equity position in the house exceeds 20% (in about 4-5 years) I plan to refinance to free up capital. Or sooner if I see another opportunity to get my next property. While I think high end houses are a great investment I would advise you to be careful if you are just starting out since you risk tying up lots of capital and the rental income often doesn't justify the high home prices. I did this primarily to diversify away from paper investments and to ride the appreciation wave. Cash flow is secondary. Good luck in Tampa!

Richardson actually has quite a few duplexes that are in hot areas like Richardson Heights and Canyon Creek. It is highly unlikely there will be any more duplexes allowed to be built in those gentrified areas so if you can find one then you will own something that is grandfathered in and should appreciate nicely

Canyon Creek in Richardson has a lot of custom houses that don't feel cookie cutter. Plus lots of windy hilly streets with mature trees you don't easily find anywhere else

Hi Rob,

I ended up renting for my asking price of 3900/mo and in fact just posted rehab details in the Deal Diaries forum here if you're interested.

https://www.biggerpockets.com/...

Mickey