All Forum Posts by: Rob Lee

Hey @Sharon Cain,

My wife and I got started by turning our first home into our first rental almost 10 years ago. We still own that property today. It's been an excellent investment. We've bought and sold several properties since then. How flexible are you?  If you're a homeowner consider turning your current home into a rental. You know the house and you know the neighborhood.  

If you have yet to buy your first home start there.  Living in the house allows you to purchase with a smaller down payment.  Live in the house for at least a year then buy your next one.  This is the easiest way to get started.  Investing isn't a race. Just get started. A Realtor who's also an experienced investor can be your greatest asset. Hope this helps.

Rob  

It really comes down to where your numbers work best.  Run the numbers on similar properties in both locations. The DFW market remains competitive.  Properties under $400K are still receiving 10+ offers.  If cash flow is your biggest goal consider a house hack. 

Hey Jacob, 

Multifamilies are few and far between here. They do exist but maybe about 2-3% of all of the homes here. We mainly build single-family and townhouses. An average one will run about 350k or more and everyone wants so you will be in for a fight. I'm in a couple of fights right now for clients! Hope this answers some of your questions. Oh FYI, unfortunately, the 1% rule doesn't exist here anymore especially on multi families unless you have a huge down payment or another strategy. Good luck man! 

Hi David,

A description of the ADU might be helpful. Does it have its own bathroom and kitchen? On another note, there are rent by the room leases for house hackers so I don't see why you wouldn't be able to have a separate lease for the ADU.

Rob

@Robert Gomez this is a great way to get started! My wife and I personally did this to get started in real estate investing. You can purchase it live there for a few years and fix it up while you're there slowly. We still own that place today and it's our money maker with a few others! Good luck my friend. FYI I'm a realtor here in Dallas if you don't already have one!

Frisco is one of the nicest and one of the most desirable areas in the north Dallas area. You will need a MINIMUM of 350k and you will need to come out swinging to beat the competition by going well over asking most likely.

Unfortunately, I do not see Frisco letting up anytime soon since it’s such a popular place to live! I think it will be even more expensive 5 years from now. You are better off looking at more up and areas like Bruce mentioned. Good luck!

@Lisa Walker gave you the 411 regarding TX. Congratulations and Good luck! 

Welcome to DFW! The market is starting to slow down and the holiday season definitely presents an opportunity. However, if your relocation was the result of an industry change qualifying for financing may be a challenge. Reach out to a TX or national lender for preapproval before getting too invested in your search. IME, mortgage lenders have been easier to work with than big banks. Best of luck in your search.

Rob

My wife says that cowboy boots are universal. Nobody is wearing cowboy hats on the Dallas side. That's definitely Fort Worth. LOL! Per the other responses, you want to be more specific about the area if your goal is to arrange a meet-up. Best of luck!

Sounds like people have issues with the interest rates around hard money lending. Hard money lending may allow you to move faster but you have to understand that there's a trade-off. We have not had a need for hard money lending. We used cash-out refinance on our properties that experienced great appreciation while the tenants paid down the mortgage. We were able to benefit substantially without losing the equity in our properties. The properties have continued to increase in value. 

The rent covers the mortgage, insurance, taxes, property management fees, and maintenance. We could easily take advantage of cash-out refinance again in the future. If rents come down we are not overleveraged. We don't own 100 properties and we didn't need 100 properties to achieve financial independence. In the end, real estate investing works best when you choose the investment vehicles that allow you to achieve your personal goals. Take advantage of what works for you and leave the rest.

Rob