The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Baylor3217 on July 12, 2013, 11:40:45 PM
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Has anyone done this with any success?
I'm looking to diversify beyond just stocks and a few other things I have to generate more cash flow. Most of what I've seen is nowhere near the 1% of the value of the home type monthly rents you hope to get.
If you're in the business of doing this and that is the options you have, do you simply wait? i'd be fine with even a single family home but that seems to be a challenge as well based on what I'm seeing on zillow.
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I've been looking in that area lately (looking in both DFW and Houston, since the Vegas market has dried up), so I'm familiar with the numbers. I've been seeing right around the 1% rule, or possibly right under it. 2700 rent duplex (1350 per side) for ~260-280k.
Those are on new or close to it properties, so on a little older you can do a bit better, as long as the neighborhood is still decent to support the rents.
Nothing compelling enough for me to pull the trigger yet, if that says anything.
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what resources are you using to look for those properties and what areas of the metroplex have you been looking at? Obviously it's a very diverse area with extremes on both ends as far as quality of neighborhood.
I've been looking in that area lately (looking in both DFW and Houston, since the Vegas market has dried up), so I'm familiar with the numbers. I've been seeing right around the 1% rule, or possibly right under it. 2700 rent duplex (1350 per side) for ~260-280k.
Those are on new or close to it properties, so on a little older you can do a bit better, as long as the neighborhood is still decent to support the rents.
Nothing compelling enough for me to pull the trigger yet, if that says anything.
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A few areas. Some outlying suburbs, as far as the actual DFW metroplex: North Dallas.
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A few areas. Some outlying suburbs, as far as the actual DFW metroplex: North Dallas.
What resources or websites do you use to look for prospects?
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Where all are you counting as North Dallas?
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A few areas. Some outlying suburbs, as far as the actual DFW metroplex: North Dallas.
What resources or websites do you use to look for prospects?
The usual websites (realtor.com, redfin, etc.), though I don't use those much in searching, mostly after I've identified a property, main resource is networking and connecting with other investors.
I'm not there, so boots on the ground is key.
Were I local, my search would look different.
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Where all are you counting as North Dallas?
For those in Dallas proper, "North Dallas" has a very specific meaning. I generally think of North Dallas as south of 635 and between 75 and 35. Far North Dallas means north of 635 and south of 190. Not sure what Arebelspy thinks it means.
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Where all are you counting as North Dallas?
For those in Dallas proper, "North Dallas" has a very specific meaning. I generally think of North Dallas as south of 635 and between 75 and 35. Far North Dallas means north of 635 and south of 190. Not sure what Arebelspy thinks it means.
Yes, I did not mean north of Dallas, I meant North Dallas (which is why I capitalized as I did) - i.e. that specific meaning. Thanks for clarifying for me kbb, as I would have had to look up the specifics of that. :)
It is a quite nice area, IMO.
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Where all are you counting as North Dallas?
For those in Dallas proper, "North Dallas" has a very specific meaning. I generally think of North Dallas as south of 635 and between 75 and 35. Far North Dallas means north of 635 and south of 190. Not sure what Arebelspy thinks it means.
The Hubs says Beltline not 190 for Far North. North of Beltline becomes Addison.
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Where all are you counting as North Dallas?
For those in Dallas proper, "North Dallas" has a very specific meaning. I generally think of North Dallas as south of 635 and between 75 and 35. Far North Dallas means north of 635 and south of 190. Not sure what Arebelspy thinks it means.
Yes, I did not mean north of Dallas, I meant North Dallas (which is why I capitalized as I did) - i.e. that specific meaning. Thanks for clarifying for me kbb, as I would have had to look up the specifics of that. :)
It is a quite nice area, IMO.
Just NOW saw your response. And yes, it's a lovely area. Not great public schools, though, FYI. Most living in this area sends their kids to private school. Highland Park/University Park have excellent public schools, but it's a very small area with high property values.
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I'm in the Austin, TX area. We are hoping to start flipping in the Austin/Dallas/Houston area once we get to FI/ER. I do get e-mails from an investor I found from bigger pockets, but I've never seen anything that would interest me, even for a rental.
I totally agree that it makes a big difference to have boots on the ground! Arebelspy, PM me if you plan on coming to ATX - we'd love to meet up :)
My best returns right now are in Ohio.
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Where all are you counting as North Dallas?
For those in Dallas proper, "North Dallas" has a very specific meaning. I generally think of North Dallas as south of 635 and between 75 and 35. Far North Dallas means north of 635 and south of 190. Not sure what Arebelspy thinks it means.
The Hubs says Beltline not 190 for Far North. North of Beltline becomes Addison.
Addison is pretty small. Tiny even. I lived in an apartment a few hundred yards south of George Bush just east of the tollway that was still city of Dallas. The city limits is a really odd, squiggly line out there.
In the old days, Addison was also just a marketing slogan. (I haven't lived in the area for a long time, so this may be different now.) It was fully owned/operated by Dallas. The police force rotated in and out of Dallas.
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I've been looking at duplexes/fourplexes in the area too and it definitely seems to top out around 1%. I've seen some larger multi-units that seem to have better numbers but are either outside of my price range or questionable areas and I'm not sure its something I'd want to get into either way.
I can't make any claims at being a real estate mogul - but would be happy to meet up with anyone in the area to share findings/ideas if you want to PM me. Might even be interested in finding an investing partner...
Arebelspy - if you need some boots on the ground help, let me know.
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I'm in the Austin, TX area. We are hoping to start flipping in the Austin/Dallas/Houston area once we get to FI/ER. I do get e-mails from an investor I found from bigger pockets, but I've never seen anything that would interest me, even for a rental.
I totally agree that it makes a big difference to have boots on the ground! Arebelspy, PM me if you plan on coming to ATX - we'd love to meet up :)
My best returns right now are in Ohio.
Will do! I actually may have a trip out to Dallas/FW in a week and 1/2 or so to do some due diligence on an apartment, but will let you know if I end up in the Austin area.
Can I ask where in Ohio? I'm working on a 13-house deal in Columbus right now personally, but it's iffy..
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Will do! I actually may have a trip out to Dallas/FW in a week and 1/2 or so to do some due diligence on an apartment, but will let you know if I end up in the Austin area.
Can I ask where in Ohio? I'm working on a 13-house deal in Columbus right now personally, but it's iffy..
I'll be out of town the first week of September, but if you are in Dallas anytime before or after that, please let me know. We don't mind driving, maybe we could meet somewhere in the middle for dinner. Just not in West, TX! ;)
I have two SFH's in Akron. We've had the PM discussion before, that's really the key. The first PM was horrific. I fired him at the end of last year, and got a much more proactive person in place. He's a bit expensive, but he quickly was able to evaluate the properties and the market, and we repaired both properties. He works fast, evaluated them as good potential for Section 8, and within a month, both properties were filled and have been consistent this year. Not sure if I'm ready to do more in Akron, still trying to feel out if this is the PM I want to grow my business with.
I have maybe 13 doors in Dayton. Did a lot of shopping very fast, the numbers work out really well there. If you work w/the right people, you should be able to buy a HUD and rehab it for rental in the $25K/door range. Depending on the area, I'd say $650/mo is avg rent for a 2 BR SFH.
That being said, I had some serious setbacks this year after I fired my old PM. You were kind enough to refer me to a new PM, and he's been pretty good overall. In six months we did a ton of necessary repairs/rehab, and I'm at 100% occupancy right now. Attention to details is a bit lacking though, and I'm trying to figure out if I'm too big of a client and he's been trying to manage the new load, or if it's a character flaw. I have a backup PM ready if need be, but I really hope I don't have to switch PM's three times in a year! And if I do, let's hope it's the last time.
I have an amazing PM for my upstate NY rentals, but the numbers out there don't work out as well, so I'll eventually continue to grow my business in OH. Overall, the numbers are great, and there's room there to make some mistakes and still be OK.
What makes your Columbus deal iffy? I love to talk shop when it comes to land-lording, horror stories and all...
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What makes your Columbus deal iffy? I love to talk shop when it comes to land-lording, horror stories and all...
The deal itself isn't iffy, whether or not it will happen is. Several things have to come together in the right way at the right time. We'll see. :)
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What makes your Columbus deal iffy? I love to talk shop when it comes to land-lording, horror stories and all...
The deal itself isn't iffy, whether or not it will happen is. Several things have to come together in the right way at the right time. We'll see. :)
Ah, I understand now. Good luck, hopefully it work out in the end! :)