Originally posted by @Hai G. :
This is a great discussion and super helpful for all the contexts.
I agree while the barrier of entry in terms of price point is lower, future increases in property tax can wreck havoc to the math. @Bart H.
looks like you've built up a big portfolio, how are you going about it and what's your philosophy given these challenges?
@Kenneth McKeown - great point, would love to connect and pick your brain as well.
@Vansh Makh , let's definitely connect, would be great to meet up and share notes.
I'll shoot you a message.
I wouldn't say we have a huge portfolio, not by BP standards at least. But we have a few properties.
Here is the thing, our philosophy is to go slow and steady, with the goal of having a portfolio essentially paid off by the time we hit retirement.
Compared to most on these boards, we are risk averse. And compared to most we can be patient since my wife and I have full time day jobs, we don't absolutely need to keep doing deals to put food on the table.
By design our business model is to have properties with fully amortizing debt.
Getting Started at Any Real Estate Investing Stage
We look at keeping moderate leverage, and like to BRRR, But we also focus on areas of the city that we think are up and coming. We also want to be all in after rehab for about $150K-$180, with an ARV of $200K+ in a property that can rent for $1,800-$2,000.
In a trendy/up and coming neighborhood.
We might move those numbers up a little if it was as an additional out, or some other upside, for example if it was zoned MF-2, or was good for a college or medical District rental. OR could be redeveloped in the future.
My main point is that I think there are better places for out of state investors to invest.
Its a common theme that Dallas is a great market.
I think those getting here now are getting here late in the game, It looks to me as though Dallas is slowing
Now @Kenneth McKeown and myself have met in person and we have looked at a few properites together over the last couple of years. We haven't bought anything from him yet, but it will happen one of these days.
Kenneth busts his butt as a real estate investor and realtor and he is able to buy a few deals by using his commissions to fund the next down payment.
HE also has a lot more years than my wife and I do. He can afford to be more aggressive than we can. Its just a slightly different business model .
Look, I think its possible to find deals in any market. My wife and I generally prefer to invest close to home.
(Fort Worth is too far for us), and within the areas we are looking there have been very few if any deals that fit our criteria. So we will wait it out
IMo if you have long term time horizon, I am sure you will do ok, If you are looking at Dallas as a super high cash flow market over the next couple of years, I think there will be some disappointment.