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Old 08-14-2008, 10:55 AM
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Dirty Water Dirty Water is offline
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Location: Redmond, WA
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A question for Peter and JWingField

With the housing markets as they are in the southern states. I'm thinking about buying a handful of multifamily investment homes.

Any neighborhoods in the DFW area that you would recommend me taking a look at?

I've been looking at duplexes priced around ~50k. I'm curious as to what the going rent rates are in that area. From what I can tell, about $400-$500 a month on average.
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Old 08-14-2008, 01:31 PM
irrig8r irrig8r is offline
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I guess you're not afraid of anyone calling you a yankee carpetbagger....

$5K to $6K ongoing gross annual return on a $50K investment almost sounds too good to be true...
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Old 08-14-2008, 02:29 PM
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Dirty Water Dirty Water is offline
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I'm looking at a property that is listed at $55k.

Rent in that area starts at around $500 a month as far as Rent.Com says.

The property was just remodelled, I think I could get $600 per unit.

So, a mortgate on $55k + taxs and insurance is about $350 a month:

$1200 Rent Income
- $120 Property Management
- $350 Morgage
= $730 Per month net, or $8760 a year.

Considering that I'd only need to work for about 15 minutes per month on it, I'd be a yankee carpetbagger for that.
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Old 08-14-2008, 03:14 PM
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Mike Leary Mike Leary is offline
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You're going to have to change your handle to "Slum Water".
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  #5  
Old 08-14-2008, 03:20 PM
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lowvolumejeff lowvolumejeff is offline
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Location: edmonds, washington
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been there, done that

Quote:
Originally Posted by Dirty Water View Post
I'm looking at a property that is listed at $55k.

Rent in that area starts at around $500 a month as far as Rent.Com says.

The property was just remodelled, I think I could get $600 per unit.

So, a mortgate on $55k + taxs and insurance is about $350 a month:

$1200 Rent Income
- $120 Property Management
- $350 Morgage
= $730 Per month net, or $8760 a year.

Considering that I'd only need to work for about 15 minutes per month on it, I'd be a yankee carpetbagger for that.
Howdy.
Have owned rentals in DFW. Found keeping them occupied difficult, and when i did, maintenance cut my bottom line. Management from afar = higher repair/maintenance. If occupancy rates are low, renters expect new paint and fresh carpets. Duplex renters often demand less, but when occupancy dips, so does rental rates.
Lower end incomes create problems. It can take up to 6 months to evict a deadbeat. I have had them strip the copper from the walls (and this is when copper was cheap). Deadbeats lose their deposit, but inflict serious damage. If they pay utilities, landscape dies. If you pay them, floor rots where they had a leak and did not bother to tell manager.

You probably already knew all of this. I found out the hard way. I sold all my headaches (rentals). Money made, not worth the hassle and risk, IMO. If you have not already done it, try one locally, you can watch it, do light maintenance, and find out how you like the ride.

Jeff

=
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Old 08-14-2008, 04:29 PM
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FIMCO-MEISTER FIMCO-MEISTER is offline
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I'm not touching this one. J. Wingfield is far superior knowledge wise on this than I am.
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  #7  
Old 08-14-2008, 06:28 PM
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EagleLandscape EagleLandscape is offline
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Location: Garland, Texas
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I won't touch anything in Dallas. I'm not smart enough (or dumb enough) to buy a rental property in Dallas.

If I were you, I'd buy property in College Station. My father and I own 8 houses there, and they are cash cows. Each tenant pays like 400-450 in rent per month. We can fit between 4-6 people depending on the house. Do the math on those.

It's a fast growing economy and rental market down there. We can't build/buy houses fast enough.
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