Dallas, Texas Real Estate

[stepchuk]

I was curious to know if anyone has purchased any rental property in Texas? I have been looking at some single family dwellings in Dallas. Houses in the Northern suburbs can go from $100,000 to $200,000 for 3 BR, 2 bath 1500 sqft-2000 sqft bungalows in good neighborhoods. Rents are decent, and these places would certainly cash flow. The Dallas economy appears to be quite solid and well diversified on paper, but I was wondering if anyone actually has any on the ground experience there. I realize that there are alot of complications involved with purchasing in the US market, but I have been down there and found solid management that could take care of most details for me. Does anyone have any experience assuming FHA loans? It appears that many are low cash to mortgage assumable with qualifying, but not sure how badly they want to qualify a Canadian investor.

Thank you for any help you can provide!

Chris

 

[housingrental]

Give Thomas Beyer a shout - he has purchased in Texas

 

[Albertritchot]

Robert Allen has purchased properties in Texas. Give him a call 647 828=8798 or email him at [email protected] [/color]

6(64(647) 828-87987) 828-8798




http://www.pgib.ca/right%20pages/alberta/c...cialistcal.html


He might have some ideas on buying property in Texas. I do believe he buys them for property tax arrears.

Like they say, "Caveat Emptor".

Still Bob has bought property down there so he should have some insight.

 

[stepchuk]

Thanks for the advice. I will try contacting both of them.

Chris

 

[Thomas Beyer]

QUOTE (stepchuk @ Aug 16 2010, 09:10 AM) ..

Thank you for any help you can provide!
what are you buying ?

hard to get a mortgage .. but not impossible for Canadians !

Interest rates are usually higher than in Canada !

avoid rent subsidized areas .. lots of riff raff / questionable tenants !

beware of property taxes .. they are quite high !

avoid C or D areas !! Drive and walk around at day and at night ! If you personally would live there it is probably OK !

Do lots of comps !

hire a great PM .. and I do not know PMs that manage SFs

Best deals in US are bought in cash .. then re-financed later !

Beware of US exchange rate, IRA filing requirements/costs and taxes payable while holding and on exit !!

But in general I am quite BULLISH on Texas as it is "The Alberta of the US" i.e. landlord friendly legislation, low taxes, high in-migration, business friendly environment, oil & gas industry, great weather (except May to Sept.) .. certainly a better place to invest than AZ or FL or GA or CA !!

 

[stepchuk]

Thanks for your help, Thomas. I really like what I see down there, and have found a PM that does ONLY SFD`s in good neighborhoods. Doesn`t hurt that he also owns a landscaping and maintenance/ construction company.

I have looked in the other sunbelt states as well and don`t like what I see there, but Texas appears to have good, solid fundamentals. It appears to be like Alberta in many ways, but significantly more diversified in it`s economy.

Now my challenge is to find a lender which could take quite awhile. Will keep you posted as to how I make out!

Chris

 

[Nir]

QUOTE (stepchuk @ Aug 25 2010, 10:07 AM) Doesn`t hurt that he also owns a landscaping and maintenance/ construction company.
Isn`t the opposite true - the fact the PM owns a maintenance company creates a conflict of interest? Thanks.

 

[housingrental]

Yes
I wouldn`t hire a PM that profited from ordering work on the property
It`s amazing what some unskilled workers are billed out at under these arrangments from other companies!
QUOTE (investmart @ Aug 27 2010, 12:39 AM) Isn`t the opposite true - the fact the PM owns a maintenance company creates a conflict of interest? Thanks.

 

[Thomas Beyer]

QUOTE (investmart @ Aug 26 2010, 09:39 PM) Isn`t the opposite true - the fact the PM owns a maintenance company creates a conflict of interest? Thanks.
only if he overbills you .. who cares if he charges $200 for monthly yard maintenance .. or his buddy Joe (who may feed him free Dallas Cowboy tickets every months, too ..)

 

[bizaro86]

QUOTE (ThomasBeyer @ Aug 27 2010, 10:07 AM) only if he overbills you .. who cares if he charges $200 for monthly yard maintenance .. or his buddy Joe (who may feed him free Dallas Cowboy tickets every months, too ..)

An excellent point. At least if the conflict of interest is obvious and disclosed, you can keep an eye on it...

Michael

 

[Thomas Beyer]

QUOTE (bizaro86 @ Aug 27 2010, 10:25 AM) An excellent point. At least if the conflict of interest is obvious and disclosed, you can keep an eye on it...

Michael
usually you get a monthly or quarterly statement .. and your job as an owner is to ask critical questions about "suspicious" or unusually high bills !!