Looking into Texas: Turnkey Update (March 31, 2014)

turnkey

Last month, I mentioned that I might possibly start looking into turnkey rental properties in Texas. In particular, I was thinking about making a trip out to Dallas/Houston/Memphis to meet with some turnkey companies to learn more about investing in Texas. I had a really good phone consultation with one of the companies and was looking forward to making a trip out in either March or April.

As it turns out, I wasn’t able to pencil in a good time slot to fit my schedule. Later in April, I will be going out of town to Seattle to attend a travel hacking event. In May, I have tentative plans to go visit Boston. Finally, my round-the-world expedition is scheduled for most of August. There just aren’t that many flights going into Memphis, and each available (affordable) date would require me to take a few days off of work… I only have so many available vacation days remaining! 🙁

Nevertheless, I still do have plans on making it out there later this year. I’m guessing that September timeframe might work better at this point. I apologize if any readers were anxiously awaiting for an update. It might be for the best, anyway, since I’m not currently in position to make any more purchases.

On a related note, I do have a dinner planned for this Wednesday night with my local real estate agent. As I’ve mentioned in previous posts, this guy is a total shark and helped me win Rental Property #1 and #2. This guy knows his stuff and wants to update me on the status of the local market. He’s been asking me whether or not I would be interested in getting into an apartment complex, or commercial real estate. Honestly, I’m not expecting to be able to locate many good deals in my own local market, but it doesn’t hurt to entertain the idea. I’ll let you all know if I hear anything good. Any worthwhile deals in the commercial space might require me to partner up with some other investors. And a 1031 exchange on Rental Property #1 would be an absolute given.

We shall see…

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writing2reality
6 years ago

Always move at your own pace, and it sounds like you’re doing a great job of managing that. Forcing a trip out to Texas would probably alter your timeline somewhat and by slowing down you might actually speed yourself up down the road by being in a better position with your capital to make moves quickly.

Looking forward to hearing what your RE connection has to say for a potential commercial/apartment complex deal.

No Nonsense Landlord
6 years ago

Multifamily buildings, especially 5+ unit buildings, are priced according to cap rate and ROI. You are not competing for your rental with someone who is romantically connected to the neighborhood or someone who needs to live in that location. You are also not competing with a 3% down buyer. Instead, you are competing in the shark pool. Make sure you understand the apartment classifications, what the cap rate should be for that type of property, and how to figure out expenses, especially if the net sheet seems light. Having a decent amount of capital will be absolutely necessary. Rents will… Read more »

Done by Forty
6 years ago

I’m very much looking forward to your thoughts on Texas. Dallas may be where we head next!

Tom S
Tom S
6 years ago

DFW would be an excellent market, especially when looking at it from a tax basis. The metroplex is literally booming (mainly the surrounding cities – Terrell, Plano, Forney, Irving etc). Something I would suggest though is to look at properties that are apx 1-2 hours out in smaller towns. Tyler, Longview, Athens etc come to mind.

NI
NI
5 years ago

Do you have any updated thoughts on the Dallas market? I’m also interested in exploring it, and through your blog, am learning quite a bit. I’d appreciate any thoughts or recommendations on agents/companies/etc