22 Year Old looking to buy, live, and rent out rooms in north DFW (Dallas: real estate)

[kidstand]

Hi,

I'm a 22 year old (graduated from college in May 2017) looking to BUY a place in the north DFW area and rent out rooms. I've been staying in an apartment in McKinney and paying rent since graduating, but I'd rather buy property now, live in it, and rent out the other rooms. This way I can build equity rather than paying rent to someone each month.

Preferred criteria (in order of importance):

1. Should be in an area where I can find tenants easily
2. Property should be within $150k-$250k price range
3. Should be < ~35 min commute from zip code 75024 in rush hour

Things to note:

• I am open to buying houses, apartments, townhouses, condos, etc.. as long as I can live in one room and rent out the other rooms
• I have a stable job with an annual salary near six figures

I've done some initial research and have found a lot of properties in the Little Elm/Hackberry area, the north Dallas area, and the McKinney area. I also like the Richardson area because I'd be able to rent out rooms to UTD students. With the Little Elm/Hackberry area, my concern (might be invalid) is not being able to find tenants.

I'm new to all of this and will enlist the help of a real estate agent once I put together some more conclusive research. If anyone has suggestions for areas I should target, or any other suggestions in general, it would be very much appreciated.

[Prumio]

What about near UTD and rent to students?

[kidstand]

Originally Posted by Prumio

What about near UTD and rent to students?

Oops, forgot to mention that I'm considering that as well. Will update the original post. Thanks .

[SouthernBelleInUtah]

Remember HOA regs will prohibit more than 1 roommate or even any. Check before you buy.

[mSooner]

Check on loan restrictions too

[TeamLynn]

I'm sure lots of people do this.
Just a couple of things to think about.
One mentioned HOA....most call it single family and many prohibit renting to non-related people.
Neighbors often don't want you running a boarding house in their "single family" neighborhood.
There could be city regulations as well...so you want to check those out.
I've never seen a lease for a bedroom.....so you may want to talk to a board certified real estate attorney to see what they think and see if they have something for you to use. Don't use an attorney who is not board certified as too often they will mess things up...learning at your expense. Don't use the crappy forms you often find online from "real estate gurus". These are often outdated or were never meant to be used in Texas.
With all that said, you might do better buying a duplex or four plex and then you know that chances are the zoning is right and the neighbors more understanding.

[panacea1982]

my colleague who is a little bit older than you are bought a townhome in Knox/Henderson area in Dallas and rent 2 bedrooms to 2 of his friends. If i were you buying a house and considering renting spare bedrooms to others, I would buy in Dallas not in the suburb.

[kidstand]

Originally Posted by SouthernBelleInUtah

Remember HOA regs will prohibit more than 1 roommate or even any. Check before you buy.

Originally Posted by mSooner

Check on loan restrictions too

Originally Posted by TeamLynn

I'm sure lots of people do this.
Just a couple of things to think about.
One mentioned HOA....most call it single family and many prohibit renting to non-related people.
Neighbors often don't want you running a boarding house in their "single family" neighborhood.
There could be city regulations as well...so you want to check those out.
I've never seen a lease for a bedroom.....so you may want to talk to a board certified real estate attorney to see what they think and see if they have something for you to use. Don't use an attorney who is not board certified as too often they will mess things up...learning at your expense. Don't use the crappy forms you often find online from "real estate gurus". These are often outdated or were never meant to be used in Texas.
With all that said, you might do better buying a duplex or four plex and then you know that chances are the zoning is right and the neighbors more understanding.

Thanks to all of you. I didn't think about HOA restrictions/zoning issues when I did my basic research, so I appreciate that you guys brought that to my attention; will look into that further.

I did think about buying a duplex, but I doubt that I'll be able to find full duplexes < $300k. I might be wrong though.

Originally Posted by panacea1982

my colleague who is a little bit older than you are bought a townhome in Knox/Henderson area in Dallas and rent 2 bedrooms to 2 of his friends. If i were you buying a house and considering renting spare bedrooms to others, I would buy in Dallas not in the suburb.

Great, thanks for mentioning the area!