DFW and the surrounding towns are full of older homes with detached garages. Many can legally be converted into garage apartments and some already have. That’s a multifamily in disguise.
Take this example: a $260K bungalow with a detached garage. Use an FHA 203k loan or a 5–10% down conventional construction loan based on a $325K all-in price. Put ~$65K into converting the garage. Live in that apartment and rent the main house for $1,800. With a PITI + PMI payment of about $2,600, your personal housing cost is just $800. Later, when you move out, both units together can rent for $2,800–$3,000 a month.
Quick Tip #1
Target homes with garages that are already have momentum (plumbed, powered, insulated, or partially finished). A small head start means less outlay and more upside.
Quick Tip #2
Look in neighborhoods where alleys are common. Historic areas like Oak Cliff, the M Streets, Lakewood, and Hollywood Heights in Dallas, or Fairmount, Ryan Place, and Arlington Heights in Fort Worth; these were designed with alley access behind the lots. That setup makes garage apartments more natural and sustainable. You get separation between the main house and the ADU, and as a future landlord, your investment isn’t dependent on unrelated tenants “playing nice in the sandbox.”
Caution Note #1
Fannie & Freddie have their say. You’re allowed one additional dwelling unit behind a traditional 1–4 family structure. You cannot build two Detached Additional Dwelling Units. But that does mean you CAN build 1 ADU behind a quadplex and still use low down primary home financing. If you’re targeting multiple ADUs then you’ll likely need commercial style financing.
Caution Note #2
When financing, lenders can count projected ADU rent toward your debt-to-income ratio if you’re living in the main house. They won’t assume you’ll live in the ADU and rent out the main house, so you can’t use that higher projected main house rent to qualify.
👉 Opportunities like this are hiding in plain sight. I spotlight and breakdown ADU-friendly deals daily inside the House Hack Texas newsletter at HouseHackTexas.com
Bonus List: to bridge the gap between online theory and local reality.
1) $245k Duncanville SFR (single family residential) + turnkey ADU - the owner has maximized the adu potential here marketing it as a furnished MTR to traveling professionals for $1300/mo for 5+ years. Killer!
2) $245k Dallas Turnkey SFR + ADU (needs completing) with private alley access
3) $332k Dallas SFR + ADU Completely updated
4) $415 Prime Fort Worth location SFR + ADU
5) $485k TCU Area Corner Lot SFR + ADU with private access. The main house is a 4 bed 3 bath as well. Given location, spacious lot layout, I would rent out 2-3 bedrooms in the main house to TCU students or young professionals as well.