If you had $100k and a salary to afford $4000/m mortgage - where would you start?

Question

Title pretty much says it all! I've done a decent job saving and have been blessed with a good job but I'm moving to Austin and really want it to go as far as possible. I'm really curious what people with experience would do if they were just starting out again with these conditions. 😄

Danny Polanski · Answer

Id househack, no questions. Id buy a multi-unit bldg and live in one of the apts.

Alan Asriants · Answer

I would recommend renting in the area for a year and during that time trying to go out to places, drive around, get to know the city and the pockets. Meet with locals, talk to them, get their opinion about the area, what do they think of certain things going on in the city.

During that time you will develop a better understand of the city and where you want to invest.

Go for the FHA house hack first! IF you can find a built as quadplex I would go for that first, the more units on the 2-4 unit spectrum, the better. Try to find a property that was built as a multi family and built preferably after 1980 (PVC plumbing, Electrical is more to code, etc)Feel free to reach out anytime, I'd be happy to connect and share my journey!

Theresa Harris · Answer

Do you own your own home?  If not, I'd buy a place with a suite or a duplex.  Live in one unit and rent out the other.  You don't need to max out your $4K a month (and shouldn't).  I'd then buy another house and repeat until I got closer to my limit of $4K a month.  Do not buy the cheapest house you can find, but a good one in a good area. Live in the unit that needs the most work as you can do it while you live there, then when the other unit becomes vacant, move there and repeat.  You will be able to get more rent that way (renting the better unit).

Jordan Moorhead · Answer

@Jesse Rurka I always recommend househacking and like south and east Austin. If you're buying a single family I would recommend southwest like Sunset Valley or Oak Hill to hit that payment. You can also do that in parts of North West Austin closer to Cedar Park.

Aaron Gordy · Answer

Depends upon what side of town you will be working on and if you will be required to go into the office for work. It would not be fun to commute from south Austin to far north austin during traffic every day. Or vice versa. Unless your idea of fun is to sit in traffic for an hour or so every day.

Buy a condo but you could buy a duplex or a house depending on a variety of circumstances.  House hacking is gold.

Scott Mac · Answer

Your not going to want to live in San Antonio and drive into Austin to work every day.

That's way to far.

Gregory Nelis · Answer

I would really like to know a little more about your circumstances to give you a solid take. It takes a year to really learn the city you live in, and I would be nervous house hacking with a family, even in a duplex. But if I read it as I have the salary and can get 4000/month more in mortgage payments... I would be looking for 2 single family houses per year. They would be in need of repairs that I would pay for using my salary. I would then get good tenants in each and repeat the next year. By the end of year 2 the cashflow from the four should be enough to buy another 1-2 and we would continue to grow from there.

Patrick Prunty · Answer

I'd start by finding a good, experienced realtor to help you evaluate location. A primary residence is a big purchase, largest purchase that many folks make in their lifetime.  That said, you need to make sure its a stellar location, good school district, close to amenities, etc.  No one better than a good realtor who specializes the area to help you find the best mix of it all.

Chris Seveney · Answer

@Jesse Rurka

Depends where you are located as that will play a major role in any recommendation - also your age and lifestyle (single, married, kids?)

Without this info tough to provide any “what would I do advice”

Andrew Freed · Answer

@Jesse Rurka - Someone mentioned this already, but house hacking is the way to go. If you can find a multi to househack, great however I know they are a rarity in Austin TX. San Antonio TX has a lot of multis if you are cool with a longer commute. Or if you want to stay in the Austin area, you can buy a single family home and do a rent by the room model, maybe find a 4 bed 2 bath and rent out 3 of the beds, which would cover most of your mortgage. If I were in your situation, that is probably would I would do.

If you had $100k and a salary to afford $4000/m mortgage - where would you start?

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