Hey everyone, I'm looking to buy my first property and I want to ask if anybody has location recommendations for the Austin, Tx area? Or even advice in general. My criteria is residential multi-family, I would like to stay around 250's or lower if possible ( tell me if that number is realistic) and I would be house hacking because of the VA requirements. Thank you guys in advance for any help you wish to give! Thanks :)
I have plenty of places that I could email you or talk to you about. That type of stuff is what I do all day with my other investor clients. Some great opportunities. Feel free to email or call me anytime to discuss.
Thanks for your service.
I did the same thing; bought a duplex in Austin with the VA loan, and I couldn't recommend it more. Very little down, and my tenant pays my mortgage for me. I had very similar requirements as yours, but if I could do it again, I would change a few things.
First, you can get up to 417k from the VA for your loan. Since once you have a VA loan there are very strict requirements on getting another, I'd recommend you go for as close to that number as you're comfortable with. A higher home cost means more leverage and more money in rents. Also, a higher-class renter, whom you will have to live next to.
Depending on your own living needs, you may even want to consider a fourplex. The VA allows up to four dwellings on a single plot of land, and they're very easy to monetize, even with you living in one of the units. The downside is that they tend to be clustered in the less desirable areas of Austin (I have one East of 183, off of Loyola).
In the end, the location really depends on you. I can tell you that you can find plenty of multi-families under 250 as long as you're willing to look out in the suburbs. Most of them seem to pop up on the North side.
I'm always happy to help out a fellow ex- (or current-) service member. Let me know if you have any specific questions or would just like to grab a beer and talk specifics.
Austinhomesearch.com lists 1-4 family properties. I don't have any location recommendations but school test scores are a plus....realtor.com links right up to some school rating site. The school district web sites have scores and free lunch data, etc.
@Dan Burstain Thanks for the info! Let me email you tomorrow and we can talk for sure!
@Jacob Pereira Thanks for your service and the feedback! Let me ask a question: if I use say 200 can I only apply for 217 or can I go for another 417? Also, the area I'd like to get into is 183 and Mopac, a little more west of your 4plex. But i do see a quite a few duplexes for 200's in those areas.
@Marian Smith Thank you very much for the website! I'll be going to it right now :) Thanks again!
@Ross Ellington congratulations on taking the next step! It is best to start out by getting pre-approved to see what you would qualify for.
Im looking for someone to help me fire up my marketing machine in austin today.
I have a 200 dollar sytem im looking for someone to help me gas it up for 250 dollars
if interested please contact me ASAP and let do it right this minute. NOW
Blaze Investment Group
@Ross Ellington My understanding is that you can only get a total of $417K in loans...so if you have 200, you can only get another 217. The best person in Austin to discuss VA loans with is Chad Bowman of Veterans United Home Loans.
@Jacob Pereira Sorry to revive an older post, but I had the same strategy (FHA instead of VA) but found that since the market is quite competitive now (mid 2016), sellers have the luxury of selecting buyers that use conventional instead of government loans. How did you manage to get your offer accepted through VA financing?
That said, maybe it's a timing issue since your post was a year ago, and maybe it's because I'm looking in neighborhoods closer to downtown?
Hi @Han Chang ,
VA sometimes has a cultural benefit that FHA doesn't have in that some people prefer to sell to veterans over others. That said, most people look at the bottom line, so you need to adjust your offer accordingly.
If a buyer comes to a seller with cash, that is a sure thing that can close quickly and is unlikely to hit snags in the process. If a buyer does a conventional loan with 25% down, it'll take more time and introduces more uncertainty, so that offer needs to be higher by at least a few thousand extra dollars to cover the additional holding costs + uncertainty. An FHA loan introduces even more uncertainty and hoops that need to be jumped through (as does a VA loan), so your offer will need to be even higher.
In other words, if you decide to buy off the MLS or some other source where you're competing against others (in competitive markets like Austin), you need to price in the lower value of your loan as compared to others with the same offer price. If you're going through MLS I'm assuming you have an agent; he/she should call the listing agent and try to figure out exactly how much of a premium the seller puts on receiving a better loan category.
I'd love to hear about your purchase once you find something. Good luck.
Thanks for the quick response @Jacob Pereira !
I actually just got an offer accepted on a fourplex right off of I-35 and Braker Ln this weekend having decided to go with conventional vs FHA even though the property qualifies for FHA. It's doubtful that an FHA loan would have gotten us the accepted offer, so it's probably the right decision but who knows. In my case I've been on the market 10 months and plan to owner occupy so just wanted a more sure thing at the expense of a much bigger down payment.
Just figured I'd let folks know how the market is looking right now!
Congratulations! Is it the one on Grady? I was actually looking at that one when I saw the rental rates, but once I realized it was all short-term rentals, I decided against it. Definitely a nice setup though. Good luck.
Sorry to hijack this thread, but this is exactly what my husband and I are looking to do as well. He will get out of the military in the next few months and we're looking to move to Austin to finally settle down. The area seems to offer (almost) everything we are looking for to raise a family, be active, eat healthy and still have somewhat affordable real estate. I understand that the market is getting more competitive these days given how great Austin sounds on paper/the web!
@Dan Burnstain could you email me too? I know the thread was started a while back, but hopefully you're still reading this.
@Dan Burstain sorry, wouldn't let me tag earlier
Got you covered. I will email you some nice investment options.
Hi Dan -- my partner and I have been in Austin for almost five years now (we love it here) and are finally ready to start looking for investment options. Would you mind emailing me as well? I'd really appreciate it.
@Dan Burstain ^^ Sorry, I wasn't able to tag you in the first post.
@Cindy Day Sent you a PM. Happy to help you find great investment options.
@Dan Burstain My wife and I are also looking in the N. Austin area for a 4plex. Would love to connect with you and see what is available in this market. Really appreciate any help you can offer
PM me your email and I will send you all the 4 plex properties available.
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