I am looking to build my RE portfolio in Texas. Preferably using BRRR. I would like my first property to be a quadplex that I can BRRR & househack in. Does anyone know any good wholesalers, contractors in Austin, TX? Any thoughts on the current market there?
@Namrata B. I'd take one step at a time. BRRR + Househack is hard to make work. What money are you looking to pull out, 3.5%?
You'll have to do a significant rehab to make the BRRR strategy work. Househacking by itself is powerful enough. I'd recommend just looking to successfully househack. It'll drastically reduce your living expenses and help you save up money for the next rental.
Also why a quadplex? Would you not consider a duplex or sfh w/adu that covered most of your expenses? Good multis are hard to find in Austin and when you exclude everything you're even less likely to be successful.
@Jordan Moorhead - Thank you for your response. I agree with the house hack being a god strategy in itself. I meant I am open to house hacking or BRRR. I am still learning the Austin market & so the quadplex is my wishlist at this point.
No deals are really worth doing in Austin without a larger down payment. It is very competitive here.
Hi Namrata, I agree with everything said so far. Fourplexes are difficult enough to find in Austin, and even harder to make the numbers work at this moment without a huge down payment. I LOVE house hacking however and have several clients making it work well. You can focus on a single family or duplex that you will actually want to live in and then rent out the portions you don't need. One of my clients bought a home in SW Austin for $372,000 last year with a mortgage payment PITI around $1500 a month. He rented out two rooms at $750 a piece and now his entire mortgage is covered. Free house, plus reduced taxes as a primary residence. Welcome to Austin! Feel free to reach out if you want to chat more about the market in detail.
@Danny Webber I don’t agree. I found one last year that cashflows great. It took a lot of searching and a good rehab but it’s possible. I didn’t put down a large down payment.
Sure, you can find one a year. That's my point.
Post some that are available now that cash flow with 25% down in Austin.
Great cash flow is a subjective term by the way.
It is not easy to believe much of what people say without looking at notes vs rents. There is too much fluff in this industry and not enough facts bein circulated.
There are deals that cash flow.. to say otherwise suggests that one isn't doing proper research. Turnkey properties are harder though. I believe @Jordan Moorhead The best deals that cash flow the best are the ones that requires sweat equity. Not everyone is willing to make that happen. No one will give away a good cash flowing deal. Most folks try to put it under contract asap without telling anyone except their clients as we have a fiduciary duty. What about that property on Hillside in Elgin? That is a good example and it just closed.