Want to sell my house and buy another

Want to sell my house and buy another

Alyssa MarquezBusiness Member
Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 120 posts · 29 votes

BP fam what are your thoughts on my scenario -- 

I bought my primary home for $335k 2 years ago and have put about 40k in upgrades (new double paned windows, new foundation, new metal roof, rain gutters). I am an agent, I know this area well and I will not get the price I want to break even which is about 375k. I lived alone till January this year and have had a roommate paying around 700/month which has helped me with mortgage. My property is in the middle of downtown San Antonio, 3 bed/1 bath. I just listed it up on airbnb and have had 5 requests to book already - given 3 were for last weekend and I was not prepared for that, so denied all of them and set a 7 day advance notice. LOL. I already got a booking for April of next year and just received another request for two weeks from now.  Putting it as a long term rental will not give me any cashflow, I can probably rent it out for $1500 max and my mortgage payment is around $2381/month. 

The reason I want to sell is there is a property on the market I am absolutely in love with and wouldn't need to upgrade a single thing. I can take advantage of it being a buyers market and use my FHA LOAN to ask for a full 6% seller concession on top of my 3% agent commissions essentially allowing me to walk into the property with $0 out of pocket. I should probably buy a MF property but there isn't many options where i wouldn't need to invest more $ into to do upgrades. I travel 1-2 weeks out of every month so at this property i want i can have two roommates anyway to help cover the mortgage. I want to make a smart decision and take advantage of the market conditions. Please share any critiques, feedback/opinions.

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  • Dustin TuckerBusiness Member
    Lender · Savoy, TX · Member since 2020 · 195 posts · 80 votes
    2y

    Hello Alyssa, Have you looked up your Air DNA rental income, you can project the income pretty easily, I don't know what zip code your property is in, but with Air DNA, for a 3/1 in 78203, you are looking at 51% occupancy, with $37,834 Projected annual revenue at 51% occupancy. I would think that if you have an FHA Loan in place you could easily keep this property and turn it into a STR.

    Also, you can have up to 10 FHA loans out at 1x before you have to get into DSCR Loans.

    If I were you, I would go purchase the new property, and then wait 60-90 days, and see what type of Refinance I could get on your 1st property.  Also, keep in mind once the rates start falling this fall, in my opinion there is going to be a short lived surge in purchases from pent up demand that people were waiting for.

    Hope this helps.

    Also, if you are looking to keep more of your RE Commission DM me, I'm a Licensed Broker in Texas as well.


  • Alyssa MarquezBusiness Member
    OP
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 120 posts · 29 votes
    2y

    The loan on my current house is actually a conventional loan. 37,834/year projects me 3152/month before airbnb/cleaning fees right? With my mortgage being 2400 i don't think this will even be a positive return for me. 

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