Texas Cash Flowing Areas with 20% Down

9 Replies

I’ve been looking through the Austin area in Texas with a target price of ~$250-280K with 20% down.

With the general rental prices, I’m finding that it will be difficult to cash flow immediately. With cash flow being a priority have you seen the ability to immediately cash flow in other areas of Texas with this target property price?

In the last year or so I've been getting more and more clients who are doing a "by the room" model. With that you can easily still cashflow in the Austin metro area with 20% down and no other value add, although at that price point you'll probably need to look in surrounding towns like Round Rock, Cedar Park, Kyle, etc.

@Jacob Pereira is it permitted to rent by the room like that and avoid occupancy permits, etc., or would you still have to go through those channels to get it? I hear it's a bit stringent to airbnb/rent out your place within the city?

@Ujwal Velagapudi , to be clear, I'm talking about a rent by the room situation, not a short term rental. I actually own an STR in the city of Austin, and the regulations involved are quite onerous.

As far as the rent by the room model goes, it essentially follows the same rules as roommate rules, which are much less strict. Usually in that situation you'll have to worry more about neighbor complaints than any kind of occupancy or zoning issues.

Originally posted by @Jacob Pereira :

@Ujwal Velagapudi , to be clear, I'm talking about a rent by the room situation, not a short term rental. I actually own an STR in the city of Austin, and the regulations involved are quite onerous.

As far as the rent by the room model goes, it essentially follows the same rules as roommate rules, which are much less strict. Usually in that situation you'll have to worry more about neighbor complaints than any kind of occupancy or zoning issues.

 Do you know any property managers that would manage rent by the room in San Antonio area?

Originally posted by @Joe S. :
Originally posted by @Jacob Pereira:

@Ujwal Velagapudi , to be clear, I'm talking about a rent by the room situation, not a short term rental. I actually own an STR in the city of Austin, and the regulations involved are quite onerous.

As far as the rent by the room model goes, it essentially follows the same rules as roommate rules, which are much less strict. Usually in that situation you'll have to worry more about neighbor complaints than any kind of occupancy or zoning issues.

 Do you know any property managers that would manage rent by the room in San Antonio area?

I've never used them personally, but the guys from Bungalow (https://bungalow.com/) have reached out to me a few times in the past. It's at least worth a look.

Originally posted by @Jacob Pereira :
Originally posted by @Joe S.:
Originally posted by @Jacob Pereira:

@Ujwal Velagapudi , to be clear, I'm talking about a rent by the room situation, not a short term rental. I actually own an STR in the city of Austin, and the regulations involved are quite onerous.

As far as the rent by the room model goes, it essentially follows the same rules as roommate rules, which are much less strict. Usually in that situation you'll have to worry more about neighbor complaints than any kind of occupancy or zoning issues.

 Do you know any property managers that would manage rent by the room in San Antonio area?

I've never used them personally, but the guys from Bungalow (https://bungalow.com/) have reached out to me a few times in the past. It's at least worth a look.

I checked them out before and it does not appear that they service San Antonio Texas. It’s actually a suburban San Antonio Texas that the properties in. It appears that bungalow only targets certain cities.

Just a thought: One of the not-so-obvious things to look for in rent-by-room properties is LOTS of parking. Imagine having four separate tenants on one moderately sized house, each tenant with their own car, and one of them with two, and then they have friends over ... it's easy to see how the neighbors could get bent unless there's sufficient legitimate parking to absorb all these cars.

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