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Creative Real Estate Financing

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Alan Frisk
  • Elgin, TX
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Short Term Rental - Renovation Elgin Texas

Alan Frisk
  • Elgin, TX
Posted Jul 13 2022, 16:06

Hi all!

Looking to see if anyone has any suggestions on how to finance a renovation on one side of a house-hacked duplex? We are closing on our first duplex in Elgin Texas in August and debating on renting out the other side as an Airbnb. (We'd live in unit A 896 sq.ft & unit B 795 sq.ft has MTM tenant with potential to STR). The only catch is that we won't have much money to use for a renovation and unit B could use some updating before attempting to Airbnb.

Thanks!

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Conner Olsen
Pro Member
  • Real Estate Agent
  • Austin, TX
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Conner Olsen
Pro Member
  • Real Estate Agent
  • Austin, TX
Replied Jul 18 2022, 08:48

I'd find a private lender. It sounds like you won't have equity to pull out of the house. You might need to DIY, you can get a Home Depot or Lowe's credit card and fund your purchases with their 0% APR program.

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Conner Olsen
Pro Member
  • Real Estate Agent
  • Austin, TX
921
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Conner Olsen
Pro Member
  • Real Estate Agent
  • Austin, TX
Replied Jul 18 2022, 08:50

@Alan Frisk Also make sure you analyze the Elgin area correctly to see if there's a market out there for STR. You can easily sink 8k-10k into a 795 sq. ft. and then might not have renters.

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User Stats

13
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Alan Frisk
  • Elgin, TX
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13
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Alan Frisk
  • Elgin, TX
Replied Jul 18 2022, 10:13

@Conner Olsen Thanks for the feedback! We'll definitely do some more due diligence on STR and look into private lender/Home Depot cc. Thanks again!

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Replied Sep 25 2022, 10:36

Hi @Alan Frisk - my wife and I are looking into STRs in the Austin area (Driftwood, Dripping Springs, Wimberley, others) and are curious how your research is going around Elgin? Another option we were exploring was Lockhart - to your point, do occupancy rates and cap rates in those areas merit serious research? Thanks!