9-12 Cap Rate: Downtown Austin STR short term rental OK by HOA

[CP Chou]

Downtown Austin Texas in the middle of all the action. This condo features an HOA that explicitly allows STR (short term rentals). Proven comparable gross rents put this property in the 9-12 cap rate range. More upside possible as it needs to convert from a LTR (long term rental) presentation to more of an Airbnb/Homeaway look to attract guests. Value add is there! Expect high annual occupancy (80-90%+) with major events such as SXSW, ACL, F1, festivals galore and endless conferences at the Austin Convention Center walkable up the street.

This unit is a 2 bedroom 1 bath loft setup with the master downstairs and the loft bedroom up the spiral staircase. The complex also features a pool and a reserved parking spot. 

Short term rental licensing (Type 3) is the responsibility of the buyer. Please visit City of Austin's website on procedures:

https://www.austintexas.gov/str

Currently off market and seller ask is firm. Current LTR tenant lease expires in March 2018. The condo is non-warrantable (non-Fannie/Freddie) and financing will need a lender with a program for it (can provide recommendations).