Multifamily Property in Austin

[Spencer Rye]

I am looking to house hack a multifamily Property to kick off my real estate investing career. I just moved to Austin, TX and I'm looking for good areas to search for property around the area. I'm willing to look outside the city to avoid high expenses in the city. Any and all advise is welcome, the more information I have the better!

[Victor Steffen]

Hi Spencer, welcome to BP! A few pieces of advice- multi family inventory is much tighter here than in a lot of other places in the country. It's just not an asset class that ever got built in any sort of real volume here. That being said, they do exist but are moving at prices unwarranted by the rents they can command. Further- on the exit you will most likely be selling to another investor-minded buyer. Check out the sale data on duplexes in Austin and you'll see them moving much closer to asking, even below asking price in some cases (this is unheard of in the SFR space currently). You may do better finding a single family home with multi levels, perhaps the main bedroom on the first floor with 2-3 bedrooms and a living room on the upper level. Lease the upper rooms to roommates. Rooms are moving between 800-1000 per room per month here. Far more SFR inventory at lower purchase prices than multi-unit inventory. Rent by the room is the way to go! good luck !