Small-Lot LUX Multifamily: 8-Unit on 30x35 - Austin TX - Feedback?

Question

Hey BP family! 👋

Isaac here from PlanCraft - we specialize in small-lot multifamily designs.

Sharing our latest LUX concept:

- Lot: 30x35 (small lot infill)

- Units: 8 units

- Parking: 6 covered + street

- Market: Targeting East Austin / AE Flood Zone lots

- Design: High-end exterior, efficient floor plans

Questions for Austin investors/builders:

1. Does 6 parking for 8 units work for your tenants in East Austin?

2. What would you change to make this more rentable?

3. Any experience with small-lot 5+ units in AE zone?

We just added our first deal to our portfolio (see profile) and learning the Texas market. Would love your brutally honest feedback!

Would you build this?

Thanks!

Brad Seid · Answer

@Isaac Baliruno Great concept, Isaac! Small-lot multifamily projects definitely have strong potential in the right market. Financing can be a key part of making these deals work. If you ever need help exploring lending options for your projects, feel free to reach out. Happy to connect!

Lotably Team · Answer

Six spots for eight units is workable, but decide up front how the spots get assigned, because that's where the headaches start. Two simple options: give one numbered space to each of the first six leases and rent the last two units as no-parking at a slightly lower rent, or charge a small monthly fee per space so demand sorts itself out. Put it in the lease in plain words, something like 'one assigned space, no guest parking in tenant spots.' Number each stall and post a sign at the entrance, saying who may park and what happens if someone doesn't follow the rules. Also check Austin's current parking minimums and any transit-area reductions before you finalize the plan, since those have changed in recent years. In East Austin, street parking can tighten quickly as nearby lots get redeveloped, so I'd underwrite the deal assuming the street is not guaranteed. Full disclosure: I run Lotably, a parking app.

Noah Wright · Answer

Putting a design out for brutal feedback before anything gets built is the right order to do it in. On parking, 6 spots for 8 units can work, but plan on the two units without a spot renting for less. The lender's numbers will use the rent the comps support, not the rent you're hoping for. In an AE zone most lenders require flood insurance, and that premium goes into the monthly payment the DSCR is measured against, so it comes out of the same rent. Ground-up 5+ units also usually falls outside standard DSCR programs, and construction lenders put a lot of weight on the builder's experience when it's an early project. Parking gets you tenants, the insurance quote decides whether the numbers hold. What is flood insurance running on the lots you're looking at?

Isaac Baliruno · Answer

Thank you so much Brad! I really appreciate your encouragement.

You're right - financing is key. I would love to learn more about lending options for small multifamily.

Thank you for connecting! I will reach out via email.

Best,

Isaac

Small-Lot LUX Multifamily: 8-Unit on 30x35 - Austin TX - Feedback?

Small-Lot LUX Multifamily: 8-Unit on 30x35 - Austin TX - Feedback?

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