This duplex with a bonus 3rd 1/1 unit just went up in our neighborhood. Its on a cul-de-sac close and walking distance to Springwoods Park.
This is a great way to live very affordably in Austin, build equity, and learn how to operate rental property and manage tenants (if you choose).
We also own/occupy a duplex nearby and would love to have like minded neighbors!
9009 Sawtooth Lane 78729
Looks like its pending already. Anyway, we're sorta neighbors already... I'm off Los Indios
Wow that was fast!
Another one also just went up for sale:
I'm looking to buy one in the semi-near future. It seems like prices are coming down and properties are staying on the market longer. Do you think it makes sense to wait a year?
@Jacob Ramsey what's your situation now?
In my case my monthly expenses went down vs renting so I don't think it would have made sense to wait.
Who knows what will happen in the future but I do not see prices lower now than 6 or 12 months ago.
Currently have a fairly solid job but probably only a 50% chance I'll want to stay in Austin more than 2-3 years.
Renting currently at ~1k a month. I really want to buy a multi-family to house hack, but currently thinking it probably makes sense to wait a year to have a better idea of long term plans. I have a VA loan that I could use, and have ~100k in stocks that are easily liquid.
Then again if I could find something that made sense even with property management then maybe that isn't a problem.
That rent is hard to beat.
I think it would be hard to find a duplex that would be cashflow neutral or positive with 25% down and paying a property manager. It could be possible if you could find one that needs work, make some repairs and raise the rents. A fourplex could also work.
You can always invest outside of Austin and keep renting...
Sawtooth looks really nice, but the price is up there. Does anyone know if a 4-plex is common in the Austin Area?
Plenty of fourplexes are for sale in the ghetto at about that same price. I own a few in 78724 and average rents are just a bit above $4000 a month.
Hey @Andrew W. and @Jacob Ramsey , @Lexi Teifke hit the nail on the head. Every deal is different so really you have to consider your long-term goals and the numbers specific to that deal. Austin/Texas have very strong markets when compared to many other parts of the country. Growth has slowed form around 8%/year to 4%/year and there are a lot of factors contributing to the slow down but the demand for housing is still strong. Austin is still growing rapidly as are property values.
Also, historically values rise, plain and simple. You buy now and in 30 years, when your note is paid off, your property will almost certainly have increased in value even though we will likely have at least 2 recessions in that time frame.
That leads me to the looming recession. You can google "coming recession" and find many Bloomberg, Forbs, etc. articles listing the myriad of reasons we can expect a recession in the next year or two. We are in the twilight of an up market with stocks at a near record high. I’m no financial advisor but it seems like a good time to take your chips off the stock market table. Now, that recession may make you bearish on purchasing RE right now but when it comes to repositioning cash from the stock market into something more stable to weather a recession, Austin RE is a good option to consider. The coming recession may drag RE prices down a bit due to the housing affordability crisis but your considering MF and the demand for housing in Austin is so strong that we should benefit from some insulation.
When you factor in the 4 benefits of RE; tax benefits, debt pay-down (equity growth), cash flow, and appreciation, really the best time to buy a deal is when there’s a good one in front of you.
9009 Sawtooth (see my original post) is back on the market
@Lexi Teifke , interesting idea! For buy and hold, I am looking for properties with more cash flow than this (so mainly outside of Austin). If anyone does want to buy it as an investment, I live down the street and can keep an eye on it for you!
However, for anyone wanting to buy a property in this area to live in this would be a great choice! This nets out much cheaper than buying a similarly sized 3/2 Single Family home and offers nice flexibility with the extra 1/1 unit for an additional renter, STR, or more privacy when family is visiting!
I want to house hack in NW Austin, area as close as possible to Anderson High school.
@Lexi Teifke I saw the posting about the property. It looks good. How much do you think one side would rent for? My goal is to house hack in the next 7 months, most likely ready to buy in November or early January. Will be looking for a conventional loan and putting down at least $20k. Looking for duplex max $400k. My biggest want is having something as close to FAR WEst/Andersoon school as possible.
This one would require 25% down to break even at its current price. Thats with the 1/1.