Austin Investors: Need your Opinion

[Nicholas Dyer]

Hi all,

I’m new to real estate and read a few Biggerpockets books. Thought I’d get your opinion on the Austin market.

Main Goal: House hack and live for free

Ideal situation: I'd like to get a triplex, Possibly use FHA or pay down 20% if I have it. BRRRR it and live in the 3rd unit for free.

I’d like to live in a B or B- neighborhood and be within a 30-40 radius of the city.

Is any of this possible? I heard house property prices to rent ratios have a large disparity. Am I pipe dreaming?

Thanks!

[Matthew Brill]

The more you put down the easier it will be to live for free, no matter how expensive the property. But you have to compare it to the potential lost opportunity cost of those funds and ROI (particularly once you move out). Personally, I would be alright not entirely covering my living costs as long as they are lower (compared to not house hacking) and it will be cash flow positive when you move out. If you would normally pay $1000 for rent and with the house hack you still pay $500, you are still saving $6k/year. Plus you can be gaining equity. You will still pay $6k/year in housing expenses but it is just for 1 year and then you move out and turn it into positive csh flow.