Advice to invest in Austin, TX Townhouse
Hi All, new to BP. I was hoping for some advice on questions below, thanks in advance!
Context:
-brother is moving to Austin to work at a company in east riverside area. His preference is to be close to work. I figured if I buy an investment property there, he can rent a room and be the "property manager" and rent the other room(s) out.
-my budget is $250k.
-I prefer newer homes / town homes because I frequently travel internationally and thus don't want to deal with frequent repairs.
-brother doesn't want to be more than 10 miles from his office.
-all the above led me to a new construction townhouse in 78747, 2 bed / 2 bath for ~$240k. I will put 20-20% down.
-the community is gated, close access to I-35, and will have at least 90 units.
-the zip code has appreciated considerably over last few years (5-13% YoY).
-HOA fees are $160/month which covers everything exterior of the home (landscaping, insurance, etc).
Goals
-I completely understand that it won't cash flow, but my brother is pretty much a 2-4 year guaranteed renter of 1 room.
-I want to rent the other room out.
-I hope to make profit off of the appreciation, holding for 6-8 years. The appreciation is pure speculation based on past performance.
Questions:
-should I stay away from investing in a town home due the common risks (smaller buyer pool, potential HOA issues, large competition etc)? What are people's thoughts on appreciation of townhouse vs SFH in south / east Austin?
-is it relatively easy to find a professional to rent a single room in that zip code (south austin)? If so, what are the best ways?