Seeking advice for aouse hacking strategy in Austin
Hello community,
I am a new investor in the Austin area, TX and debating between two strategies. Since I am new to the town, I wanted to seek advice from experienced investors out there. Which strategy below would you do in the Austin market? I am looking for a property around $500k, single with a remote work and side hassle.
Strategy 1: buy a duplex, live in one unit (for one year as a "primary residence) and rent out another unit as a short-term / mid-term rental on Airbnb.
Strategy 2: buy a single-family house with at least 4 bd, live in one room, rent out the rest of rooms as a mid-term rental on Airbnb / long-term rental.
I am new in this game and here to learn everything. Thank you all!!
Most Popular Reply
@Fumi M., I'm not from Austin but I will give you the advice I give those here in Utah (most of which should transfer just fine)
Renting by the bedroom seems to bring in the best cashflow. So whichever type of property, rent by the room if you are up for the extra management burden. Sometimes condos/townhomes are better at attracting young working professionals given that they are usually in more densely populated areas and often will have amenities that come with the HOA like pools, gyms, etc.
Buying a multifamily property tends to be better for scale. Here in UT we have strict occupancy limits in college towns of 3 unrelated people per unit. So renting by the room doesn't work as well there. Many just ignore the zoning rule though. That occupancy limit is often why many go with a duplex given they can rent to family and make more than they can renting to 3 singles. But 4+ singles works great if you can make it work.
Hopefully that was helpful! I think both are great options and you can't really go wrong if you are going into it openminded.