In Austin Texas with high taxes can good househack be worthwhile?

Question

There is a property for sale that has solar panels and I’m trying to analyze at what price point would this or another property be worth house hacking?

This property is likely not ideal since it doesn’t have room for value add and would probably be at retail price.

My thought is I could move there and get into it with a 3.5% fha loan and live in it for a year and then rent it out if it would cash flow enough.

Aaron Gordy · Answer

@Seth Bender Well, I think that you need to run the numbers. As @Ryan Kelly said that its unlikely to cash flow with only 3.5% down. You will need to add value somehow to be able to increase the rents. Adding value is key! House hacking is a great idea though and you should probably do some number crunching to be sure.

Ryan Kelly · Answer

There is not likely to be any properties in the Austin area that will cash flow with only 3.5% down. Your debt service will be too high compared with the rents you can get in return.

Seth Bender · Answer

@Nick Sheveland

I should’ve mentioned I was only looking to cash flow after I move out after a year or so.

Seth Bender · Answer

@Ryan Kelly

That makes sense it won’t be nearly as profitable without the 20-25% down payment such as rental property loan.

Nick Sheveland · Answer

You wont actually "Cashflow" since you'll be living there. However if the price is good enough and you pay rent so to speak just as a tenant would it can be in the positive. Finding value add and getting up to market or near market rents is key though.

I have a house hack here and am renovating my unit next door now that the tenant has left. I've already got another tenant ready. I pay standard rent on my side just as my tenant will be. We pay rent through Cozy and it goes into a checking account I have for the property that the mortgage is also paid from. The difference left over each month is $377 or $188.50 a door.. in Round Rock.. and in 2020.

Keep your eyes open, know your numbers and market, and never rush or fudge numbers. There's actually a video in my profile of the property, some of the numbers, how it was found, and how it came together.

I'm always open to connect and brainstorm with anyone who's interested.

In Austin Texas with high taxes can good househack be worthwhile?

Most Popular Reply