All Forum Posts by: Aaron Gordy

@Heather Pantalone Additionally, its harder to make the cash flow work for condo's. The hoa fees will generally kill the deal imo. The taxes are already high here but add on the ever increasing hoa fees especially at older properties will be hard to make it work. But, I guess that really depends on your holding time frame. I manage a few condos and they cash flow but it took them a few years to accomplish those goals. 

@Rajat T. Sure, I bought a house with a partner for 160k. Put in a little sweat equity and now its renting for $1500 per month. We are beginning the work on this other duplex deal right now that will be cash flowing maybe $1000-1400 a month but that is a big construction project to get it updated and stabilized as it has foundation issues. My deals that I pull off have hairs on it and so the pricing is a little lower than normal. Typically the more hairs that it has the cheaper that I buy. I have a ton of construction experience though. I did broker a duplex deal in northwest austin a few months ago for $330k and I managed to get the tenants on one side to pay more rent provided I replaced the hvac. Went from $1k to 1500 in rent. No kidding. And that was pretty much turnkey. For the most part though cash flowing deals are hard to find. 

@Rajat T. If you are not working with a realtor already, hmu. There are deals out there to, be sure. As has been mentioned its a little harder to find cash flowing properties but they are out there. One might have to do a little remodeling but its very possible. I am working on a duplex that has the potential of $1400 cash flow but its a humongous risk as there will be close to $100k in remodeling. I bought one 2 months ago that cash flows like a cow. I am buying another one right now that I will be converting to short term rental as per guidelines. There are deals to be had, to be sure but it requires a lot of time and energy to find it and then to drive to check it out. 

@Matthew J.

I will put my two cents in. Commercial and office is triple net for the most part. According to Cushman and Wakefield's study in June the citywide vacancy for industrial space (warehouse) is 9.5%, net absorption is 209,019 sq ft, 593,130 sq ft under construction with net rents of $12.60.  My partner Matt Teifke would know more about this arena as he does more commercial. Matt is active on here. The residential side is less risk though as the citywide vacancy is considerably less than 9.5%. There are so many folks moving here a day...where are they going to live? Not in my places as I am full. 

@Ivet Medrano Hi Ivet. Hmu when you have time. I am a real estate broker and my team manages property for investors from all over. I also do house flips on the side. I can show you a project that I am involved in right now. Its a duplex remodel into a condo conversion with views of downtown. Super cool fun project. 

@Jason Behn

Why walk when you know the property? $6k is not alot in foundation work...welcome to Austin real estate! All the issues that you mentioned are not deal breakers in my mind. Fha 203k is a great option for the remodel. If you know the owner then he may be more willing to work with you through an agent/broker than someone else. Its important to put a little distance between you though and get an agent/broker involved who is a little more indifferent. Two, an savvy agent/broker will know how to work the deal in your favor as well.

If the seller is in a multiple offer situation then you do not have much time. Is it on the mls? Is it a good deal? I imagine it is a great deal if there are multiple offers. My two cents

@Brendon K.

Alex is right on. The best deals are found off market. On the other hand I find deals all the time on the mls but the margins are tighter, sometimes. I do deals on the mls all the time and I see opportunities there but it requires a ton of research time. One needs to be ready at all times though. Get your financial ducks lined up first. 

I don't know about Nashville but I do know that Austin is doing very well. It has been doing very well for a very very long time. I can send real numbers with listings if you like. 

@Nawab I. It totally depends upon the submarket that you buy into. For example, a one bedroom in the outskirts of the city won't be as in demand as a one bedroom in the core of the city in 78704 or by the university. A 3 bedroom 2 bath house is in higher demand in the area where there are young families. A 4 bedroom is in higher demand in the areas of the city where there are larger families. For a true analysis requires extensive research on the mls and do a leasing analysis on a comparison basis. Also, I would do a lease comparison to see the appreciation rates as well. Its not that difficult. Ask your agent to help you. If you don't have a good agent then I can help. 

@Avi Garg In addition to all the really great ideas, it would be smart, in my opinion to talk to a good attorney. A good experienced real estate attorney will have some great ideas to mitigate the risks for both partners. It might cost you $200 for the advice and then an additional $300 for doing the llc but in my opinion its better to be proactive than reactive on a deal. My attorney is well worth his fees. I swear by the guy as he has saved me thousands and have even made me a bunch of money as well. A cpa might be a helpful too.