All Forum Posts by: Aaron Gordy

Talk to an attorney who has experience in such matters. He/She should be able to write up a JV agreement that you should be able to plug and play with different scenarios and different partners.

If he is putting up only 50% of the capital and you are doing all the work plus providing 50% of the capital then the payout should be definitely in your favor. That payout is negotiable of course but if I were you I would begin with 70/30 and expect to end up around 60/40. 

Texas has surpassed 15 million folks in the civilian workforce. Crazy. State wide the unemployment is 4.1%. Texas continues to outpace the nation in growth! June Texas Workforce Commission stats.

Austin metro civilian labor force expanded by nearly 50k year over year growing from 1,388k to 1,431k. The unemployment rate over the same period of time slightly increased from 2.7% to 3.5%. The number of folks employed increased from 1,350k to 1,381k yoy.  

https://www.twc.texas.gov/news...

Interestingly the sfh building permits have only increased by 11,096 year over year from the latest data which is trailing by several months April to April 2023. https://www.recenter.tamu.edu/...

Renting by the room is the problem. Let's stay on point. The concept is renting by the room str or mtr. I understand the concept well but I would think about that one twice before doing a rent by room mtr or str from afar. Its very different. You get one bad apple and then .....  A carpenter friend of mine once said an old adage that he picked up: Measure twice, cut once. Before I do a development, I will visit a site many many times and then look at market data seemingly thousands of times to be sure.

Williamson County has been referenced many times as being one of the fastest growing counties in the US. The Texas Demographic Center is projecting that Williamson County will grow from 670k to 1.5 mil by 2060. That isn't much per year on a percentage change basis but 1.5 mil is a bunch and where will they live? Good stuff to ponder. Here are the sources: https://www.kvue.com/article/m...

https://demographics.texas.gov...

@Joseph Barajas I will take you up on that. I am at the gym 4-5 days a week.

@January Johnson Would you recommend managing a str or mtr by the room from afar? If so, have you personally done it? If so what was your experience? That is what the fella is asking about and nothing more. I have managed my share of this type of arrangements and know that its not easy.   Its a case by case basis for sure but on the surface knowing what I know, that is a pass for me. 

I am a veteran and have bought a few properties in the Austin metro using the VA loan. Yes, you can househack with a VA loan.

Its not all doom and gloom. There are some submarkets that are doing quite well. 

I agree with @Eliott Elias. I wouldn't recommend doing it from afar. I see legal problems that could happen and also a big hassle. Hiring a property manager not only provides a buffer with communication but that property manager will more than likely know the law and how to effectively and efficiently deal with tenant issues that may or may not happen. Hiring an attorney at that point will be very expensive. 

This is a much better source. https://www.yardimatrix.com/bl...  

Yardi is a reputable source. It seems that the projected rent growth for the year for Austin is expected to increase by 3.3%. Its really driven by the job growth in the Austin metro which is projected to be the highest of all metros at 6%. The unemployment for the metro is a really low 3.07%. So who will fill all the projected jobs? Out of town folks moving to the metro. As I have been saying for years, Austin metro is a job creating machine.