All Forum Posts by: Bill Mason

@Caleb Heimsoth

Balance of sheets of most oil and airline companies are horrible. Both carry major debt and their revenue streams and cost basis are not things they can influence as much as a business would like. While I am not by any means giving advice whether or not to invest - just know that they are not resilient businesses in today’s economy.

Joe Scaparra thanks for the insight. Agree with above but more specifically, what areas of Austin are you finding decent duplexes in and at what price ranges?

@Dave G I completely agree with you at looking at the driving factors in close detail. I have done that already, and in short I came to following high level findings. Positive impact on appreciation: -area was historically undesirable due to association with “East Austin” demographic stereotype, but that his changed rapidly in last 10 years due to proximity to downtown, universities, corporations moving in, redevelopment of parks/recreations etc. -the median income YoY is rising rapidly. -the crime in the pocket where the townhomes are located is relatively low, since this Pocket was close to onion creek park and some nice quiet neighborhoods exist. Some negative factors: -all that’s been mentioned about risks with townhome HOA’s -having 90+ units mostly the same can slow down appreciation dramatically. Lot of competition of the same kind of unit when selling. -there is an investor cap by the builder, and I fully expect the HOA to find ways to enforce this. -there are several apartment complexes nearby. -schools aren’t the greatest, nowhere near levels of a typical bedroom community.

All - thanks a lot for the honest advice. I’m glad you’ve given me these perspectives. Clear to me now the risks with these investment are too high and I’m going in much more “blind” than I thought.

any advice?

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?