All Forum Posts by: Brooke Roeder

@Gulliver R. Oh and a 2br with a sleeper sofa in the livingroom is the ideal size for an STR because it offers the most flexibility for renters/casts the widest net, without getting overhead too high.

@Gulliver R. Before I sold my STR company I managed a portfolio of properties valued at over 35m. Occupancy rates mentioned are generally accurate. Walkability and/or a $5 uber ride to downtown is key. I used to drive up occupancy by significantly lowering the price of weekdays once the surrounding weekends were booked. Helped bottom line tremendously. Seasonally appropriate pricing is important. Don't waste money on AirDNA just do your market research on Airbnb. Look for healthy calendars with lots of bookings peppered in.

@Vierra Wong I’m a realtor in Austin. Surrounding satellite towns could be a good fit, here. I am personally investing in surrounding smaller towns where there are better margins and good anticipated appreciation potential. What size multifamily?

There are a decent amount of small complexes and/or guest houses in this area. Your best bet may be a small older condo complex where the units are owned and rented individually. 

Hey Rama! I think your best place to start is renting directly from a landlord/homeowner so you can work with a real person rather than deal with corporate protocol. How do feel about garage apartments or condos? I’m happy to ask around for you. Another option might be reaching out to Airbnb hosts to see if someone would rent monthly for 8-12 months for a reasonable rate, until you can get your record sealed.

Tucker, there are a good amount of low down payment options outside of FHA. Connecting with a great local lender is an important step, but there are definitely options out there. Love your plan - I'm a huge fan of house hacking and have done it myself! Happy to answer any other questions you may have.

Legally speaking in the state of Texas you must be a licensed realtor to advertise a property for lease, unless you personally own the property. One can manage a property without being licensed but one cannot advertise it for lease, secure tenants and/or represent a client in that manner without a RE license. However, a property owner can 100% advertise the property for lease themselves through available "For Rent By Owner" networks and directly secure a tenant, thereby avoiding realtor commissions. *Note: These rules do not apply to short term rentals, only leases of 30 days or more. I used to own a large scale short term rental management company before I was a licensed realtor and legally represented/rented those properties.

Hamal, 

I think they are both reasonably good investments, but Leander is probably better. Because of the Edward's Plateau, the soil tends to be much less stable around and east of I-35. HOA and property taxes can vary. If communities have MUDs or PIDs to cover the cost of getting utilities out to the new development, taxes will be higher. You (or your realtor) need to do your research on individual communities.

As Austin continues to grow, I think Leander is a better bet mainly because of infrastructure. Aside from the light rails mentioned previously, there are toll ways and newer, larger, highways in general. I personally prefer to avoid I-35 at all costs and I think many others feel the same.

I'd stay away from new builds right now. Builders have been causing all sorts of trouble in Austin lately. I know people who have been under contract for new builds for almost a year, close to closing, and have had their contracts pulled out from under them so the property can be sold for a higher amount and/or significant material cost hikes. If you want new build, I'd go for "almost new" so you can stick with promulgated TREC real estate contracts rather than builder contracts which are typically extremely lengthy and padded with builder "outs"

Hi Prash, I have heard some positives about Mynd. They're a "disruptor"/creative company that does mgmt for a flat monthly fee - worth researching. I don't know if it's realistic to expect no listing fee for new tenants, unless you're doing that part yourself via self-list rental platforms. That is typically considered a separate fee from standard management services. If the property is being advertised on the MLS, at minimum, the realtor on the tenant side is going to expect a commission. Hope that helps.

Investment Info:

Single-family residence fix & flip investment in Austin.

Purchase price: $535,000
Cash invested: $250,000
Sale price: $1,030,000

Million dollar fix & flip. I loved this project and really got to flex my design muscles on this one. Home was an estate in poor condition, but with lots of potential in a fantastic area. First home in the neighborhood to sell in the 7 figures.

What made you interested in investing in this type of deal?

I adored this home the moment I saw it pop up on the MLS. It sits on a 1/3 acre lot (huge for central Austin) and had a very specific and unique charm to it.

How did you find this deal and how did you negotiate it?

I won the deal with a very aggressive offer (at the time) and super clean terms.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Extensive, full-gut renovation. High end design and finishes.

What was the outcome?

First home in the neighborhood to sell in the 7 figures

Lessons learned? Challenges?

Home ended up needing a complete sewer replacement. It was necessary and worth it, but be sure you have a comfortable amount of extra cash on hand for major unexpected surprises like this.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I acted a both the realtor and renovator/developer on this deal