All Forum Posts by: Bryan Noth

@Yuxi Li I have used Airbnb to great success for the MTRs.  As @Jordan Moorhead said, make sure the renter checks out when requesting to book on the platform and use your specific screening materials or questions.  I use a second agreement all tenants / guests have to sign in advance on STRs and MTRs.  

You will gain attention if you put your listing on the MLS as @Celine Crestin mentioned, but you will also likely incur significant lease up fees, potentially on both sides (listing and showing). If you have an HOA that has 3 or 6 month minimums I believe this could be a viable route but a 30-40% lease up fee for a single month alone would likely devastate the profit margin.

The Boring Co. is requesting to build an 80,000 square foot warehouse and a manufacturing facility East of Austin, TX.  The Boring Co. already owns the 73 acre parcel in Bastrop and has submitted water drainage and site plans and also has ties to the Pflugerville address for the company.  

Article link here:

https://www.bizjournals.com/au...

@Spencer Cuello the link for the STR licenses has been put in this thread already but you are correct, obtaining one for a non-owner occupant is not going to happen. Suburbs are a great option for STR or look into 30+ day leases within the city as an MTR.

@Karthik Cherukuri it's true, almost every part of of Austin is on fire given the sheer volume of influx, both population and jobs.  

By percentage, Hays County (home to Kyle and Buda) has been the fastest growing county in the nation by percentage the past 10 years according to the US Census Bureau.  I also second that corridor between Austin and San Antonio looks primed for growth.  Watch out for floodplains but parts of Kyle but overall it has seen exceptional growth and looks to be posted to continue.  

It depends on your goals @Billy Zhao

If you are trying to build cash flow in the near future then a refi could prolong hitting that target. 

If you are trying to scale then a refi may work to your advantage.  

Given the numbers you shared, your net cash flow is $833 / mo, or $9,996 / yr. Checking that against your available equity, your ROI is 2.35%. In theory, you would be increasing your returns as long as you put the cash out money into another investment that has a return higher than the refi rate of 4.5%. This does not account for appreciation of course, purely a cash on cash (CCR) and ROI analysis here.

New public filings indicate $11M warehouse may rise just across Colorado River

Important to note this is a separate project from the Gigafactory, the recently announced 'Project Cathode" which aims to produce batteries, and the mysterious 'Project Bobcat' which has not released additional details since filing last year.  The 4th project here has confirmed an $11M warehouse that will be over 200,000 sq feet in East Austin.  The site is just South of the 2500 acres of land the Gigafactory currently sits on.  

Article Link:

https://www.bizjournals.com/au...

@Laukik Hoshing that is a very easy metric to hit for the Austin MSA and keeps options open for choosing a location. 

@Nathan W. 

I transitioned two traditional long term SFH rentals last year. I have a STR in Cedar Park and a MTR in North Austin. And as long as the minimum stay is at least 30 days it does not fall into the STR category. Both models have performed strongly thus far with low vacancy and higher cash flow to boot

@Nathan W. I usually see cash flow positive on SFH LTR in Austin within 3 years of acquisition. The last 2 years I have been able to force that within 12-24 months of acquisition. However, the STR and MTR model are comfortably cash flow positive right out of the gate.

@Austin Cai this may differ based on the subsidized housing provider. Subsidized housing can come from County programs, City Programs, State level programs, even other speciality programs.  I have had several in the past in both Austin and San Antonio.  Their websites and staff are often very helpful to second @Malcomb Stapel's comment. The stigma against Sec 8 is a barrier for those programs and many regions are happy to educate landlords and help them get into the process. 

My experience with Sec 8 tenants has also been the voucher is the portion the provider has agreed to pay.  It may be based on area comps or based on the applicants' income.  I have seen some fluctuate from year to year based on pay increase or hours cut at work.  Usually the tenant has to agree to pay the difference but it's worth showing the housing provider comps to see if an increased stipend for your unit is possible.