All Forum Posts by: Isaac Hayes

This can be an easy way to gain access to liquidity for the average person. Do you understand the implications in doing this from your employer? They usually require you to pay down the 401k loan completely if you leave your job that is currently sponsoring the 401k. You may want to consider how likely you are to stay with that employer and the consequences of potentially being unable to leave until you can repay the loan entirely. 

Hi Louis, 

That seems like it would be extremely frustrating. Do you think you'd be able to train your current cleaning company to clean the mattress protectors, or are they just generally not a good solution? I'm asking because, if you decide to self manage with this being a four hour drive, you will eat up a considerable amount of time. You could use this time to expand your real estate portfolio and go after more cash flow! How do you value your time here?

These month over month numbers are interesting. Do you think the year over year numbers are skewed by the unemployment increase due to covid last year around this time?

Welcome, and best of luck to you!

You bring up an interesting point that I had not previously thought of in that rent prices will likely significantly lag behind the price that current home prices can demand, assuming those home prices have significantly changed within the past year or so. I recently rented an apartment, and, talking to the leasing agent, it sounds like their rent prices have increased by about 50% relative to a year ago, which is a small sample size but makes a lot of sense considering the rental price lag and the fact that they're likely trying to catch up with pricing.

Hi Walker. This one is tough to answer without fully understanding your personal and financial situation and how much risk and leverage you're willing to take on. At the end of the day, if you have enough reserve cash on hand and/or W-2 income to where you can pay to hold on to the investment property for an extended period of time (at least 6 months I'd say) with no rental income, it may make sense to use a HELOC to purchase the investment property. If you do not have the reserve cash on hand (or access to something you can liquidate), I would start saving for a down payment with a saving account (or Roth IRA/standard brokerage account is even better).

Hi Irma. Welcome to BP! I'm curious, what made you want to jump back into the real estate game?

@Bryan Noth

This is great insight! Thanks for the precise numbers and conclusion with sources cited. I agree that the sellers market will likely persist here.

Thanks for the perspective, Joe. It makes sense that job growth and people continuing to move to Austin will continue to drive growth in the real estate market. It seems like job growth will continue to rise, especially with jobs that demand high salaries with large tech companies doubling down on investments in the area. I have seen some numbers showing that in early 2021 around 30k new homes were authorized to be built in the Austin area. I would expect most of these homes to be finished by late this year or early next year. With an estimated 100 new people moving to Austin each day, it seems these 30k new homes will help keep inventory in line with demand. Do you think this will help decrease the price of homes in the area?

Thanks for sharing these numbers. It is great to see the year over year comparison for both Austin and Round Rock MSA. It seems like there is quite a bit of momentum keeping the market moving in the same direction for the foreseeable future. Does anybody disagree and think that there is a bubble in Austin that is waiting to burst? Why or why not?