All Forum Posts by: Kris Wong

Mario, welcome! How is the short term rental in Frederiscksburg going? I've considered the same. I am currently investing in multifamily here in Austin.

@Brandon Hall - https://www.therealestatecpa.com/

I don't have much experience here, so take anything I say with a grain of salt. I've heard build costs discussed a couples times, and that sounds low for a high-end finish. I would expect something more in the 150 -180 range. I wouldn't be surprised if it were a little higher.

Just reading the OP, the trend is quite obvious, and it's not in your favor. If you don't take action, the trend will continue in the wrong direction.

As a general rule, SFR's don't cash flow in Austin. Given that you're asking about "hot" zip codes, an SFR really won't cash flow. Even finding multi-family that cash flows is challenging. If you're not OK losing money on a monthly basis to bet on the longer term gain from appreciation, then I would either pick a different strategy/city, or get out the yellow letters and be prepared to spend quite a bit on marketing. On the plus side, the recent appreciation has been nuts, though who knows how long the keeps up.

If you want a commercial investment with low maintenance, look for a property with a triple net lease. Of course, those are typically going to have a fairly low return, but are very passive.

Welcome!

You are correct that it will be taxed as normal income.

I would not take that risk for that little profit. And no way he gets it done in 4 months. We have an environment we're trades literally don't show up to your job because someone else offered them a little more that day. Building in this area is getting as difficult as finding a good deal in this area.

I actually haven't started marketing yet, though I have done a lot of the work to get setup. I've had some success finding an occasional buy and hold deal in the MLS, but patience is key. It may take 6 months or more to find something that makes sense, and you're going to have an even harder time with single-family.

I can tell you I've heard that marketing is also very competitive in Austin. That's what happens when the market has been screaming upward for so long.