All Forum Posts by: Robert Eyers

I'll PM you the guy I use.

I've been telling myself to ignore the "you can't cash flow with less than 25% equity in Austin" crowd, but deals have been hard to come by. I keep stumbling across properties that might cash flow in Killeen, but I would prefer Bastrop. 

Whats your favorite fringe area for cash flow these days?

I have a custom builder I can refer you too. When you say "bigger & better" can you get a touch more specific? 4-plex, apartment building, subdividing land and doing SFR?

Just a note on ROI in uncertain times... I don't think Austin is going anywhere and I would much rather have my money in RE than the stock market at the moment.

Rent it out! Real estate is a long term game, and Austin isn't about to stop growing. 

Is it your primary residence?

I tend to agree with Jordan.

Beau, your analysis and graphs are always fascinating to me and I love reading them. Great insights.

However, I find that MOST tenants start by looking at price. if you have a pool of 10 different 3/2's within a 1/2 mile of where the renter is looking, its a safe bet that the one that is discounted by $100 will rent in less than 2 weeks and the one that has a $100 premium will be on the market for 3 months while more inventory gets posted and rented. 

I'll give you an example conversation I had with one of my owners last week. She wants to rent at $1300 (I discounted the numbers to make the math simple here), which is about $50 above the comp set. I told her to post at $1200 (again, discounted to make it simple). The home might rent for $1300, but it will take a month longer to find a tenant that likes it enough to pay a premium. Meanwhile, if we had posted it at $1200 originally, we would have had that money in hand within 2 weeks. By losing out on that one month of rent ($1200), it will take her a full year of collecting the $100 extra that she was insisting on to break even.

It takes even longer to make up the difference when we talk about higher rent, and the problem compounds if the unit stays off the market for longer than a month. 

My .02... look in all 3 areas, and watch for deals close to i35. Kyle and Buda homes along the highway are still a tolerable commute to DT Austin, but if you start looking 10 minutes off the highway it gets dicey. That will help you with speed of filling the unit.

I would plan on 2 weeks from the minute the home is rent ready to move in date. Thats IF the home is priced right. If you're thinking 1450 for any of these 3 along i35 and a 3/2... your probably good. Some neighborhoods... sure you can get 1550, but just remember that its not worth it to keep the unit unoccupied for an extra $100 a month. The extra rent would take over a year to recoup 1 lost month at the lower price.

Let me know if there is a specific address you have in mind, I'd be happy to send you an opinion on it. 

Property Manager with an office in 78745 here... I really believe in that Zip. Vacancies don't last (if you price right), and its a safe bet for appreciation. If you have some addresses you are looking at I can run a CMA for you.

78724 is seeing a lot of gentrification. There's a chance for sudden and steep appreciation, but nothing is a guarantee. If we see a correction, the new development could pause. Most likely, the answer is in between and both neighborhoods appreciate about the same.

Andres, if you want to connect I can run a CMA to get you a decent ARV. You do need to take the "appreciating market" factor out if you are planning to sell it after rehab. It won't appreciate enough between now and when you resell it. If you plan to hold though, anywhere in the metro area is still a safe bet.

I agree with the others about biting off more than you can chew... but there's another popular saying that could apply: "how do you eat a whole elephant? One bite at a time". You're doing the right thing by getting practice in, analyzing deals, and building your network. Do you have a good GC? If so, they should join you on your next visit and can give you a better idea on the cost of repair.

And if others weren't clear... the wholesaler is likely sending you their own set of numbers. You need to be EXTREMELY thorough in your DD, do not take those numbers at face value.

Let me know if I can help!

My first one I used a HELOC from my primary residence for the down payment. Interest only payments for the first 5 years, so it worked out very well for us. We went through BBVA for that, they were very efficient.