All Forum Posts by: Ryan Kelly

@Henry Lazerow commissions are fully negotiable and will vary by agent, region, markets, and the types of services agents will offer. Some states allow dual agency and some don't (like Texas). I don't think any specific trend has been set yet by the new rule changes and I don't predict it will head all one way or another. We have 50 states with 50 sets of rules and contracts. We also have 100's of markets with their own MLS rules as well. It will be most helpful to connect with professionals in your target market to get an update on trends and options.

The presidential election won't have any impact on a local level. Our median home price in May 2024 is nearly identical to May 2021 and May 2023. The big drop in values was between May 2022 and Q1 2023. Since then, we've been fairly flat as rates stabilized around 7%. As @Jordan Moorhead said, once rates soften a bit, buyer demand is ready to pick back up.

Quote from @Greg Scott:

Quote from @Paul Azad:

 would guess rough times ahead for US Multi-Fam next 2 -3 years, but doesn't look like we are near bottom of the cycle yet?

I'll see your charts and raise you one more.

If I were in Austin, Nashville, Salt Lake City, or Colorado Springs, I would be worried about the next two years.  If I were in the Midwest, I wouldn't.

 This chart is approximately 12 months old, so the actual impact is already being felt on the ground here in Austin. The influx of new apartment units has softened the rental market most acutely in large multifamily, condos, and quadplexes. Single-family and duplexes are holding fairly steady. It will take another 1-2 years to absorb the new inventory but our steady population growth take care of it in time. 

@Mark F. I second Apartments.com. We’re running collection on 8 doors and no charge to either side.

@Rolando De la Cruz you don't have to be stuck using an FHA loan to get a low down payment loan option. There are conventional loans as well with low down payments and the PMI falls off once you reach 20% equity.

In this higher interest rate environment, lower down payments does make it harder to cash flow, so just keep that in mind.

@Rolando De la Cruz I love your plan! Happy to chat about house hacking options in the Austin area along with some best practices.

@Jaekwan Lee I wouldn't get too stuck on which loan product to use. With our higher interest rate environment, 3% or 5% down may not be enough to be cash flow neutral. I would focus on purchasing the best property in the best location you can for your budget so it's a good investment. As others have said, it may make more sense to use FHA on a quadplex as you have more units to try and generate income with. We have a lot of clients house hacking multifamily and happy to help run numbers for you.

@Rob Chopra if they didn't do anything more than their original quote, yes, that would be unusual.

@Rob Chopra it likely may depend on the work that is required to make it ready for the next tenant. There are usually some minimum services like painting and house cleaning, but if additional renovation or maintenance is required, that will add to the price. Did your property management company give you a quote for a standard service?

I highly recommend connecting with @T. Alan Ceshker in Austin. He's one of the few with a lot of experience in this arena.