All Forum Posts by: Ryan Kelly

@Kevin Kirby this is typically how the vast majority of hard money loans work. Flipping is a cash intensive business and higher risk, which is why the rates and points are built into the loan. If you are low on cash, you may need to find a partner who can bring funds and you manage the labor. 

@Ella Compton for Austin, the metro has been in price correction mode since May 2022, so not a new shift for us. We'll likely see another 6-12 months of correction before new build inventory slows and new apartment occupancy rates get tighter. Some other markets are just now starting to see prices soften, so the phase of where we are will highly depend on each market. 

You don't have to overcomplicate it if you don't want to. You aren't required to start an LLC, do a deed transfer, switch loan products, or any of those steps. What I do recommend to start is update your homeowners insurance policy to a landlord insurance policy, which has better protections for you if there is ever an issue with your structure or tenants. Then, just secure a solid tenant with good lease terms. Protecting yourself from liability is 99% simply being a good landlord. The other moves have pros and cons and no rush to force yourself into an LLC you don't understand. Take action on the rental and take your time on the other stuff.

@Kerri Asekeme it's harder to make the numbers work in Manor as there isn't as much gap between older homes and brand new homes, on price or condition. You are also still competing with new home builders in Manor, so it's a hard sell for buyers to buy a flip vs a brand new home. I would target neighborhoods in Austin with homes build in the 1960's through 1990's, where you can clearly find bigger spreads between outdated and updated homes. 

Yes, this is a most common practice. Buyers and tenants want to be able to tour a property privately and speak freely while in a unit. They want to be able to imagine themselves living there. If an owner is present, they feel like they are being spied on and it also creates a sense they are in barging in on someone else's property, not their future home. You want the  tenants to first approve of the property and apply. Then, you can always find a time to arrange a second visit with them in person once you already know they are interested to live there.  

@Paulina Le your lease should spell out when you can start marketing the property. Often, you may need an authorization form signed by the tenant as well, but I would ask your Realtor what is required. For make ready, you typically don't start the cleaning and repairs until after the tenant moves out. You will want to assess the property when they move out to see if any portion of the security deposit is needed to cover damages. Hope this helps!

@Michael Maddalon I look forward to connecting this week. I wear all three hats as a real estate broker, lender, and seasoned investor in Austin and we'll have a good discussion about your options in the market. House hacking a duplex has been a popular move the past several years.

Welcome to BP! I'm here in Austin and happy to chat about the market anytime. 

Check with Steadily and NREIG, as both insurors are built for rental properties. You may still need a commercial policy due to the high # of leases, but start with the residential carriers. As a precaution, I would also check with the city to make sure your property is staying within the occupancy limits. Many cities have limits on how many non-family members can live in one house. 

Yep, I've seen numerous flips in Austin get foreclosed on or hand their keys back to the lender over the past 12 months. Many more are still on the market. You are correct that the quickest solution is the one that can reduce the damage.