All Forum Posts by: Ryan Kelly

@Ben Gradert happy to help. We have hundreds of Biggerpockets clients we've worked with over the years. I also own several rentals in the Austin area myself. Feel free to shoot me a DMand we can connect. 

Welcome to Austin Kevin! You'll love it here. I've been in Austin since 1992 and it's an awesome city to live and work. House hacking is by far the best strategy for people to get into our market. I wouldn't rule out a duplex as we have far more duplex properties than quadplexes. Feel free to shoot me a DM if you want to talk about the market in more detail. 

I actually think it is a benefit to both parties to have professional representation to assist the seller and buyer with these types of transactions. You mentioned you haven't purchased an investment property before or been involved with seller financing transactions. I've worked with many investors in seller financed transactions and an experienced buyer agent would be extremely valuable to you. It sounds like you could have a promising deal, so lean on your experienced agent for guidance and go take action!

You would use a mortgage servicing company just like a typical mortgage. There are many service companies that will manage seller finance notes including the payments, escrow accounts, and documentation. 

Most of the time, I think buying a new property pencils out better than the cost of an ADU. Most ADU's are one bedroom units and rent accordingly. The same money could buy 1-2 full properties that would rent for more, depending on the market you choose.

@Charles Evans Zelle and Venmo do not provide the same protections as a third-party rent payment portal. They don't allow auto payments or automatically add late fees, and tenants would have the option to pull their payment back, which is not ideal. I would read up on the risks before collecting rent with those tools. In addition, you want a separate bank account for the rental property to separate it from your personal accounts. The more you treat it like a business, the better. 

@Anthony McKinney welcome to Austin! I'd be happy to connect anytime to talk Austin and real estate. Just shoot me a DM and I can share contact info.

@Melissa Odom I recommend connecting with a commercial real estate broker to get a broker price opinion on your current value and after-construction value. They can also help you analyze the highest and best use for the property and location. If you need a contact, feel free to send me a DM.

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market. Large down payments or extreme discounts from sellers would be needed to reach cash flow neutral stages. The rental market is expected to stay flat or soft through 2025, then is estimated to start appreciating again once the new supply of multifamily housing reaches traditional occupancy levels. As for appreciation, the Austin market is stabilizing to the higher interest rates and we could see a mild appreciation for 2025. 

@Eric E. I invest with PPR and other income funds through my IRAs. There is no UBIT because your investment isn't leveraged with a mortgage or debt. You are investing IN debt, not WITH it. Hope that makes sense.