All Forum Posts by: Sarah Davis

@Brad Hammond thanks for your thoughts. I will definitely say that it needs to be put in escrow. 

There was actually an offer "substantially" higher than mine (they chose mine as it was a lot cleaner, s/o to my realtor for that), so I do not think that I will be able to push closing. This guy needs the funds for another property. 

Howdy all, 

I am currently under contract for a duplex to house hack, set to close May 28, 2021. One side is vacant and one side has a lease until Dec 2021. 

After accepting my contract, the listing agent (he says owner didn't tell him until after the offer) disclosed that the current tenants have not paid rent ($1295) beginning in March 2021. The tenants lost their jobs due to non-COVID related reasons (not exactly sure, but they both worked for the same company and I believe they were fired). 

Two days after accepting my offer, the tenants signed an additional agreement with the current owner that they would begin paying rent again June 1, which is to include $432 per month to make up for the back rent. This agreement states "If rent is unable to be repaid per this schedule, beginning 01JUN2021, we tenants do agree to accept termination of the lease agreement and assume responsibility for any outstanding rent and associated penalties." Not that that means anything. 

Travis County (Austin, Texas) issued an order today (County Judge Order No. 2021-04) that eviction proceedings can June 1 if the tenant has not paid rent for 5 months and the landlord has exhausted all rental assistance remedies. This would allow this current tenant to be evicted beginning July, assuming the county order stays the same. In addition, if they try to stay beyond their lease in January, I will be able to evict them due to claiming a homestead exemption. 

The listing agent claims that the seller is not trying to offload the tenants and that he's using the funds to rebuild another property after an intense snow storm we had in February. 

I've come to the conclusion that I am willing to go forward with the contract with the following provisions:

• The seller will pay the equivalent rent for two months (June/July) if the tenant does not pay according to the additional signed agreement.
• If the tenants do pay,  then I will provide the back rent to the seller. 

Thoughts? 

I couldn't read the full article but if it's referring to south side of the Colorado inside the horseshoe... I could see why it would be a ton of work. 

• A lot of those quarries are still active, and they won't be filled by the mining companies without $$$. 
• Almost half of that area is in a floodplain and of the quarries that have decommissioned, depending on how old they are, the City might not let you fill them as they now offer a significant amount of flood storage (unless you create that storage elsewhere).
• Also, the City has bought out some properties because of air flight noise, mostly along Jet Lane/Patton Avenue. 

Get a roommate.!

Hi Aaron, you mentioned you might do an Airbnb model. Austin has cracked down on non-owner-occupied Airbnbs in a residential zoning area. Most duplexes are zoned SF-3 (single family residential), and even tri and quadplexes are. You might want to reach out to the City to clarify, before moving forward with that strategy. Their website is a little confusing. 

Apply for a Short-Term Rental License | AustinTexas.gov

Edit: I'll add that there are also geographic caps. 

@Jordan Moorhead sounds like you guys are scoring some deals! Congrats on the success of the last one, hopefully the next one works out the same!

Went driving for dollars in south east austin today scoping out duplexes... hoping to find my first deal! Numbers don't really work for anything thats been hitting the MLS.

@Samara Huntley Unfortunately Austin is cracking down on non-owner occupied STR for SFH or duplexes in residential neighborhoods. They won't issue a permit. You can get one for a condo/large multifamily, but they're subject to geographic caps, approval from the property manager, condo fees, etc. Most current STRs in Austin that would be most profitable are Owner Occupied or grandfathered in.

Hi Sam, I am in the same boat as you. Something you may consider is to use some down payment assistance programs to hold on to more cash. You can find them through the TSAHC, TDHCA, or the Travis County HFC. Your current income more than qualifies. I am looking to do this. 

Good luck!

I am currently looking to do this with an SFH. I won't be able to completely offset my living expenses while I'm living in the unit, but it will be at least equivalent or lower.