All Forum Posts by: Travis Washington
Travis Washington has started 32 posts and replied 81 times.
Post: Estimate Furnishing Cost
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Hi all,
What is a good estimate furnishing costs for a 3bd/3ba 1800 sq ft STR/MTR?
I’m budgeting about $1,500 per room, so $8,000-$8,500 to include the LR, DR, kitchen, and outdoor space. Is that a good estimate?
Interested to hear and gather datapoints from others.
Thanks!
Post: STR Favorite Metrics?
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
What is the minimum COC% return you all need to pursue a property as a viable STR investment?
Post: BnB Formula Experience & Review
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Anybody have experience using Brian Page’s BnB Formula program and can provide their review of it? This is for the $10K scholarship program. Is it worth it? Did you find it valuable? What was the best and worst thing about the program? What were your results?
I’ve found a few discussions from years ago on the program and looking for more recent feedback. Thanks!
Post: Anybody doing AirBnB Arbitrage in Austin, Dallas, and/or San Antonio?
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Thanks, Sarah. DM’d.
Post: Anybody doing AirBnB Arbitrage in Austin, Dallas, and/or San Antonio?
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Wow, Dallas banned them on SFHs? That’s news to me. Good to know.
Post: Anybody doing AirBnB Arbitrage in Austin, Dallas, and/or San Antonio?
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Interested to hear insights of those currently doing this in these three cities. Have you had any issues with the city regulations regarding STRs using this method? I know Austin is a bit stringent with there regulations.
Post: Sell or Rent: Austin
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Originally posted by @Victor Steffen:
I think it's fair to say you won't lose money by renting it. If you sell it you remove yourself from the potential appreciation wave caused by (as you said) the housing shortage. If there's no need to sell, why kill the goose? You'll walk away with 100-125k if you decide to sell... hooray. Unless you have a plan for that 100k that outperforms the current asset, I say hold onto it. Make yourself a nice little real estate collection :)
My guy.✊🏽
Post: Austin Area: Sell or Rent
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Originally posted by @Stephen Stokes:
@Travis Washington
Based on your numbers, assuming $200k in equity and $112.50/mo cash flow (75% rents minus PITI) equates to 0.675% cash on cash return....not a great COC return. Can you get better cash flow investing somewhere/something else? Do you need the tax advantages of depreciation to help offset any earned income?
90% rents minus PITI is more realistic in this situation. Using 75% is way too conservative given the dynamics of the Austin renter marker (had 8 showings and 5 applications in first 48 hours), location of the property in a sought after neighborhood, minimal maintenance issues due to newness, and being self-managed. At 90%, that's still $3,300 of cushion per year for uncertainties which is more than sufficient. 75% would put it at $8,250 of cushion per year which is too high IMO.
And the other point above, a positive cash flow in general in Austin is a rarity.
Post: Austin Area: Sell or Rent
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Originally posted by @Rick Reeder:
I'd personally want the appreciation you're likely to see in Austin, assuming it is somewhat close-in? Maybe not the highest-best cash flow, but if that's not your primary goal, having anything that cash flows in this town while appreciating is like gold. I've sold a couple of houses in Austin between 2004 and 2015 and I wish like hell I still had them.
Hit it on the head. It is pretty much impossible to find a cash flowing property here. So to have both I see as a premium to me.
I'm also thinking I could still utilize a HELOC to still tap into the equity and leverage it for other properties.
And although you no longer have those properties, I’m sure you were able to lever them up to other properties well!
Post: Sell or Rent: Austin
- Rental Property Investor
- Austin, TX
- Posts 89
- Votes 13
Hey BP fam,
I’ll try to keep this short and simple. Have a primary home moving out of and analyzing whether to sell or rent. Stats:
-PITI: $1950
-Rent: $2750
-Current Loan Amount: $300K
-Current Value: $475K -$500K
Other factors:
-Interest rate: 2.75%
-House was built in 2018 so maintenance and repair should be minimal
-Current housing inventory in our market: 0.2 months
-There is a housing shortage going on right now that doesn’t show any signs of slowing down. Selling or renting are both too easy.
-Moving into another property in town to house hack (that we’re already up $40K in equity on and have a great rate of 3.375%) so we’ll be in the area to self-manage.
What would you do? Interested to hear what fellow investors here think about the situation.