All Forum Posts by: Victor Steffen

Hi Spencer, welcome to BP! A few pieces of advice- multi family inventory is much tighter here than in a lot of other places in the country. It's just not an asset class that ever got built in any sort of real volume here. That being said, they do exist but are moving at prices unwarranted by the rents they can command. Further- on the exit you will most likely be selling to another investor-minded buyer. Check out the sale data on duplexes in Austin and you'll see them moving much closer to asking, even below asking price in some cases (this is unheard of in the SFR space currently). You may do better finding a single family home with multi levels, perhaps the main bedroom on the first floor with 2-3 bedrooms and a living room on the upper level. Lease the upper rooms to roommates. Rooms are moving between 800-1000 per room per month here. Far more SFR inventory at lower purchase prices than multi-unit inventory. Rent by the room is the way to go! good luck !

@Khaled El Khoury

@Antonio Cucciniello is the guy to talk to. He does all data driven market analysis.

@Kdahl Wilson pays huge dividends to those who use it! Good luck!

@Parul Chauhan

Hey Parul, welcome to the fray. I’m staying cash flow positive on each of my purchases in round rock/ Pflugerville areas. Buying under 400k, 4+ beds, 2+ baths, 2000+ sq ft and renting each room for 850-950. More management intensive but it has been working for me and my clients in the north Austin area. Good luck!

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 :) 

Austin TX is one of the country's hottest real estate markets. Capital is flowing in from San Francisco, San Diego, Los Angeles and New York in an effort to capture a piece of the budding tech scene. The market is competitive, but competition does not mean we abandon investment principles. We still believe in purchasing based on numbers. On this call several Austin TX investors will discuss how we have been able to capture double digit appreciation while cash flowing by using a Rent By the Room model. These are seasoned investors who will share the ins and outs of what makes this model successful and how you can use it to break into the Austin market without betting solely on appreciation. All attendees will have a chance to introduce themselves and what they are working on, from there the moderators will present for 30 minutes on how to make the model work and pitfalls to look out for. There will be time at the end for Q&A. Hope to see y'all there! 

Hey I host one on the first and third thursday of each month. we meet at the home2suites off of 35 in S Austin on the first thrusday at 630 and the brewtorium off of dillard in n austin on the third thursday at 630

patience and a heart that serves. you'll do great things in the agency space! Good luck!

Don’t try to fit a square peg into a round hole. Take what each market gives you. Austin/ Denver/ Charlotte are on fire. Use as much leverage as possible while still breaking even and earn your returns from the appreciation in these areas. From there look towards other markets to earn your cash flow. Purchase these properties in cash and earn your returns from the heavy cash flow the property throws off. Plenty of areas in the U.S where you can purchase a 4 family home for under 100k that generates 4k per month (gross). No debt service payment means your net free cash flow will be very close to that 4k number.

One note- generational wealth is built via appreciation. Cash Flow is essential but unless done at a large scale does nothing for your net worth. Use cash flowing properties as a tool to carry your higher value, generational-wealth-creating assets.

ps: here are 3 units for 42k. found in about 2 minutes surfing zillow. find another 3-4 units at a similar price and your cash flow will cover expenses for the high value properties. 

good luck!

@Adah N. I'm a realtor