All Forum Posts by: Victor Steffen

Here's the data you're looking for click the link . "1 month inventory" means homes are selling at a rate such that if no new homes are added to the market, we will have 0 homes available or 0 inventory in 1 month. For reference- healthy inventory levels or a balanced market is 6 months of inventory. 

Rent by the room only works in a very small percentage of homes. People having success with this model are buying within a narrow search criteria (4+ beds, 500+ sqft per tenant, 3+ showers, plenty of parking, no HOA restrictions prohibiting non-related occupants, proximity to major employers etc etc.) and hiring management that specializes in the model and has systems + methodologies in place to account for turnover, roommate politics, common area cleaning, utility costs.

The best houses are 5 bedrooms, 3 full bathrooms, 2500+ sqft, in North Austin, Round Rock, Pflugerville, cedar park, on corner lots, favorable HOA or no HOA restrictions purchased for around 425k with 20% down. The rooms easily lease for and average of $800 each and tenants stay for an average of 9-15 months. After Insurance vacancy maintenance mortgage management taxes utilities cleaning lawncare we're seeing average cashflows between $150-$200 per bedroom per month. Not bad considering finding even a breakeven home right now seems impossible via a traditional model.

Congrats on the early success! Sounds like your wife is a high-touch salesperson and is really good at it (evidenced by the repeat  and referral business I assume since she no longer needs to chase down leads). What's the goal for the brokerage? Build a team? retain a bigger piece of GCI? Build a business to sell?

If it's to build out a team and take a split of your agents' GCI then that means you or your wife will be shifting focus from high touch salesperson, into a management and support role for the agents in your office. If that aligns with your skillset then go for it.

I would like to start picking up larger tracts of raw land- as long as the property cashflows with 20-30% down the purchase price doesn’t really matter.

What strategies exist to monetize large tracts of property?

Definitely @Brian Chan - though the conventional method of buying a single family home with 20% down and leasing it to a traditional tenant probably not. You can do it with larger down payments, buying small multi family properties that need work and fixing them up to lease at a premium, short term rentals, or rent by the room strategies all generate positive cashflow in austin.

CAREM gathers again this Thursday September 16th to dive deep into the world of light-industrial and warehouse investing with guest speaker and Austin Texas local Brian Smith.

Brian has been an Austin resident for over 25 years. He spent most of that time as the President and CEO of an investment advisory and wealth management firm. Throughout his career he has developed a depth of experience in all types of investments. He has experience in deal structure, and in raising both debt and equity capital. In addition to raising capital to successfully fund numerous real estate projects, he has also invested in many of those projects. His investment experience includes acquiring, managing, and/or developing residential, multi-family, hotel, and light-industrial office/warehouse properties.

Needless to say, we're very excited to welcome him and to add another arrow to our investment quiver! What a great opportunity to learn about another real asset ! CAREM welcomes both seasoned investors and those who are "just looking" . We're a non-assuming group. Come as you are!

Looking forward to seeing everybody Thursday September 16 6:30 at the Towneplace Suites in South Austin.

Cheers!

Vic

*VIRTUAL EVENT*

Learn how to purchase and manage cashflow positive real estate in the nation's hottest markets with veteran RBTR investors. "It's impossible to cashflow in Austin" is a myth being circulated by traditional SFR landlords. See how today's investors are generating 10%+ cash yield in a market poised for continued appreciation with the rent by the room model.

During this hour we will run through a short slide deck and touch on all major points of the strategy so you can decide if it's something you want to implement in your own portfolio. The moderators will stay online after to answer any/ all questions not addressed during the presentation.

See ya there!! Tuesday September 7th at 8pm CST / 6pm PST

Here is the meetup.com link

@Conner Olsen that's killer! regardless of the 1% rule not accounting for all variables, you rarely see deals even coming remotely close to that rent/ price ratio. looking to sell? lol

Hey patrick, What market are you in?