All Forum Posts by: Zachary Barton

Correction on my last post... I thought you were implying you wanted to start a meet up.

Keep us updated on the development of this meet up... I would like to attend.

Hey @Adam L. welcome to BP! What kind of investing are you considering? 

1. 2% is a great deal and nearly impossible in Austin and the surrounding cities. 1% is the rule of thumb for cash flow positive properties. Though, as others have mentioned, the 1% rule is no guarantee, but those deals are worth analyzing. Even 1% is hard to find in Austin though. .2-.5% is what you’re more likely to find. I’m finding that buyers need to put down 30%+ to cash flow or break even in this market.

2. You could rent out your current home, stay in your current home and use a HELOC to pull out your equity and reposition it, or sell your current home and reinvest the money elsewhere. There are currently 2 MF properties, with at least one unit that has 4 bedrooms, within 15 miles of Round Rock. So a multifamily house hack is doable. Another novel idea would be to buy a 3-4plex with at least 2x2bedroom units and you and your family occupy 2 of the units.

@James Freeman Assuming you don't need the equity to close on your next property, your money would likely be better served elsewhere. You can be making a 10% return on your equity each year, in this case around $16k/year or $1,300/month NET after ALL expenses including PITI, management fees, and a Capex/repair fund. If you're not able to hit those numbers (or come close), then I would encourage pulling out your cash and hunting for deals. Because you bought 20 years ago its possible your monthly payments are low enough to provide you with that kind of cash flow, so you will have to run the numbers for your situation.

KB had a bad rep for a long time, but they have been working hard to deliver a better product for the past several years. Be careful thought they will get you with the upgrades!

Do you currently live in Austin?

Typically, it does require a large down payment or low purchase price to cashflow in Austin right now.

@Costin I.

@Costin I. I haven't analyzed it as a flip. But I spoke with SEVERAL people who had viewed it yesterday. It was, sadly, unsurprising that one listing at that price point drew that amount of traffic.

I sold one across the street, in Eggers Acres, a couple of months ago that had similar issues. From what I understand the buyers where buy and hold investors and didn't plan on doing much of a rehab beyond the foundation repair, around 20K. At 135K+20K+CC = 160K you could rent it for $1350/month-ish. So, it’s close to the 1% rule... It’s not a home run deal but it seems likea lot of cash heavy investors are willing to buy. On that note, it could make a decent house hack if they buyer puts in a large enough down payment.

200-210k ARV seems about right.

Welcome back Lexi and Matt! I hosted an open house in the same neighborhood this afternoon and I had 3 guest stop by who had been there already. That listing is the talk of the town!  

Hey @Thomas S. that's an excellent perspective "A smart investor would set up a agreement with a manufactured home builder to build homes to their spec, develop a tiny home RV community with them and sell the homes at a 100% mark up to tiny home buyers." ..... that's basically what @Account Closed thanks for the tip, I'll be there on Sunday!