All Forum Posts by: Zachary Barton

Hey @Patrick DiDomenico, a very similar question was asked in a recent forum titled “Austin Vs Suburbs (RR, Leander, Cedar Park, Pflugerville)”. I definitely recommend you read through it.

As far as specific areas go there are some great suggestions on this tread. The Domain area, Leander for the schools + being in the direct path of progress, and many more mentioned here are worth considering. Best of luck and welcome!

I agree with @Costin I. When you factor in PITI + CapEx + management fees vs. current rents, my clients are having to bring around 35% (down payment + closing cost) to the table to break even or realize slight cash flow in the metro area. If you plan to self-manage, awesome, you're still looking at 25-30% down to break even. So, if your goal is to break even or have some slight cash flow while your property appreciates at 7+%/annually just expect to bring 35%+ to the table. It's a fine strategy if you have deep pockets and are playing the appreciation game.

I’m with @Ali Boone this is going to come down to specific area demographics. I can tell you that a simple analyzation of the recently leased comps for each home/area will yield the average days on market for each type of home. Of course, you’re going to want to look at you cash on cash return as well. Assuming the two homes are the same price, and your monthly overhead is similar, you will likely be able to charge more for the larger home. BUT it’s helpful to keep in mind that in a recession it may be harder for people to afford the larger home. Also, if the home is 20 years older, it could have more maintenance issues in the short term.

What kind of investing are you looking to start with? 

Hey Austin, congratulations on getting your license! You cannot hang your license with more than one brokerage or company. Most sales brokerages are not going to focus on generating tenant leads as they will be more focused on finding buyers and sellers. However, there is a great apartment MLS you can purchase access to as a Realtor and many brokers have access to it even if they don't specialize in appartment locating. And theres no reason why you can't continue locating while growing your sales business. I focus on working with buyers and sellers, but I help several people each year in finding apartments, sometimes thats the only option for a client.

The big issue for you will be determining what direction you want to give most of your attention to, sales or locating. Once you have decided that you will be able to pick a brokerage that will best support you with your goals.

Feel free to PM me if I can help with anything!

The question for financing and zoning alike will be, "At what point does chattel (non-real estate property) become real property?", where it can be given a certificate of occupancy and financed. You will have to get the proper approval through whatever bureaucratic bodies have jurisdiction over there property and financing will be a whole different can of worms. Seems like a profitable idea but it’s going to require a good amount of homework.

@Ryan Blake I basically plug in all my known numbers, planned sales price, holding cost, and closing cost. Then I adjust my offer price until I get it to AT LEAST 30k in profit. My risk tolerance won’t allow me to move forward on an offer unless that’s what I’m making on paper. That strategy may not work for everyone but I don’t want to loose money and I definitely don’t be want to loose any of my investors/partners money. 

The numbers look correct but I agree with @Ryan Blake, 18k is a little light and can go right out the window if there are any major repairs needed that are not discovered until you have taken ownership and begun the rehab (foundation, plumbing, electrical, roof, etc.). You should be able to catch most issues in the inspection phase but personally... I like a safety net. My safety number is 30K. Remember, your money is made on the buy side so don't be afraid to lowball if it means keeping your pocket book safe. The worse thing that can happen is the seller says no and you move on to the next one. To me the potential risk out weighs a seller with hurt feelings from a lowball offer.

ABC Home and Commercial Services is well known and reputable. You may also want to check out Perfect Lawns and Landworks.

@Scott Smith he specializes in RE asset protection. Not sure about his experience with SD fraud but if he can’t help I bet he can point you in the right direction.