House Hacking in Austin

[Rodrigo Barreiro Pujol]

Hello, I am 26 years old, single, and moving to Austin TX in the next couple of months. I have set a goal to save up at least 25k in 1 year to invest in a house hack, whether that by a duplex triplex or fourplex. My 5-year goal is to own as many multifamily properties as I can, ideally each of them cash flow. I know I can probably house hack my way to 5 properties in 5 years, but I assume I'll probably learn more efficient and aggressive ways to scoop up more properties as I complete my 2nd-3rd house hack, so that I can start picking up more than 1 property per year.

I don't want properties that will take a lot to fix up, I'm fine with cosmetics and do-it-yourself type things. I am looking for feedback on this plan, tips I should know, whether or not 25k cash is a good starting point, and if there is a better way to snowball rather than just househack 1 property per year. 

[Wale Lawal]

@Rodrigo Barreiro Pujol

It's great that you're setting ambitious goals for real estate investing at a young age. Your plan to save $25k in a year for a house hack in Austin, TX, is a solid starting point. Here are some tips and considerations to help you along the way:

The real estate market in Austin is renowned for its vibrancy. Look at market trends, neighborhood values, and property values to find homes that meet your needs and areas that have room to expand.

For someone just starting out, house hacking is a great tactic. You may drastically lower your living expenditures and increase your capacity to save for future investments by renting out some of your units while you live in others.

Starting with a duplex or triplex is a sensible choice, given your aims and money. It maximizes your potential for income flow while letting you dabble in real estate.

It is a great benefit that you are prepared to work on do-it-yourself projects and concentrate on little improvements. Using this strategy can help you save money on improvements and eventually raise the value of the house.

Make connections with nearby real estate agents, go to gatherings, and make use of BiggerPockets and other educational materials. Gaining knowledge from seasoned investors and expanding your network might lead to insightful possibilities.

A reasonable starting point is to have $25k in cash, but keep in mind that there may be other charges to consider, such closing fees, property management, and unforeseen maintenance. The secret to successfully managing real estate investments is to keep your finances flexible.

It's a great beginning step that you want to house hack in Austin, Texas. Keep your eyes on the prize, never stop learning, and be willing to modify your plan of action as you get more experience. You may create a profitable real estate portfolio over the next five years by being diligent and making wise decisions.

Good luck!