Austin Entry Strategy

[John Vandivier]

I'm trying to enter the Austin market in 2022 and I'm looking for advice about how to do this optimally. Questions and comments are both encouraged!

1. 3-fold motivation for moving there: i. I'm from the area and have friends and family in the area. Free babysitting when I need it. ii. My day job is coding and it's booming for that. iii. My side gig is RE and it's booming for that too.

2. I qualify for FHA so I'm trying to enter via House Hacking. 4 units preferred, but 2-4 OK.

3. I don't see any good deals in Austin proper on the open market. I do see some OK deals, mostly SFH w/ in-law suite, in adjacent towns and counties and I'm fine with that. Specifically, I'm considering Travis, Hays, and Williamson counties. I'm OK with up to an hour commute to downtown Austin but closer is better.

4. I see some OK deals outside Austin proper as mentioned above, but how can I find an awesome deal?

a. I'm considering FHA new construction loan, contacting off-market property owners, or buying and fixing a junker.

b. I think the FHA construction loan is the lowest risk option here so I prefer that...What do you think? Am I not thinking of another option? I think the FHA construction-to-perm could let me get a 4-plex at or under market when I really can't find a 4-plex elsewhere, and maybe lower maintenance or slightly better rents bc new construction.

Thanks all and feel free to connect if you're in the TX or VA market (where I am currently). Open to joint deals in the future, although not for this FHA.

[Jordan Moorhead]

@John Vandivier FHA works better for 2-4, conventional you need 15% down. I don't aim for an "awesome" deal ever. I aim to find deals that make sense and continually buy over time. If you spend time looking for an awesome deal you're very likely to spend a lot of time and end up with no deals. If you do base hit deals you end up with much greater wealth in the long run. The guy who was looking for an amazing deal and spent a year over the last year missed out on 28% appreciation if he would have bought the base hit deal. Buy real estate and wait.