Multifamily in Austin Tx

[Robert Tinker]

So far all duplexes and 4 plexes I've come across in Austin are a no go when I run the numbers using Bigger Pockets calculators. Usually several hundred negative. Any thoughts out there. Looks like one would need a huge down payment to actually get any cash flow. But then your ROI isn't that great. Should I look out of town?

[Michael Dang]

Where have you been searching? On the MLS?

Have you tried to connect with real estate agents, brokers, or wholesalers that are investor focused?

Maybe broaden your source of leads which can bring more leads.

I don't know your experience but when searching out of town management could be an issue with smaller duplexes and 4plexes.  If you do consider it, make sure it's a distance away that you are comfortable with.

[Jordan Moorhead]

@Robert Tinker figure out what numbers that work and make offers based off that. The sellers interest is to make the most money possible, not deliver a good deal.

[Justin Kane]

yes, and no, you should definitely keep looking

[Bjorn Ahlblad]

@Robert Tinker MF has gone crazy in many/most markets. Sellers wanting huge numbers and folks still willing to pay. One solution maybe OS or smaller cities. Another is distressed property in a decent area with a fed-up LL. All the best!

[Hans Schmitt]

@Robert Tinker Come on down to San Antonio, we have great opportunities here for investors and we're close enough to Austin that property management wont be too much of a hassle!

[Grant Rothenburger]

@Robert Tinker Never use a big down payment to make a property cash flow, that's not really a deal. Where are you looking for deals?

[Robert Tinker]

@Michael Dang A couple of agents, mostly MLS. I'll need to look harder or nearby towns

[Robert Tinker]

@Jordan Moorhead True

[Robert Tinker]

@Hans Schmitt That's a good idea. Thinking maybe San Marcos too.

[Robert Tinker]

@Grant Rothenburger I totally agree with you on that.

[Robert Tinker]

@Bjorn Ahlblad Yeah I can't believe that people would pay these prices, because be it would be a negative cash flow even if I offered half the price!

[Junior Soares]

@Robert Tinker San Marco's has a nice rent pool with TSU right there in town. Austin is hot right now so deals are a little overpriced if you're a cashflow investor. I feel Austin is an equity play moving forward.

[Stephen Stokes]

@Robert Tinker

I am a buy and gold investor in Austin. Finding cash flow opportunities requires value add opportunity. Don’t expect to get cash flow without putting some work into the property.

[Clint G.]

@Robert Tinker

I know a guy who has several duplexes in Austin. I think he may want to sell one. I'll ask and get back to you.

[Robert Tinker]

@Clint G. That would be great. Thanks

[Jordan Moorhead]

@Stephen Stokes absolutely agree. I have a two unit in east austin that cashflows  great. It needed a significant rehab to get that though!

[Aaron Gordy]

It really depends. One has to be quick moving for the best turn key deals as there are a ton of investors looking at the austin market. If you aren't prepared then it will go by quickly. There are rougher neighborhood type deals where it cash flows that stay on the market for a bit but you have to be able to deal with it. These types of properties are not for the new investor. If you know how to add value such as Stephen and as Jordan have done then one can cash flow nicely but you have to know your submarket as to what kind of upgrades will increase rents.  @Stephen Stokes @Jordan Moorhead

[Charles Long]

@Robert Tinker a lot of investors are willing to pay the high prices counting on long term appreciation and future cash flow rather than immediate cash flow. That mixed with heavy competition has driven property values up, and rightly so in my opinion...competition is the key to a healthy (though frustrating) market.

Also consider the situation of a cash investor who is just looking for a tax haven for his/her money. The numbers they need to create positive cash flow are significantly lower than an investor who needs to finance the property and worry about making a monthly mortgage payment.

As far as San Marcos is concerned, (I live in San Marcos) there is a good rental market here but with some challenges of its own. For the most part you wont find the "on market" deals to be much better cash-flow-wise. However, there are plenty of houses here in need of a good renovation. You also have a captive and infinite tenant pool with the students but there are city zoning ordinances that prohibit student occupancy in certain areas (This is designed to keep the frat-house away from grandma and grandpa Jones) it complicates things. Also, in my experience, students have not been tje best tenants and most of them are looking for 9month leases so the can go home for the Summer.

To create positive cash flow consider larger down payments to reduce monthly obligations if possible. Your cash is safely parked in your home. A heloc can then be a good option to access cash when you need it.

I'll send a connection request if you want to explore some "out of town" options...Good Luck!!

[Danny Webber]

Killeen is your go to market for dups/fours right now that cash flow

[Robert Tinker]

@Danny Webber Doing a BRRR now in Killeen. Sfr