North Austin Duplex MTR Deal Analysis

[Conner Olsen]

I am house hacking a duplex MTR in North Austin, this is the numbers for my deal.

Purchase Price: 435k in November 2020
Down Payment: 15%
Rehab: ~$60k
PITI: $2,250
Current rent for the other unit: $2,650
Future rent for my unit: $3,000
Utilities: ~$350/month
Vacancy: 5%
Capex and Maintenance: ~$350

Cash flow when I move out: $2,417.50
Cash on Cash: 23%
Current value: ~575k-600k

I obviously lucked out with 2021 appreciation, but almost all duplexes on the market now will cash flow ~$700-$1,000/month using this strategy!

[Michael Win]

Aaron,

My LTRs are professionally managed.  I understand the importance of tenant selection but my duplexes are on the lower end so the choices are from the same economic Pot so they tend to bring more people in to live, never cut the grass, do the bare minimum.  So after they move out, it usually requires new paint, patch holes, some appliances need replacement.   My tenants typically stay 2-3 yrs and wear the place out.  

The MTRs I manage it myself.  People leave it very clean.  I essentially spend  1  hr to bring sheets/towels home to wash, put in new set, run dishwasher if needed.  Cleaners come.  I come back for another 1 hr to replace consumables like paper towels.    I am getting the processes streamlined where I spend about 2 hrs for each turn over x 6 a year, so I think about 12 hours.  Throw in another 10 hrs for repairs I can do myself and I am thinking 24hrs/yr/side.  Rest is just communicating with guest.  

I will say that this is much less time than I would spend if I had LTRs dealing with all the repairs that they requests.

Plus with MTRs, I get to inspect it regularly and people renting these are high income professionals with occupancy of  1-4 people who rarely have any regular get togethers.  LTRs in  my price range may say 4 renters but it ends up 4-8 on a regular basis with weekly parties.   
 

From what I can see, it is night and day.  I expect to have very little maintenance requirements for my MTRs.