Austin Old Fashioned Bread and Butter

[Kimberly Faucher]

Investment Info:

Single-family residence buy & hold investment in Austin.

Purchase price: $375,000
Cash invested: $80,000

Single family home 3 bedrooms, 2 baths with a split floorplan (read - nicer for house sharing); total renovation in 2017 (read - minimal cap ex and minimal hassle); walking distance to campus, medical centers, city center, 6th street, parks (read - not relying now shutdown public transportation or long commutes).

What made you interested in investing in this type of deal?

My daughter was going to be at UT Austin for at least 5-6 yrs and this was a way to more easily rent by the room (read - positive cashflow), the market is solid for years to come and she can learn the many aspects of real estate investing, ownership and management first hand.

How did you find this deal and how did you negotiate it?

This was a long distance and coronageddon deal. I did manage to visit Austin for a week just when travel was starting to shut down. I learned the neighborhoods and did a lot of driving around. The next 6 months scoured the MLS. Once I found this I asked a very capable, affable, helpful, knowledgable and responsive realtor to do a video walk thru and made an offer the next day. Negotiated down 5000. The owners were motivated as this property was back on market after a failed sale.

How did you finance this deal?

Conventional 30-yr fixed as a second home at 2.6% (so refreshing) with 20% down.

What was the outcome?

I have a nice investment that I can manage, it is cash flowing now and I expect to get a respectable ROI in the mid-future. The most valuable outcome in this deal is having a win for the shared experience of real estate investing over the long run with my daughter.

Lessons learned? Challenges?

Austin is in such demand that things move quickly. There tends to be a dangerous sense of urgency. It took some time to realize doing a BRRR was not realistic in this situation. I needed to zero in on what my real objective was and once that was clear I could recognize the right opportunity when I came across that needle in the haystack.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I would absolutely recommend, Laura Szalay realtor with KW Tom Corzo Group. 512.517.8848