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All Forum Posts by: Arvind V.

Arvind V. has started 5 posts and replied 23 times.

Post: Elon Musk and Brownsville/South Padre

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

@Boone Tyson add me to the roster :) I think I missed yesterday's meetup but happy to jump in for the next one. Please let me have the link if possible. 

Post: TX Investors.. need your expertise in deal analysis

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

Your NOI seems high assuming rental of $2000pm. Insurance, Tax, Maintenance and Vacancy will likely take a bigger bite out than just $100 a month.

Assuming you've down inspections and low probability of any large Capex.

As already mentioned, 5-6% appreciation is reasonable.

At 25-30% down the property should cashflow nicely. Have you spoken to a bank about underwriting yet?

Looks like a good deal overall.

Post: Big Bear, Little Mess

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

@Account Closed - congratulations! Sounds like a great first step.

My partner and I are also planning to build an STR property in Big Bear Lake. Would love to hear more from your experience and share ours as we go down this road.

Post: Typical MFR cap rates in East Austin

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

Thanks for the response @Bryan Noth! Id say the asset would be close to A class as it would be a new building in the MLK or Mueller area. It may not have a swimming pool and common amenities but good quality construction. I expect the expenses to include insurance, landscaping, and taxes but not a lot of repair or Capex as it will be a new building.

Post: Best investment locations in Austin

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9
Originally posted by @Ceryn Chen:

@Victor S. I had to over bid $25k on my house and put majority down, it was extremely competitive

Whats a Heloc and 90% ltv?

HELOC - Home Equity Line of Credit. Something you get AFTER a mortgage because its more expensive...

LTV - loan to value. the ratio of the lion amount to the (bank's estimate of the) value of your house.

Post: Best investment locations in Austin

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9
Originally posted by @Ceryn Chen:

@Aaron Gordy hi Aaron! Yes some mortgage referrals will be great! Where exactly at the domain do you recommend with the appreciation potential?

I am actually looking to move myself closer to the domain/downtown , and get a roommate to live there with me. The the roommate rent + the rent from my current house (once i rent it out) to help pay off my mortgage for the new place . Is that a good strategy?

So this strategy *could* work but you definitely need to figure out the exact numbers with a lender. I can see from the other posts that you're getting some referrals. I am happy to help once you have some information to share (being an ex-banker myself). 

Post: Typical MFR cap rates in East Austin

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

First time MFR investor.

What sort of cap rates can one expect for multi family - say 8-12 unit - apartment blocks in East Austin? Specifically I’m looking at MLK and Mueller. I am sure rental yields are low given the kind of appreciation we are seeing.

And is it ok to assume a 40% expense ratio (roughly 25% would be taxes and 15% would be vacancy and repairs).

Post: Shipping Container Homes in Austin TX

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9

Hey @Scott Mac - you're adding no value to the conversation. You're welcome to your opinions but the conversation is not about your opinions on container homes. Someone wants some information on container homes in Austin. Do you have something to add which can help them?

Post: Shipping Container Homes in Austin TX

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9
Originally posted by @Scott Mac:

To me this seems like sub-standard housing and not a benefit to the community.

...

Just my 2 cents.

Take a look here : that's just one of maybe a 100 companies in America doing this kind of work with containers. Doesn't seem to be consistent with your assessment.

Post: Shipping Container Homes in Austin TX

Arvind V.Posted
  • New to Real Estate
  • Austin, TX
  • Posts 24
  • Votes 9
Originally posted by @Marian Smith:

I was being serious.  I don’t know what “very friendly to containers” means but I was rather surprised they were not allowed on residential zoned lots in the city limits of Amarillo.  And so I would certainly check with any city before buying and relocating one in city limits on a residential lot.  Could save some heartache.  Are there container adu’s in some sections of Austin?  Btw I have always thought the container dwellings and the tiny houses have not made a lot of sense due to cost per square foot finished out vs travel trailers or site built sheds/buildings...but I have never delved deeply.  Just napkin estimates. 

The cost of container homes typically would run to $25k per container (finished at a typical builder level) for a 40' (roughly 350sqft) container. Thats not including slab and utility hookups. Multiple containers can be added to make bigger units so they don't have to be just ADUs but main houses - for example use 3 to get roughly 1100 sqft.

So apart from the time frame saving (say 3 months instead of 9 months), there is moderate cost saving over even the cheapest stick frame one can find in Austin. That may not be the case in say Amarillo.

In an urban context, containers make more sense in infill lots in cities with high land and labour costs.

Austin city treats containers no different from new homes. The only constraint is that they expect you to build it on-site which increases the costs. Those are the ones given above. If one could build offsite and drop it in place, there could probably be a further 20% reduction in cost and time.