All Forum Posts by: Brad Shepherd

I'm looking at a small duplex near downtown San Antonio. Great cash flow area with low prices. This property, however, sits right on the I-10 frontage road, with the front porch literally starting at the freeway traffic. There is a back alley access for parking. My concerns are getting near market rents, who would want to rent it, and one day selling it, knowing that there would be a limited market for it. For cash flow, assuming decent tenants and near market rents, the numbers are great.

Anyone else have experience with something similar or have ideas on what else to consider, or whether this is just one to pass up? There are renters in houses a few doors down, in the same situation, but I can't find out what they're paying. Plenty of resale comps nearby, but for houses that are tucked back in the neighborhood.

Thoughts? Jump in, or run away?

Did you skip the Rehab part? BRRR assumes you bought it in need of repairs and fixed it up, thereby forcing appreciation and increasing that LTV spread. . .and made a cash our refi possible if you want to go that route. If you did work on it it, then sure, in a year, or however long your lender requires, a new appraisal will/may provide that spread.

Good point. It seems like there are a lot of traveling nurses coming here already. That should only help.

Thanks @Hugh Ayles. Yes, I keep close tabs on that stuff since I'm in the game. STR rules currently only apply to stays under 30 days, so doing 31+ keeps me out of those rules.

That's interesting about your property near there. Makes sense. 12th Street seems to be an "entertaining" dividing line.

I have a house in far East Austin (just east of 12th and Webberville for those familiar with the area) which I originally intended as a flip, but now I'm in love and can't let it go. Kidding, but the full story is much longer and boring.

I have one property I rent as an STR and I'm considering doing the same thing for this house, though it's much further outside the city center and a 20 minute drive from where I live as opposed to a one-minute walk. One thought I've had is to go with a mid-term rental approach making it a 31 day minimum rental, renting the whole house. Then I talked to another local investor who's renting his out by the room with a 31 day minimum. He's even further out of town but crushing it. Says he gets a lot of traveling nurses.

I can't get my head around strangers being ok sharing a house with another stranger, how to handle the make ready at turnover, and if some potential guests are going to want to meet/vet the roommates.

The upside is the increased revenue potential. The downside - ? Are there potential roommate issues? Do I have to worry about mixing genders? Other hassles? Has anyone done the roommate STR scenario before and able to offer advice? Any guidance on the mid-term plan would also be welcomed.

Sure thing. I think that might be the exact solution to what you're looking for.

Check out Citracado. They sell late mortgage lists. 

If you sell now, all the closing costs you experienced on purchase, the fact that your payment over the last year have paid very little towards principal, and then closing costs upon selling, that turns into a very expensive transaction. Renting it in one way or another may be best in order to avoid that, and how knows what happens in the future with the family situation. Perhaps you'll be freed up again and would be glad you hadn't incurred the loss of selling the house.

Good luck!!

This topic has been discussed in the city council a lot recently. Here's a summary from their October discussion. 

"Just minutes before the clock struck midnight, City Council approved the last amendments to the short-term rental resolution. The amendments, though not yet codified, were fairly significant. Most significant was an amendment from Mayor Pro Tem Kathie Tovo that will “phase out” commercial Type 2 short-term rentals in residential areas. Tovo also proposed amendments to make short-term rentals ADA-compliant and impose a 3 percent cap on Type 3 rentals, which are located in multifamily buildings. Both of those amendments failed. Council Member Leslie Pool proposed the last amendment of the evening, which asks staff to lower fees on Type 1 STRs and raise fees on Type 2 STRs in a way that is revenue neutral (the exact fees have yet to be worked out). That amendment also passed. Now that the resolution is complete, the ordinance process will move through the boards and commissions and Council committee process before heading back to City Council, again."

In November they put a moratorium on Type 2 licenses. Here's a link to a report on the November meeting. Point being, we've got a crazy mayor in right now and this topic is in flux, so the answer to your question could change monthly.

That said, for Type 1 licenses, the path still seems clear...and lucrative.

Welcome to the real estate world Abha! Tons of resources here so great job for starting to review everything. On top of that come out and network! Tomorrow (every Thursday) at 11:30am, lunch at Big Daddy's just off of 183. Great group of fellow investors to learn from.