All Forum Posts by: Chander Sri

I bought first single family home (2000sqft) 2 yrs ago in Cedar Park, TX area during peak of market craze at 5% 30yr fixed for around $540k (spent about 10K more replacing hvac etc) with monthly payment of $3600-$4000 and the market corrected sharply to a point comparable homes are not selling even for 440k with a nice pool in them. In the next 1-2 yrs I'd like to move out to either a bigger place or a new new city (job related relocation etc). What are some ideas should i explore so that I can minimize the financial loss in this situation especially given I cannot refinance even if the rates were 0% as my property value won't appraise. Looking back I made some clear very expensive rookies mistakes and learnt them the hard way. I'd really appreciate your inputs.

Some relevant info that may help

- I'm expecting a size able bonus next yr from my stock vests (~$500k)

- the house needs flooring to be replace since the previous owners put cheap laminate stickers that are coming off and counter tops and cabinet repaints.

- homes are not renting quickly in my areas and even if they rent its below $2k.

- there is a airbnb in my street which seem to have good occupancy

Thanks in advance for all your suggestions. Pls ask me if you need more information to help with better suggestion. !!

take your bonus, pay down the home and sell it. not much creativity that can be had. if you try and short sell it the banks could still come back after you and it will crush your credit. chalk it up to a very expensive lesson learned - was it driven by FOMO of feeling like you needed to invest because everyone else was making money?

Thank you!

The decision to buy the first home wasn’t from FOMO. But, when ppl were over bidding and stuff we should have said No and waited. Rather we rushed anticipating interest rates would go up soon back then.

One other thought is fully furnished mid term rentals.. these have worked very good for us in Vegas we get a double or better rent premium on ours.. much less work than STR and you dont have to worry about ordinances or HOA restricting them.. Our tenants have been insurance burn outs ( their house burnt down insurance is paying the rent) to those building Custom homes that will take 12 to 18 months.. JUST the perfect tenant.. all 700 plus fico and never miss a payment and the only damage done in 4 years now was an ottoman that had something hot put on it and the tenant replaced it..

Thanks for your reply Jay!

How is your occupancy rate overall for mid term? How do ppl typically search for mid term rentals. I'll investigate how well this can be applied to Austin market. thanks again!

0 Votes

Austin, Texas

Quote from @Josh Young:

@Chander Sri

Austin (and surrounding area) is in a correction, but has good long term fundamentals, so keeping it as a rental could end up making you a lot of money, it just might take a few(5-7) years. From what you said it sounds like a short term rental could be a good move, and the tax benefits could be significant if you look into the short term rental tax loophole. I personally like long term rentals, but it sounds like the numbers don't make sense and if you cant afford to or can't justify covering that much negative cash flow then another strategy is renting by the room, that works well if you have or can convert to at least 4 or 5 bedrooms.

I know you are probably bummed about this and feel like you made a mistake, but if you can figure out how to hold this property and buy more properties and hold them then you will end up making significantly more money in the long run; you don't build a real estate portfolio by selling.

Hey Josh, appreciate your advise! I'm inclined in this direction as well.

0 Votes

Austin, Texas

Quote from @Chris Seveney:

Quote from @Chander Sri:

Hi All,

This is my first post. My best friend who is a avid BP member suggested to reach out here for help. So here it goes....

Some relevant info that may help

- I'm expecting a size able bonus next yr from my stock vests (~$500k)

- the house needs flooring to be replace since the previous owners put cheap laminate stickers that are coming off and counter tops and cabinet repaints.

- homes are not renting quickly in my areas and even if they rent its below $2k.

- there is a airbnb in my street which seem to have good occupancy

Thanks in advance for all your suggestions. Pls ask me if you need more information to help with better suggestion. !!

Thank you!

0 Votes

Austin, Texas

Hi All,

This is my first post. My best friend who is a avid BP member suggested to reach out here for help. So here it goes....

Some relevant info that may help

- I'm expecting a size able bonus next yr from my stock vests (~$500k)

- the house needs flooring to be replace since the previous owners put cheap laminate stickers that are coming off and counter tops and cabinet repaints.

- homes are not renting quickly in my areas and even if they rent its below $2k.

- there is a airbnb in my street which seem to have good occupancy

Thanks in advance for all your suggestions. Pls ask me if you need more information to help with better suggestion. !!

2 Votes

Austin, Texas

All Forum Posts by: Chander Sri

Chander Sri has started 1 posts and replied 4 times.

Post: Big setback on first purchase. Seeking ideas to get back up and continue investing

Post: Big setback on first purchase. Seeking ideas to get back up and continue investing

Post: Big setback on first purchase. Seeking ideas to get back up and continue investing

Post: Big setback on first purchase. Seeking ideas to get back up and continue investing