All Forum Posts by: Manu D.

 Thanks @Jordan Moorhead, we share the same views :-)

Pls work on adding basic features like find user submitted posts first.. I just submitted a new post and I'm having hard time finding it. Thanks!

I'm just getting started with investing heavily (putting more money than else where) on RE because I'm bullish on Austin RE market.. I know there are few posts related to this but they seem to be old and things have drastically changed since then.

I want to ask your opinion on what is going to happen to Austin RE in short-medium term (2-5 years)?

I will start.. I think at least for the next 10 years, Austin will keep growing more than 10% per year. (Assuming no recession, so we will not talk about it for now;-).

Thanks in advance for your feedback!

Thanks @Ryan Kelly for your feedback!

I checked with my lender and they confirmed that both new builds will be closed as primary with 7-8 months apart (with letter to underwriters as this is genuine case). I agree this is speculation on future appreciation but given that I'm paying less than the comp and the plan to hold it for few years with Austin market appreciating, I'm thinking the worst case I would break even. And the builder competition is not a problem as I stated in the previous response. My biggest bet on this is for the fact that investors can't buy new builds and I foresee that will continue for at least couple of years in Austin given the inventory and demand based on my limited knowledge so far, which will keep the resale prices going up.

Thanks @Marian Smith for your feedback!

The builder is selling only 2 houses per month and not selling to the investors. So the resales are selling fast and more than the new builds. Thats why I'm so interested in this. I agree with you on "doubling down" with extra risks, which is what's making me to think twice but at the same time I want to do proper DD before I reject this.

Hello, this is my first post in BP!

I live in a primary home with good equity ($400k) due to recent boom. Recently, I have a contracted a new build ($800k) last June which will be ready in Aug, where the plan is to move as primary and rent the current one. Given that builders are not selling to investors in austin metro, I somehow convinced the builder to sell me second one  ($950k) in the same community as the one I’m building currently. They will let me close first one as primary and then allow me to move to second one once it’s ready in March 2023. The sq ft price for this new build ($230) is coming to less than existing comp ($260). So I’m thinking to buy the second one as well so then I will one primary and two rentals. If I can’t make it to mortgage all 3, then plan is to sell one to close the 3rd.

The concern is rising interest rates and property tax rate of 2.8%. And Third one requires a EMP of 8%. But I’m thinking austin prices will keep rising , so by the time these houses are ready to close, they will already have good equity. Worst case I can sell them immediately after closing.

Given I’m just getting started, I’m not sure if this is a good approach for RE investment. Would like to hear feedback from experienced folks? Thanks in advance!