All Forum Posts by: Matt Studer

@Jeff - were familiar with Lockhart and Burnet, we drive through those towns often. What's going on there that makes a great rental market?

@Swan - I have some experience with renovation/construction and a flip would be a lot of fun for me. But it's my understanding that the only real way to do a flip is having cash for a foreclosure which I don't.

A year and a half ago we bought our first home in North Austin with an attached apartment which has been renovated and is rented out. Last May we bought a duplex in Victoria, TX (our home town) 2 hours south from us. Both apartment and duplex are rented our with great tenants and everything is going smooth.

But now I'm stuck and not sure what type of property to buy or what to do next. I like multi-family because of dual incomes but Austin multi-family is pricey and Victoria has almost none. Any Texas investors have an idea of what to do next? Price range $80k-$150k.

@Jeffrey Long That makes a lot of sense. Your right I haven't quite thought of that far in the future. I guess my thoughts on a trailer would be short term but that seems like a bad decision. I'm going to talk to builders in the area for a more accurate pricing.

Can any of you investors offer up tips on financing the construction without using up my cash? I've always heard the term of using OPM (Other People's Money) but how does that realistically happen? Will a bank give me a loan based off of the equity of my home or the value of those lots and duplex?

Ha yeah that's pretty much what I'm looking for. It seems I could purchase some used trailers for around $15k each. I would think rent in the area would go for $800 a month each. A duplex I imagine would cost around $100k to build in the area and I could get $900 per side.

Anyone been in a similar situation? Usually it makes sense to buy rather than build but the market in Victoria right now seems quite the opposite.

I just closed last week on a duplex in Victoria, TX that came with 3 lots attached. These lots are identical to the one the duplex sits on and is located off of a highway. The oil field rush in Victoria is taking over the rental market and prices are crazy all over town and surrounding towns.

My long term plan is to obtain as many rental properties as possible. Technically I could fit 4 trailers per lot but not sure if thats the best route and what type of tenants that would attract, long term holdup, etc.

Another thought was to build another duplex and keep repeating until all the lots are full. I would imagine this would cost the most and not sure if the return would be that much more.

Any advice? I'm young and just starting out, want to make some good decisions.