All Forum Posts by: Leah Trevino

Wow!! Thanks for all the great info! I will shoot you an email for that lease template. Thanks

@Ryan Leake This map might be helpful to you being out of state. It contains the office locations of some of the largest companies/employers in Austin.
https://cdn1.austinchamber.com...

There are renters of all types here, but I would think young professionals, medical staff, and college students would be the most open to a RBTR setup. 
The Plugerville/Round Rock area has historically been a more family  with kids driven. However, with the ever increasing rental prices in the DT & metro area, there could be an increasing shift in single renters there. The more seasoned investors on this thread would know more about that. 

Thanks for all the input so far! I'm am also looking at House Hacking, MTR & STR options in Austin and curious to know what areas have been working.
I am new to REI, but do know the Austin structure well.

@Jordan Moorhead Do you just focus on just Austin city limits or also consider the little outside guys? (Buda, Taylor, Bastrop, etc)

I have been the most curious about the further eastern area around 130 being one I am less familiar with and newer for development. Any experience there? It seems like just the COA event visitors would not sustain a STR investment, but I could be wrong. Any knowledge if the Tesla has made any substantial demand for renters? (Though I've heard conflicting stories about their longevity)

Thanks!

@Matthew TenneyYay for wanting to join the rrenewable energy fan club. And thanks for bringing up this topic because it led me to check the websites again.

I wanted to install solar panels on my primary residence (condominium) but was denied by the HOA because "I don't own my roof". Such a bummer too because at that time, both the federal government and the Austin electric company were offering panel installation credits that could be applied together. The price to install them would have been next to nothing. I have been patiently waiting year after year for them to join this century and modify the limitation.

So, thanks to you inspirational post, I discovered that they have extended just extended the tax credit program and increased the credit amount. The credit is 30% of the installation and is applicable for both homeowners and businesses. There is a second option for business to get an annual tax credit based on the amount of solar energy usage. However, business cannot utilize both options; it’s either the one time installation credit or the yearly usage credit.

I wasn’t sure if your property would fall under residential or business so I included links to both as well as the a list of states that also offer incentives for energy efficiency. I looks like the federal government is still allowing for both state and federal taxes to be applied for the full credit amount. It did say, however, that tax credits from utilities providers may be subject to taxation.

I hope you are able add these to your community!

https://www.energy.gov/eere/so...

https://www.energy.gov/eere/so...

https://www.dsireusa.org/

Disclaimer: Please pardon any instances of ignorance conveyed below. I am a work in progress.

Greetings!

I am attempting to return to a “House Hack” via RBTR in my owner occupied 2/2.5 condominium in North Austin. I started RBTR very soon after my purchase in 2009. This was highly beneficial and the LTR option coincided with my circumstances at that time. I continued for several years, shaving some years off my morgan terms and adding updates and improvements to the property. I ceased this practice in 2013 due to marriage.

Now (divorced) and carrying the PITI+HOA solo, I am desperately missing that second source of income and the perks that come with it. However, it's been so long that it feels like the entire playing field in the Austin rental game has changed. Additionally, I have no background or professional experience in real estate so I am struggling with initiation and access to vital tools and resources.

Goals in this movement: Apply rental income to continue to chip away at my principal balance. I have a little over 8 years currently remaining. I’d like to zilch that number and move towards converting this unit to a rental property, focusing my attention to the next potential purchase.

Areas where some guidance would highly appreciate.

1. 1.Rental term selection. From the little information I have gathered, it appears there is an increasing movement away from traditional LTR to MTR, STR and RBTR (with multiple individual tenants in one dwelling) with sources like Air BnB as an intermediate. Is my assessment accurate and are there significant benefits for this "choppy" methodology? I am partial to LTRs but I am not entirely opposed to MTR or STR, but only if the benefits are significantly skewed from LTR.
2. 2. Pricing: I have browsed online for a comparable market rate to my “offering”. However, all the rent calculating tools, including BP do not have options to account for shared spaces. Additionally numbers on websites like Apt.com seem to drastically vary for vacant apartment listings.Additionally, how would I determine accuracy of comparability to my RBTR while I am the additional occupant the the home? How to adjust for all bills paid options?
3. 3. Rental Agreement: Almost all my previous occupants were required to a lease agreement, regardless of my personal relationship to them. However, my old resources no longer suffice. Where could I obtain a template for a RBTR/Owner co-hab agreement that is thorough in addressing conditions that are situationally relevant to ensure that all pertinent/legally required information is accounted for?
4. 4. Are there any other educational tools/resources you can suggest would be vital or highly beneficial for my circumstance (Ex. Best practices for RBTR arrangements or just general landlord dos and donts?)

I know this is a lot to ask, so if you only have one single tip, I’ll take it. Each tiny piece of donated knowledge will be added to my Bank of Wisdom for future use.

Onward!

I appreciate all knowledgeable information and guidance that has been shared. I was researching new methods for investment costs reduction and serendipitously stumbled onto this thread.

@Jessica Price I am not an expert or highly experienced investor like some of these helpful individuals. However, your current situation is very similar to my own while navigating through the first time homebuyer process.

Hopefully, I can provide some incite based solely on my personal experience.

I purchased my Austin, TX property in December of 2009, in the wake of the recession.
The the ever occurring rental increases had me thinking just like you stated. "Any investment has to be better than throwing rent money away." The initial idea/plan was to locate a SFR starter investment property and then move on after a couple years. However, FHA occupancy regulations derailed this option.

The property I eventually closed on had an initial PITI that was quite a bit over my last rental apartment. Like many first time home buyers, my finances were limited being only a few years out of college and green in my professional career.

What else is a girl to do but House Hack it! (Although that terms was not in yet born then). I took the owner occupied RBTR approach in a condominium.

The rental income reduced my PITI+HOA contribution to around $350. I continued to RBTR with both friend and "stranger" hack-ees for several years with some periods vacancy by my choice.

A few major end results from RBTR Method:

*Established savings fund for home repairs and other unexpected expenses

*Shaved off 8 years of my loan term with extra payments to principal balance and a refinancing

*Updated/Remodeled about 70% of entire interior, both floors

*Yes, my property has had a substantial appreciation since purchase (a bit more than double)

Granted, my hacking end game was to decrease my cost of living expenses whilst my equity sprouted and grew. Therefore, for my purpose and circumstances, the RBTR Method in an owner occupied condominium was a success.

I do agree with the the others that a condo purchase is not the most expedient or efficient approach for most. Especially those who are working towards establishing a multitude of investment properties and utilizing rental earnings as a sole source of personal income.

Yes, also agree that HOA fees have some definite negatives, but can also contribute to some positives depending on what the fees cover for that particular community.

I also agree with several historical truths about condominium investments that do not occur with SFRs.

Condominium living typically appeals to young business professionals or retirees and not families with children. Therefore, the potential buying pool is limited during resale.

Though I have had a significant increase in property value, it is to the not to extent of SFR in surrounding neighborhoods and in Austin proper overall.

There are a myriad of other considerations regarding both property purchasing and tenant options: Far too many to attempt to properly address in this forum. Feel free to shoot me a DM if you have additional questions.

I hope this was somewhat helpful!