All Forum Posts by: Matt Stricklen

https://austin.culturemap.com/...

The disincentive to this post is everyone who thinks they've been invited to do the post mortem on behalf of those who chose to share. 

A new meeting has been posted: https://www.biggerpockets.com/...

Please note the new date: Tuesday December 8!

Hi real estate investors. PLease forgive the schedule disruption as we move our normal first Tuesday of the month meeting to Tuesday, December 8th at the usual time , 6PM central.

Here are the usual details:

-Primarily geared for Austin investors with 5 or fewer doors, but anyone is welcome.

-No pitch.

-google hangouts link: https://meet.google.com/qnj-wtxy-bia

Additional Details:

You may have seen my prior post about how we are trying to evolve using feedback from all of you. Eventually, we hope that will include a change of format which will allow us to use breakout rooms. For this month, however, we remain a GOOGLE MEET.

As to format- let's try to analyze a deal. Several of our attendees have wanted practice and feedback with that.

Here is a duplex in Austin that went under contract recently:

https://www.zillow.com/homedetails/5011-Cape-Verde-Cv-Austin-TX-78744/29467862_zpid/

Wait- there are no deals on the MLS, you say. I've heard that. But there is opportunity to learn using the MLS. Take a look at this one before our meet and see how you might answer these questions. Then, we can learn from each other while comparing notes.

• What comps can you find?
• What would the ARV of this property be?
• What questions would you need answers to in your due diligence?
• What do you e$timate for rehabbing this property?
• What would your exit strategy be? ( wholesale/ flip/ BRRRR/ buy and hold…?)
• What is the “buy right” price for this property AKA Max Allowable Offer?

Don’t stress over it- the "right" answers are the answers that get us talking and helping each other discover some “AHA moments.”

We hope you are all healthy and safe and we look forward to seeing you virtually on Tuesday, December 8th.

cheers,

Matt and Kelli

@Alex G

Thanks for the thoughtful reply, and congrats on your newest acquisition, I’m sure many of us will be jealous that you are scoring Austin deals for 154K. That’s awesome! 

I agree with you that there will be outliers who can make it work, and they will be able to use that same P&I calculation to talk themselves into it. But the short supply tells us there’s not a cheaper home that needs work for every buyer, and the demand from the buyers further constricts that tight supply. By definition, most people won’t be able to fit into that outlier picture, they will be closer to that average. And we should acknowledge that the 60K gap is a year’s salary or more for one of the people in a dual earner household, let alone for a single nurse or teacher trying to invest in a starter home. I think it’s a little out of balance, and not in any of our best interest, if a single teacher, or nurse, or cop can only qualify for something far below the median price ( and the supply is tighter below the median price versus above it) - and that’s why these averages are important- they don’t tell the whole story, but they tell what the average conditions in a market are and how that is going to work for or against the average earner. The rising tide should benefit all the ships in the harbor, but those professionals I mentioned, their salaries aren’t rising at the same rate the home prices are. There’s been an exodus of these folks from areas around San Fran, with some living in their cars to try and make it work until they just can’t anymore. I would hate to see that here. Good teachers, good nurses, good cops make for good neighborhoods.

"SmartAsset reports that the average Austin household can afford a home priced at $317,000.

However, the median home value in the area, ... is $378,300"

Where do we go from here?

faster rent growth?

bubble bursting ? ( unlikely)

https://austin.culturemap.com/...

We have been pleased with the performance of our 2/2 duplex units, but one thing to consider is that turnover may be higher, as you get young couples who will often grow out of the 2/2 format within a couple of years. 

Thanks for the interest, and yes, we will be scheduling another meet for Tuesday Dec 2

We did not have our normal first Tuesday meeting this month because we did not want to interfere with anyone's voting.

To all interested parties, we received great feedback from many of you last time and I think  the way to best respond to what attendees  want is to move away from google meet to a ZOOM version that includes breakout rooms. I have not yet $prung for that, and if there is anyone who might like to partner on such, I would welcome that. 

At any rate, pencil in Tuesday Dec 2 and we will post the meeting and format details under BP events once we've nailed down the format. 

How much will it take to get your Hutto place to positive cash flow? Is it the property condition? Is it your equity position? Is that going to have an impact on what a lender will do for you when it comes to Austin?