All Forum Posts by: Ryan Kelly

@Alec Jacobs you are going to get 1,000 opinions with this question. I would keep it simple. If you like the property, buy it. If you aren’t happy, renegotiate and terminate if needed.

If you are keeping the property for decades, the appraisal won’t matter much.

@Dean Halpin I'm a local real estate broker and investor here in Austin. I'd be happy to connect. I can also point you in the direction to some of the larger wholesale firms in the market. 

@Rodrigo Barreiro Pujol if your job is in Round Rock, you have lots of locations to choose from . Round Rock itself could be a good target with older homes (for the suburbs) and multifamily options. If you want to house hack, I also like Pflugerville, Georgetown, and Leander. If you choose to go farther out like Hutto, Taylor, Bastrop, Manor and others, just make sure the roommates you want to rent from you also want to live in those areas. Happy to connect if you want to discuss options.

@Mahbod Norouzi as Dan stated, any of the Austin suburbs are still going to be too hot for cash flow with a traditional down payment. You would want to go out about 1-hour away to be beyond the traditional commuters. I would target secondary markets in Texas that could have a price point around $200,000 for a single family home. These would be markets like Killeen, Temple, Corpus Christi, College Station, Waco, etc. The big markets and their suburbs are likely seeing too high demand for "easier" cash flow options.

@Mahbod Norouzi everything cash flows, it just depends how much leverage you plan to use. Austin is a very challenging market for cash flow at a traditional 25% down payment. Most single family properties won't reach cash flow neutral without a 50% to 70% down payment. Multifamily can do a bit better, but may need more CapEx. Happy to connect if you want more detailed data on each sub-market.

@Andrew Caris one bedroom homes are not very common, so you’ll have more luck with two and three bedroom homes, especially if you are also hoping for a garage. Shoot me a DM if you would like to connect and I’m happy to help.

@Joe Black an S Corp is not a great legal structure to hold real estate assets in, so the advice you were given was not wise. I highly recommend reading more about why S Corps are not the right structure for LLCs with rentals. Lots of unfavorable tax implications.

@Stan Tallman assuming you used a TAR contract, check paragraph 15 titled “default.” Are you working with a realtor or real estate attorney?

@Madison Sobol congrats on your purchase! I’d be happy to connect you with several seasoned mortgage brokers here in Austin that we work with. Just shoot me a DM.

@Ken M. Is spot on. I’ve rehabbed several homes in Austin and in the middle of a rehab in SW Austin currently. Plan on longer timeframes and overages. Also, use the current days on market to be realistic when planning your time to sell on the market.