All Forum Posts by: Sarah Davis

Missed this event, but would have loved to hear this. Any plans for another one?

For better or worse, I've noticed homes in Franklin Park being flipped pretty consistently. As far as location, it's is a prime spot for accessing central Austin and the airport. Curious to hear BP Austin community's thoughts on this neighborhood that historically has been pretty rough. 

Currently trying to buy my first property and this is an area within my price range. 

@April C. good point April! Thanks for that info. 

Thank you everyone for the responses!

@Victor Steffen that appraisal gap is definitely something I’m worried about. I’m working with my realtor, to give my best offer I can. 

@Joe Scaparra I actually really considered a duplex, but the comps for such a property seem to be rising above the purchase price limit for the programs I’m using ($460k). I’m definitely still keeping an eye out to see if one pops up, but I wanted to keep myself from living in “fantasy land” as the BP podcast folks say.

@Stephen Stokes & @Danny Webber I’m definitely going to get the biggest house/lot I can (all other factors considered) for the price point I’m looking at, but the 1,250 was more realistic. I’ll definitely gravitate more towards properties with all the things that you two have mentioned.

@Lynn Wise thanks for the encouragement!! Reminding myself daily that this is a patience game to what for my good deal. 

Howdy BP crew, 

I’m a young mid-20s civil engineer and have been stuck in analysis paralysis with regards to buying my first property. I currently rent ($1140/month) & work around the Sunset Valley area in southwest Austin with a $75k income. 

Please poke holes in my plan (or give me the nudge to JUST DO IT already). A couple close friends of mine bought homes and I’m concerned I’m getting FOMO or being rash.

The Plan:

While my income still allows it, I would like to take advantage of various DPA and MCC programs available to those who make less than certain Austin MFI. These programs offer forgivable 2nd mortgage or grants for various percentages of your loan amount 3-5%, typically with a higher interest rate (set by the program administrator) than what I would get through a traditional lending company. The MCC is a dollar for dollar tax credit for 20% of the interest (can be recaptured).

My goal is to purchase a 3BD/2B+ SFH <360k (purchase price limit for the programs above), ~1250 sqft in south Austin, likely 78748, and house hack.

Assumptions:

- Purchase Price: <360k

- DP: 3.5%

- PI = $1512

- Taxes = $465/month ($5580/year, I looked up actual tax values for comps in this price range. Appraisals for taxing purposes are typically lower than actual market values in Austin. How does a recent sale of the property affect this?)

- Insurance = $120/month ($1440/year)

- PMI: $174/month (0.06%)

- HOA: $50/month

Total: 2,321/month

with MCC : 2,131/month

I plan to bring on 2 roommates, or 1 roommate and Airbnb single room to offset this by $1300/month or $650/month/room. 

Bringing my total liability to $831 plus ~$250/maintenance, so generally, around my current rent, which I am okay with.

Possible exit strategies: 
Realistic long-term rental in this area I think could rent for $1800-$2100 and potentially an STR for $2500-$3000/month. I also don't think I would have a problem selling in the future in the Austin market. 

Specific Questions: 

- Am I being too specific in my area? Would this be a realistic play for further south closer to buda/kyle or in the onion creek area?

- It's not technically cash flowing, but I need a place to live and I think this is the best investment opportunity at the moment. Are there other options I'm not seeing? 

&& if this is a good strategy (ish) wish me luck in waiting for my property. :)

Thank you all in advance!