All Forum Posts by: Will R.

@Teage Staunton

 You should look at duplexes, triplexes, and fourplexes. There are a bunch here in the Austin area. If you owner occupy one, the banks will consider it a primary residence. You will be getting favorable financing but on many more units at a time without living in all of them. 

In Austin they call them stealth dorms. http://stopstealthdorms.com/background/ . If you want to hear it from the horse's mouth then wander down to DAC https://austintexas.gov/department/development-assistance-center

Tile. If it is a nice place, use travertine... 

If you like the house and you have time and sweat to put in, I think your best strategy would be to live in it for 2 years while working on it. Then your profits are tax free when you sell. This assumes you are handy and your hourly rate is not too high. If you think there is appreciation ahead in your area, you could even lease it for a couple years before selling and still sell tax free. This is slow money but it is pretty low stress money. 

If you are just getting in, many people do quick flips to build capital. However, if you have a day job, this is a more manageable strategy. 

This guys has a number of strange deals like this. I toured one once. It was an old folks home turned halfway house. It was also overpriced. I think he hits these prices by using seller financing. However, I think it often ends in foreclosure. 

http://www.buttross.com/

As for this specific one. It is overpriced but 1M an acre would not be bad for high intensity. It is currently zoned CS-MU which allows high density mixed use. So, you would not have to do any zoning work. 

@Oren H.

 There is certainly still a shortage. There are a contingent of folks who think we are in a bubble but I do not think Austin will tank. It may plateau but we are not there yet. I am in software and it is very hard for me to hire enough developers here because of the growing demand. Other employers have the same issues. 

The OP was for $150k homes but I think the sweet spot for appreciation is higher than that and more central. 

This market is too efficient for flipping or wholesaling from what I see. There are other avenues though. In Austin, new construction infill can still make great margins.  

@Marek Berry

You can keep the same cuts. You just need to make sure they are not paid until after you are paid. They would only get a smaller cut if there were less than a 15% IRR. This way everyone has the same incentives and you are getting a minimal guarantee of 5%.

I guess I should add a disclaimer here: I am not a lawyer and I am not your agent. These are just my thoughts on how I would structure a deal for myself.  

Not owner occupied. That is not allowed with the 1031.

Awesome! I have a face! Thanks @Robert Perry