A quick glance at housing affordability in AustinMedian Household Income App (Forbes): $73,493 ($6,124/mos)Cost of Living (Forbes): 15% above nat'l avgMedian Home Cost (SFR-ABOR Stats): $302,250Assume 5% Down Payment Conventional Loan- 30 year amortization- $15,112.50 down pmt + any closing costs• Percentage of residents with less than $1,000 saved: 56%• https://www.gobankingrates.com/…/…/americans-savings-state/…- $287,137.50 amt financed- 4.375% interest rateHow the payment looks:PI= $1,433 mosIns= $105 mosTaxes= $458.33 mos (Assume $5,500/yr)HOA= $25 mos$2,021.3/mos PITIDTI’sHousing ratio= app 33% @ median income ($2021/$6124)FHA should be at 31% or less with Conv/VA/FHA being around the same although all have exceptions in placeTotal DTIThese hover between high 30%’s to manually underwritten total DTI’s in the 50’s or higher depending on the programs@ 45% Total DTI Ratio and assuming the above PITI pmt that gives a borrower approximately $734 per month in all other creditor debt (cars/cc/personal loans/etc)These numbers are not perfect but are rather a quick illustration of current housing affordability in Austin for Retail Buyers.Summary: Housing is becoming less and less affordable in the COA for end retail buyersAssuming increases in property taxes/insurance/interest rates on the horizon how does this affect us as investors?

@Cody L.There are several thousand taxing authorities in Texas and a low  percentage participate. 

Good call on those websites, and poverty percentages.

Is the investor expecting a percentage of the gain on the sale of the house?

He was immediately on the phone with two neighbors accross the street with pickup trucks and yes he was out the same day, signed the agreement with keys returned and then I gave him the cash.For you, you could project the cost per day in rents not received multiplied by the amount of days he will be there with the court date & Sherriff serving the eviction and offer the tenant a percentage of that cash in his face and see if he takes the money and runs, freeing up the apartment.

You’re talking percentage of ARV......% of fixed up price.He’s talking % LTV , unless you misunderstood, which is a Loan percentageYou guys need to get on the same page.

Is there a hard and fast rule based on a percentage?

I personally use the percentage route myself, for my area.

Account ClosedIf a member/partner will be paid for some services outside of his right to earn a 33% profit/loss percentage in the LLC's income - he can be compensated via guaranteed payment.You will not be required to issue him a 1099.

Anyone else running into issues with putting a small percentage down?