With 100 homeowners who received a cost estimate only 5 remained in the program due to costs of a single conversion climbing up to $1M...it's just not worth it.https://citylimits.org/2023/03/13/in...about-cellars/If there was something in place that was more affordable, I'm sure more homeowners would be willing to take this route, myself included, to meet the city standards.

@ Hannah MekschI'm working with RPC invest (Ron Phillips) company...Ask them to set-up a profile for you so that you can get more details about the properties that you are looking at.Rehab house has the scope of work listed.More pics and etc ...Look to buy my 1st before Dec. and cost segregation for taxesHope this informing help outCheer cheer 

House hacking in Austin is a cost-effective real estate strategy.

For example, if the cost of your time to self manage is $50/hour but you have something else you can do that's valued at $100/hour, you should hire someone else to manage for you.

There's < 2 months of seasoning for the purchase, cash into the deal is ~$975k w/o rehab (minimal planned so far - turnkey), purchased the property for 35-40% below assessed value, 825+ FICO, and would optimally like to pull out $975K-$1.15M of equity.Main scenarios we've thought of to accomplish this are: 1) structure sale of property from SMLLC to self and secure 30-year new purchase financing on deal (unsure if legal and tax implications if above initial cost basis)2) delayed financing (LTV restrictions a concern)3) cash out refi (seasoning concerns)4) DSCR (seasoning and rate competitiveness concerns)5) one of the above plus a HELOC, personal loan, etc.?

He is willing to deduct money off the cost of the building for the needed repairs and just lower the price for me to do the work.  

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

And it's wiped out by the higher costs mentioned. 

The company stated, "The closings were brought about by the rising cost of doing business in California."

Yearly net cashflow after absolutely all costs and a margin of safety should be between $15,000 - $20,000.Lessons learned?