My husband and I contracted a new home at $250k in a small community of the northwest area of Austin, and shall be expecting to close it sometime in June or July. Generally speaking, the home is in a good location (convenient and in a very good school district), and the neighborhood is nice and small, with 70+ lots and all the lots were already sold out.
This is our first property here in Austin. Although our primary intention to buy one was hopping to rent it out, however, as both of us are new to the market, we decided to consider where ourselves wanted to live as well, as a ‘backup’ in case we couldn’t make it. Not long after we signed the contract, an agent contracted one while a CPA came and did 2. Both the agent and the CPA have their own homes and bought the houses purely for investment. Now, what am I going to do with so many rental properties coming out at the same time, at the same location, even with the similar bed, bath, and square footage, even not mentioning in such a soft market?
I am thinking trying something creatively, like L/O, L/P, sell with owner finance, etc.
We have a good credit score (pre-approved 94% LTV) and have the fund to down 50k (20% of $250k, to avoid the PMI) and to keep the property. I believe the property will have good appreciation, as rarely find new homes below $300k in the area. But the challenge is what I could do to improve the cash flow. I contracted the property before I came to this site, I might do it differently today …, well, here are the numbers,
$1,900 rent (the rent range is $2,000 - $2,200 per month, but I believe it might be lower as the competition)
$1,200 loan monthly payment (6% 30 years for $200k, could be better)
$470 property tax (250k @2.2506% per year)
$9 homeowner’s association ($105 per year)
plus insurance, etc.
What would you do with this situation? Could you please help :-\ ?
Thank you very much indeed 8)!