Austin Real Estate BlogRecently posted or modified blog postshttps://www.themoorheadteam.com/blog/Copyright TheMoorheadTeam.com2024-02-19T08:02:19-07:00tag:themoorheadteam.com,2012-09-20:23528Navigating High Interest Rates with House Hacking: A Strategic Approach to Real Estate InvestingNavigating High Interest Rates with House Hacking
In the ever-evolving landscape of real estate investing, high interest rates pose a significant challenge for investors looking to maximize their returns. However, even in such a financial climate, house hacking remains a viable and, indeed, a strategic approach to real estate investment. This blog post delves into the reasons why house hacking can be a great idea even when interest rates are high and making deals work seems daunting.
What is House Hacking?
House hacking involves purchasing a property with multiple units or extra space, living in one part, and renting out the rest. This method allows homeowners to reduce or entirely cover their mortgage and living expenses through rental income. House hacking can take many forms, from buying a multi-family property, renting out basement apartments, to leveraging short-term rental platforms for spare bedrooms.
The Appeal of House Hacking in a High Interest Rate Environment
1. Mitigating Mortgage Costs
In a high interest rate environment, the primary concern for most buyers is the increased cost of borrowing. House hacking addresses this concern head-on by generating rental income that can be applied directly to the mortgage. This not only helps in managing the monthly financial burden but can also significantly reduce the effective interest rate paid over the life of the loan.
2. Building Equity in a Tangible Asset
Despite higher interest rates, the principle of building equity in a property remains unchanged. House hacking accelerates this process by using rental income to pay down the mortgage faster, potentially allowing for refinancing at a better rate in the future or leveraging equity for further investments.
3. Learning the Ropes of Real Estate Investing
For novices, house hacking serves as an excellent entry point into real estate investing. It provides firsthand experience in property management, tenant relations, and the financial nuances of real estate, all while mitigating the risks associated with standalone investment properties.
4. Flexibility and Control
House hacking offers a level of flexibility and control unmatched by other investment strategies. Homeowners can decide on the rental arrangement that best suits their lifestyle, whether it’s long-term tenants, seasonal rentals, or short-term stays. This adaptability is particularly valuable in uncertain economic times, allowing investors to pivot strategies as the market changes.
5. Tax Advantages
Owning and operating a rental property opens up a range of tax deductions, from mortgage interest and property taxes to maintenance and operational expenses. These benefits can offset the impact of high interest rates, making the overall investment more profitable.
6. Mortgage Refinancing
Mortgage rates aren't fixed and you can refinance if rates drop. Always make sure the deal works with the current rate and make sure you're not holding out for a lower rate just to make your investment profitable.
Making House Hacking Work in Today’s Market
To successfully implement a house hacking strategy in a high interest rate environment, investors should focus on:
Thorough Market Research: Understanding local rental demand and pricing is crucial to ensuring your property remains competitive and profitable.
Careful Financial Planning: Account for all potential expenses, including higher mortgage payments, to ensure the rental income will adequately cover your costs.
Quality Tenant Selection: Reliable tenants are the backbone of any successful rental property. Prioritizing tenant quality can lead to stable rental income and lower turnover costs.
Efficiency Upgrades: Investing in property improvements that reduce maintenance costs or enhance rental appeal can increase profitability. Things like LVP flooring, scuff proof paint and tile bathrooms go a long way.
Conclusion
While high interest rates present challenges for real estate investors, house hacking offers a unique opportunity to mitigate these obstacles through strategic planning and execution. By leveraging rental income to offset mortgage costs and building equity in a tangible asset, house hackers can navigate the current financial climate with confidence. Whether you're a seasoned investor or a newcomer to the real estate market, house hacking provides a path to financial independence and investment savvy that endures, regardless of the interest rate environment.
House hacking isn't just a real estate investment strategy; it's a lifestyle choice that offers financial freedom and educational growth. In a high interest rate environment, it becomes an even more critical tool in an investor’s arsenal, turning challenges into opportunities for growth and success.2024-02-19T07:54:50-07:002024-02-19T08:02:19-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:22739Buying in a Declining Rate MarketWhile we don't know how fast rates will go down it does seem that they will and that will certainly affect the real estate market. It's important to understand how declining interest rates affect the market so you can make the best decisions. While we as Realtors have no idea when and how much they will go down we do know that when they do it affects the market so here's a quick overview!
Understanding the Impact of Declining Rates
1. Lower Borrowing Costs: Declining interest rates mean lower borrowing costs. This can significantly reduce the total amount you pay over the life of a mortgage.
2. Increased Buying Power: Lower rates often increase your buying power, allowing you to afford a more expensive home for the same monthly payment.
3. Competitive Market Conditions: A declining rate environment usually leads to a more competitive market, with more buyers vying for properties.
Strategies for Buyers
1. Act Quickly: In a declining rate market, timing is crucial. Rates can fluctuate, so it's beneficial to lock in a low rate when you can.
2. Get Pre-Approved: Pre-approval for a mortgage gives you a clear idea of your budget and shows sellers that you are a serious buyer.
3. Consider Refinancing Options: If you already own a home, declining rates might be a good opportunity to refinance and lower your monthly payments.
Navigating Challenges
1. Rapidly Changing Market: Rates can change quickly, impacting your borrowing power. Stay informed and be prepared to act.
2. High Demand for Homes: Increased buyer competition can lead to bidding wars. Know your limits and avoid overstretching your budget.
3. Appraisal Discrepancies: In a rapidly moving market, there can be a gap between the selling price and the appraised value. Be aware of this possibility. This can be another chance to negotiate the price and our contracts have contingencies to protect you against a low appraisal.
Long-Term Considerations
1. Market Fluctuations: Real estate markets are cyclical. Today's declining rates might rise in the future, affecting resale values and demand. Conversely they may also continue to drop pushing your price up faster than normal appreciation!
2. Total Cost of Ownership: Consider other costs associated with owning a home, such as property taxes, insurance, and maintenance.
3. Investment Horizon: Think about your long-term plans. If you plan to stay in the home for many years, short-term fluctuations in interest rates may be less significant.
Conclusion
Buying real estate in a declining rate market can be advantageous, but it requires careful planning and a proactive approach. Stay informed, understand your financial limits, and work with experienced professionals to navigate the market effectively. This approach will help you make a wise investment decision that aligns with both your financial and lifestyle goals.2024-01-15T08:21:46-07:002024-01-15T08:28:50-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:21989What is a Home Warranty and Do I Need One?Understanding Home Warranties and Residential Service Contracts
When you purchase a house, you're not just buying a structure; you're investing in peace of mind and the promise of a safe, comfortable place to call home. However, this peace can be easily disturbed by unexpected repair bills for home systems and appliances. This is where a home warranty comes into play. In Texas, these warranties are often referred to as Residential Service Contracts. But what exactly is a home warranty, and is it something you need? Let's explore.
What is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of many of the home system components and appliances that break down over time. Unlike homeowners insurance, which covers damage from events like fires or natural disasters, home warranties cover systems and appliances that fail due to age or normal wear and tear.
The Texas Perspective: Residential Service Contracts
In Texas, home warranties are commonly known as Residential Service Contracts. These contracts offer similar protections as home warranties in other states but are regulated under specific Texas laws. They are especially popular in Texas due to the state's unique climate and housing features, which can contribute to the wear and tear of home systems and appliances.
Benefits of a Home Warranty
Peace of Mind: A significant benefit is the peace of mind it brings. Knowing that you are covered for unexpected repairs can significantly reduce stress, especially for first-time homeowners.
Budget Protection: Home warranties protect your budget from unexpected, costly repairs. Instead of a hefty repair bill, you’ll typically pay a more manageable service fee.
Convenience: If something breaks, you won’t have to search for a service provider or compare quotes. The warranty company usually handles these logistics.
Drawbacks of a Home Warranty
Coverage Limitations: Not everything is covered under a home warranty. Be sure to read the fine print to understand what's included and what's not.
Service Fees and Additional Costs: While they protect against large repair bills, most warranties require a service fee for each repair visit. Additionally, there may be limits on how much the warranty will pay out over a certain period.
Quality of Repairs: Some homeowners find that the quality of repair work can vary, depending on the contractors used by the warranty company.
Do You Need a Home Warranty?
Deciding whether you need a home warranty depends on several factors:
Age of Home: Older homes, with older appliances and systems, might benefit more from a warranty.
Financial Readiness: If unexpected large expenses would be a financial strain, a warranty can offer protection.
Risk Tolerance: If you prefer more predictability in your home maintenance costs, a warranty could be a good fit.
In summary, a home warranty, or a Residential Service Contract in Texas, can be a valuable tool for homeowners looking to manage unexpected repair costs and enjoy peace of mind. However, it's crucial to weigh the benefits against the drawbacks and consider your specific situation before deciding. Remember, the best decision is an informed one, so research and read the contract details thoroughly before committing.2023-12-11T11:47:34-07:002023-12-11T11:52:14-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:21585Discovering Your Ideal Neighborhood in Austin, TXAustin, Texas, a vibrant city known for its live music, eclectic culture, and booming tech scene, is a top destination for many looking to relocate. But with so many unique neighborhoods, how do you find the one that's perfect for you? This blog post will guide you through the key factors to consider and provide insider tips to help you discover your ideal spot in Austin.
1. Define Your Lifestyle Needs:
Urban or Suburban? Decide if you prefer the hustle and bustle of downtown living or a quieter, suburban lifestyle.
Commute Considerations: With Austin's growing traffic concerns, factor in your commute to work. Areas like North Austin are ideal for tech professionals, while South Austin offers a more laid-back vibe.
2. Budgeting for Austin Living:
Cost of Living: Research the cost of living in different neighborhoods. Downtown and South Congress are pricier, while areas like East Austin are more affordable but rapidly changing.
Housing Options: Consider whether you want to rent or buy. Austin offers a mix of modern apartments, historic homes, and new developments.
3. Explore the Neighborhoods:
Downtown: Perfect for those who love being in the heart of the city. It's close to major tech companies, restaurants, and nightlife.
East Austin: Known for its artistic flair and vibrant community, it's ideal for creatives and young professionals.
West Austin: Offers more upscale living with beautiful hill country views, suitable for families and those seeking a quieter environment.
South Austin: Famous for its “Keep Austin Weird” ethos, it's great for those looking for a diverse, lively community.
4. Consider the Social Scene:
Live Music and Entertainment: Austin is the “Live Music Capital of the World”. Neighborhoods like Red River and the Warehouse District are hotspots for music lovers.
Outdoor Activities: For outdoor enthusiasts, look for neighborhoods near Zilker Park or Lady Bird Lake for easy access to trails and green spaces.
Food and Culture: Each neighborhood has its unique culinary scene. South Lamar and Rainey Street are known for their food trucks and hip bars.
5. Research and Visit:
Online Resources: Utilize websites and forums like Reddit’s r/Austin or City-Data to get insights from locals.
Visit and Explore: Nothing beats experiencing the neighborhoods firsthand. Spend time in different areas to get a feel for the local vibe.
6. Education and Family Considerations:
School Districts: If you have children, research school districts. Eanes ISD and Lake Travis ISD have schools with strong reputations.
Family-Friendly Activities: Look for neighborhoods with parks, community centers, and family-oriented events.
Finding the right place to live in Austin requires a blend of research and personal exploration. Consider your lifestyle, budget, and what you want out of your community. Austin's diverse neighborhoods each offer a unique living experience, so there's truly something for everyone in this dynamic city.2023-11-27T05:12:38-07:002023-11-27T05:18:20-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:21437Navigating the Austin Real Estate Market: A Guide for NewcomersWelcome to Austin, the vibrant heart of Texas! If you're new to the city and looking to buy a home, you've embarked on an exciting journey. Austin, known for its eclectic culture, booming tech industry, and stunning natural beauty, offers a unique living experience. This blog post aims to provide valuable insights and tips for newcomers navigating the Austin real estate market. Whether you're seeking a cozy bungalow, a modern condo, or a spacious family home, our guide will help you make informed decisions and find your dream home in Austin.
Understanding the Austin Real Estate Market
Growth and Trends: Explore the current trends and growth patterns in Austin's real estate market. Understand how the influx of new residents and the expanding tech industry are shaping housing demands.
Neighborhood Diversity: Discover the diverse neighborhoods of Austin, each offering its own charm and lifestyle. From the historic streets of East Austin to the scenic views of Lake Travis, find the area that best suits your preferences.
Setting Your Home Buying Budget
Financial Planning: Learn how to set a realistic budget for buying a home in Austin. Consider factors like your income, savings, and the additional costs associated with home buying.
Mortgage and Financing: Get insights into mortgage options and financing solutions. Understand the importance of a good credit score and how to secure the best mortgage rates.
Finding the Right Real Estate Agent
Importance of Professional Help: Understand why working with a knowledgeable real estate agent is crucial in Austin's competitive market.
Choosing an Agent: Tips on finding an agent who understands your needs and has a deep knowledge of Austin's neighborhoods and market trends.
House Hunting in Austin
Property Types and Features: Explore the various types of properties available in Austin, from single-family homes to high-rise condos. Understand the features that are popular in Austin homes, such as energy-efficient designs and outdoor living spaces.
Inspection and Appraisal: Learn about the importance of thorough home inspections and appraisals in the buying process.
Navigating the Buying Process
Making an Offer: Guidance on making a competitive offer in Austin's fast-paced market.
Closing the Deal: Understand the steps involved in closing a home purchase, from signing contracts to handling legal and financial formalities.
Settling into Your New Austin Home
Community Engagement: Discover ways to get involved in your new community, from local events to neighborhood associations.
Enjoying Austin's Lifestyle: Embrace the vibrant culture, outdoor activities, and culinary scene that make Austin a unique place to live.
Buying a home in Austin as a newcomer can be both challenging and rewarding. With the right preparation and guidance, you can navigate the real estate market confidently and find a home that fits your lifestyle and budget. Welcome to your new adventure in Austin, where every corner offers something exciting to explore!
Remember to consult with a real estate professional for personalized advice and to stay updated with the latest market trends. Happy house hunting in Austin!2023-11-20T08:10:51-07:002023-11-20T08:23:02-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:21312Why Fall is the Ideal Season to Purchase Your Dream Home in Austin, TXWelcome to the heart of Texas! As a seasoned realtor in Austin, I've witnessed the ebb and flow of our dynamic real estate market. Today, I'm excited to share why fall is an unexpectedly perfect time to purchase a home in this vibrant city.
1. Less Competition, More Opportunities: Unlike the bustling spring market, fall in Austin sees a slowdown in buyer activity. This decrease in competition means you have a better chance of finding your dream home without the pressure of multiple offers.
2. Motivated Sellers: Many sellers list their homes in the spring, but those still on the market by fall are often more motivated to negotiate. This can lead to more favorable terms and prices for buyers, making it a great time to secure a deal.
3. End-of-Year Tax Breaks: Buying a home in fall can have financial perks, especially when it comes to taxes. Homeowners can deduct mortgage interest, property taxes, and some of the costs involved in buying a home on their tax returns. A fall purchase ensures these benefits apply for the current tax year.
4. Ideal Weather for Moving: Austin's fall weather is more temperate, making it a comfortable time for moving and settling into a new home. Plus, the natural beauty of Austin's autumn creates a picturesque backdrop for this exciting new chapter.
5. More Attention from Realtors and Lenders: With the market less hectic, realtors and lenders can offer more personalized attention. This means smoother transactions and a better home-buying experience for you.
Fall in Austin isn't just about enjoying cooler weather and stunning foliage; it's a hidden gem for homebuying. If you're considering purchasing a home in Austin, let's take advantage of this season's unique opportunities. Contact me today, and let's find your perfect Austin home this fall!2023-11-13T12:57:13-07:002023-11-13T13:01:13-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:21051Saving for Your First HousehackSaving for your first house hack is an exciting journey that requires strategic planning and financial discipline. House hacking — the practice of buying a property, living in one part and renting out the rest — can be an excellent way to reduce or even eliminate your personal living expenses while building equity in a property. Here's a step-by-step guide to saving for your first house hack:
1. Assess Your Financial Health: Before diving into saving, take stock of your financial situation. Check your credit score, as it will significantly impact the mortgage terms you can secure. Pay down high-interest debts and ensure you have a healthy credit history.
2. Understand House Hacking Costs: House hacking comes with unique costs. You’ll need to cover a down payment, closing costs, potential renovation expenses, and reserve funds for maintenance and vacancies. Research the market you’re looking to buy in to estimate these costs accurately.
3. Set a Target Savings Goal: Once you understand the costs, set a clear savings goal. This should include the total amount needed for the down payment and all associated costs. Having a concrete number will help you plan and stay motivated.
4. Create a Budget: Budgeting is essential. Track your income and expenses to see where you can cut back. Use budgeting apps or spreadsheets to manage your finances. Allocate a specific amount or percentage of your income each month to save for your house hack.
5. Increase Your Income: If possible, look for ways to increase your income to reach your goal faster. Consider side gigs, freelance work, or asking for a raise at your current job.
6. Automate Your Savings: Set up automatic transfers to a dedicated savings account for your house hack. This makes the process effortless and helps avoid the temptation to spend the money elsewhere.
7. Reduce Living Expenses: Find ways to reduce your current living expenses. This might mean downsizing, getting roommates, or cutting back on non-essential spending.
8. Explore Down Payment Assistance: Research down payment assistance programs in your area. Many states and local governments offer programs for first-time homebuyers that can help with your down payment and closing costs.
9. Stay Informed and Flexible: Keep educating yourself about real estate investing and the market conditions in your desired area. Be ready to adapt your plan as needed. The more informed you are, the better decisions you’ll make.
10. Network with Other House Hackers: Join real estate investing groups, online communities like <a href="https://www.biggerpockets.com/dashboard">Biggerpockets</a>, or <a href="https://www.meetup.com/meetup-group-yvkzijtj/events/295929511/?utm_medium=referral&utm_campaign=share-btn_savedevents_share_modal&utm_source=link">local meetups</a> to learn from others who have successfully house hacked. They can offer invaluable advice and support.
11. Consult with Professionals: Speak with a financial advisor, a <a href="https://www.themoorheadteam.com/about/">real estate agent experienced in house hacking</a>, and a mortgage broker. They can provide guidance tailored to your financial situation and goals.
12. Stay Patient and Persistent: Saving for a house hack is a marathon, not a sprint. Stay patient and persistent. Celebrate small milestones to keep yourself motivated throughout the process.
House hacking can be a fantastic way to kickstart your journey into real estate investing. By carefully planning and saving, you can make your first house hack a reality and potentially set the stage for a future in real estate investment.2023-11-06T13:33:06-07:002023-11-06T13:46:58-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:20941 Navigating Home Buying in a High Rate Environment: Leveraging Seller Paid Buydowns & Closing CostsIn today's real estate market, high interest rates can be a significant deterrent for potential homebuyers. However, savvy buyers know that there are strategies to mitigate these challenges and secure a favorable deal. One such approach is leveraging seller paid buydowns and closing costs. Let's explore how you can use these tools to your advantage when buying a home in a high rate environment.
Understanding the Landscape
Before diving into strategies, it's crucial to understand the current financial landscape. High interest rates mean that borrowing money becomes more expensive. Over the lifespan of a mortgage, even a small increase in the interest rate can result in paying tens of thousands of dollars more.
The Power of Seller Paid Buydowns
A buydown is essentially an upfront payment that reduces the interest rate on a mortgage for the initial years of the loan. In a seller paid buydown, the seller agrees to pay this fee, helping the buyer secure a lower interest rate temporarily.
Benefits for the Buyer:
Immediate Relief: A buydown can significantly reduce monthly mortgage payments in the initial years, providing financial relief to the buyer.
Flexibility: The lower initial payments give buyers the flexibility to adjust their finances, save more, or allocate funds to other essential expenses.
Using Closing Costs to Your Advantage
Closing costs, the fees associated with finalizing a real estate transaction, can be quite substantial, often amounting to 2-3% of the loan amount. In a high rate environment, buyers can negotiate for the seller to pay a portion or all of these costs.
Benefits for the Buyer:
Reduced Out-of-Pocket Expenses: Having the seller cover closing costs means fewer expenses for the buyer at the time of purchase.
More Negotiation Power: In markets where there's ample inventory and sellers are eager to close deals, buyers can use the high rate environment as a negotiation tool to get sellers to cover these costs.
Tips for Navigating Negotiations:
Know the Market: Understand the current market conditions. If it's a buyer's market with many properties available, you have more negotiation power.
Work with a Skilled Realtor: A knowledgeable realtor can guide you on how and when to request buydowns or ask sellers to cover closing costs.
Crunch the Numbers: Before agreeing to any deal, ensure that the math works in your favor. Sometimes, a lower purchase price might be more beneficial than having the seller cover closing costs or buydowns.
Be Prepared to Compromise: While it's ideal to have the seller cover all additional costs, be prepared to meet in the middle. A partial buydown or sharing closing costs can still provide significant savings.
In Conclusion
While a high rate environment might seem daunting, strategic buyers can still find ways to navigate the market efficiently. By understanding and leveraging tools like seller paid buydowns and closing costs, you can secure a favorable deal and make your dream of homeownership a reality. Always remember, every challenge presents an opportunity – it's all about perspective and strategy!2023-10-30T07:02:53-07:002023-10-30T07:09:27-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:20791Pros and Cons of Cash OffersA cash offer on a house can have several advantages and disadvantages for both the buyer and the seller. Here are some of the key pros and cons:
Pros of a Cash Offer for the Buyer:
Competitive Advantage: Cash offers are often more attractive to sellers because they eliminate the risk of financing falling through, making your offer more competitive in a competitive real estate market.
Faster Closing: Without the need for mortgage approval and processing, cash transactions typically close faster. This can be advantageous if you want to move into the property quickly.
Negotiating Power: Sellers may be more willing to negotiate on price when they know they'll receive the full amount in cash, potentially allowing you to secure a better deal.
Savings on Interest: You won't have to pay interest on a mortgage, saving you money in the long run.
No Appraisal Contingency: Cash buyers can often waive the appraisal contingency, as they don't require an appraisal for financing purposes, which can simplify the transaction.
Cons of a Cash Offer for the Buyer:
Tied-Up Capital: Paying with cash ties up a significant amount of your capital in the property, which could be used for other investments.
Reduced Liquidity: Using cash for a home purchase can reduce your liquid assets, potentially leaving you with less money for emergencies or other investments.
Missed Investment Opportunities: By tying up your cash in a property, you may miss out on other investment opportunities that could offer higher returns.
Opportunity Cost: The cash used for the purchase could have been invested elsewhere to potentially earn a higher return than the interest saved on a mortgage.
Pros of a Cash Offer for the Seller:
Certainty: Cash offers are less likely to fall through due to financing issues, providing the seller with more certainty of the sale.
Faster Closing: Cash transactions typically close more quickly, allowing the seller to access their proceeds sooner.
Attractive Terms: Sellers may be more willing to accept a slightly lower offer when it's an all-cash deal due to the simplicity and security it offers.
No Appraisal Hassles: Cash offers often eliminate the need for a potentially complicating appraisal process.
Cons of a Cash Offer for the Seller:
Lower Sale Price: In some cases, cash buyers may negotiate a lower sale price because of the perceived convenience of a cash deal for the seller.
Fewer Potential Buyers: Cash offers limit the pool of potential buyers, which could result in a longer time on the market or a more challenging selling process.
Missed Financing Contingencies: Sellers may miss out on potential financing contingencies and due diligence that could uncover issues with the property.
Ultimately, whether a cash offer is beneficial depends on your specific circumstances and goals. Both buyers and sellers should carefully consider their financial situation and priorities before deciding on a cash transaction or traditional financing. It's essential to consult with a real estate professional and potentially a financial advisor to make an informed decision.2023-10-23T07:09:49-07:002023-10-23T07:12:17-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:20317Austin STR Regulations are Over!In a significant development for the hospitality industry in Austin, Texas, short-term rental (STR) regulations have recently come to an end. These regulations have been a subject of debate and controversy for years, with proponents arguing for stricter rules to protect neighborhoods, while property owners and STR platforms advocated for more relaxed restrictions to support the local economy. In this blog post, we will explore the implications of Austin's decision to end its STR regulations and what it means for property owners and travelers.
The Background
Austin, like many other cities across the United States, implemented STR regulations in response to concerns over the impact of short-term rentals on neighborhoods, housing affordability, and the hotel industry. These regulations typically included restrictions on the number of days a property could be rented, licensing requirements, and zoning regulations.
Over the years, these regulations evolved, often in response to changing dynamics within the city. Property owners who relied on STR platforms like Airbnb and Vrbo for additional income faced increasing scrutiny and compliance challenges.
The End of STR Regulations
In a surprising turn of events, Austin has chosen to end its STR regulations. The decision was not one of their own but the result of losing a lawsuit against the State of Texas. You can bet they will work on new rehulations so take advantage while you can!
Legal Challenges: STR regulations in Austin faced numerous legal challenges from property owners and platforms, arguing that these regulations infringed upon their property rights and hindered their ability to earn income from their homes.
The end of STR regulations in Austin offers property owners several advantages:
Increased Flexibility: Property owners can now rent their homes on a short-term basis without the restrictions imposed by previous regulations. This allows for more flexibility in managing their properties.
Economic Opportunities: Property owners have the opportunity to earn additional income by listing their properties on STR platforms, potentially helping them recover from financial setbacks experienced during the pandemic.
Property Rights: The end of regulations aligns with property owners' rights to use their properties as they see fit, provided they adhere to existing zoning and safety codes.
Implications for Travelers
For travelers, the end of STR regulations also brings about several benefits:
More Choices: With fewer restrictions on short-term rentals, travelers have a wider range of accommodation options when visiting Austin. This can lead to more unique and personalized experiences.
Competitive Pricing: Increased competition among property owners may lead to more competitive pricing for short-term rentals, potentially resulting in cost savings for travelers.
Local Experiences: Staying in a short-term rental often provides travelers with the opportunity to immerse themselves in local neighborhoods and communities, fostering a deeper connection to the city.
The end of short-term rental regulations in Austin marks a significant shift in the city's approach to the sharing economy and tourism. While it offers newfound freedom for property owners and more options for travelers, it also raises questions about how Austin will manage potential issues like noise, safety, and neighborhood disruption. As the city continues to adapt to this changing landscape, property owners and travelers alike will be watching closely to see how Austin's hospitality industry evolves in the absence of STR regulations.
Reach out to us for more info on how you can get a short term rental going in Austin!2023-09-25T06:58:00-07:002023-09-25T07:01:44-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:19539Is 2023 a Buyer's Market?Austin, Texas, known for its thriving culture and economic dynamism, is now presenting a unique window of opportunity for real estate investors. The current market trend, marked by fewer buyers and increased sellers, has created a promising landscape for those looking to invest in Austin real estate. In this blog post, we'll explore why this situation makes 2023 an excellent time to consider real estate investment in Austin.
1. Amplified Negotiation Power
With fewer buyers in the market, investors are finding themselves in a stronger position to negotiate favorable deals. Motivated sellers are more open to accommodating buyer preferences, potentially leading to competitive pricing and added property incentives.
2. Diverse Property Selection
The influx of available properties caters to a range of investment strategies. Whether you're seeking a trendy downtown condo, a charming suburban home, or a historic residence, the expanded inventory offers choices that align with various investment goals.
3. Anticipating Appreciation
Investing during this market phase offers the potential for long-term value appreciation. As the market stabilizes and demand returns, well-chosen properties could experience substantial growth in value, allowing investors to capitalize on Austin's continued development.
4. Strategic Long-Term Vision
Austin's resilient economy and cultural allure ensure sustained growth. Investors who act now can position themselves to benefit from the city's ongoing expansion and solidify their investment portfolios for the future.
In 2023, Austin's real estate market is uniquely poised for investment success, with fewer buyers and increased sellers opening doors for negotiation, property variety, and potential appreciation. Savvy investors who recognize and embrace this market trend can secure properties aligned with their goals, capitalizing on Austin's thriving economy and promising future. As the city's rhythm continues to play on, those who invest now could find themselves reaping the rewards for years to come.2023-08-07T11:41:02-07:002023-08-07T11:44:54-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:19404Househacking with an ADUHouse Hacking with an ADU in Austin: Maximizing Real Estate Potential in the Live Music Capital
As the capital of Texas and a vibrant hub of culture and innovation, Austin has become a sought-after destination for both residents and real estate investors. The city's robust job market, thriving music scene, and unique blend of urban amenities and natural beauty make it an attractive location for those seeking to house hack with an Accessory Dwelling Unit (ADU). Let's explore how house hacking with an ADU in Austin can maximize your real estate potential and contribute to your path of financial freedom.
The Appeal of Austin for House Hacking:
Strong Rental Market: Austin's growing population and a steady influx of new residents have created a strong demand for rental properties. House hacking with an ADU allows you to tap into this rental market and attract potential tenants looking for affordable and well-located living spaces.
ADU-Friendly Regulations: Austin is known for its relatively ADU-friendly regulations, making it easier for homeowners to add accessory dwelling units to their properties. While it's essential to understand local zoning laws and permitting requirements, the city's pro-ADU stance offers opportunities for property owners to maximize their real estate investments.
Sustainable Growth: Austin's economy is diverse, with a focus on technology, healthcare, and creative industries. This sustainable growth has contributed to a stable real estate market, making it an attractive place for long-term investment.
Lifestyle and Culture: As the "Live Music Capital of the World," Austin boasts a unique and vibrant culture. The city's lively entertainment, outdoor activities, and thriving food scene make it a desirable place to live, attracting potential renters to your ADU.
Choosing the Right Location:
In Austin, the location of your property can significantly impact the success of your house hacking venture. Consider the following factors when choosing a location for your ADU:
Proximity to Amenities: Look for neighborhoods with easy access to amenities such as shopping centers, restaurants, public transportation, and major employers. This will make your property more appealing to potential tenants.
Rental Demand: Research the rental demand in different neighborhoods of Austin. Areas near universities, tech hubs, or downtown are likely to have high demand for rental properties.
Zoning Regulations: Ensure that the property you choose is in a zoning district that allows for ADUs. Each zoning district may have specific regulations regarding the size and design of ADUs, so understanding the rules is crucial. SF3 Zoning in Austin makes adding an ADU a lot easier.
Navigating Austin's ADU Regulations:
Before proceeding with your ADU project in Austin, familiarize yourself with the city's ADU regulations. Key points to consider include:
Owner-Occupancy Requirements: In Austin, you may be required to occupy either the primary residence or the ADU as the property owner. This means you'll have to live in one of the units while renting out the other.
Permitting Process: Obtain all the necessary permits from the city before starting construction on your ADU. Working with a knowledgeable contractor or architect familiar with ADU regulations can help streamline this process.
Parking Requirements: Some neighborhoods in Austin have specific parking requirements for ADUs, so ensure you have enough parking spaces to comply with the regulations.
Embracing Sustainability:
Austin is known for its eco-consciousness and commitment to sustainability. Consider incorporating eco-friendly features into your ADU, such as energy-efficient appliances, solar panels, and water-saving fixtures. Not only will this attract environmentally-conscious tenants, but it may also lead to cost savings in the long run.
Connecting with the Right Professionals:
Investing in an ADU requires collaboration with various professionals, including architects, contractors, real estate agents, and property managers. Engage professionals who have experience with ADUs and are familiar with Austin's real estate market to ensure a smooth and successful house hacking experience.
Conclusion:
House hacking with an ADU in Austin can be a rewarding and financially savvy real estate investment. By taking advantage of the city's strong rental market, ADU-friendly regulations, and unique cultural appeal, you can build a path towards financial freedom while enjoying the vibrant lifestyle that Austin has to offer. Remember to conduct thorough research, understand local regulations, and work with experienced professionals to make the most of your house hacking journey in the Live Music Capital of the World.2023-07-31T14:12:26-07:002023-07-31T14:31:57-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:19010Househacking is for Anyone!Austin, Texas, is a vibrant and fast-growing city known for its booming tech scene, live music culture, and entrepreneurial spirit. As the city continues to attract young professionals and families alike, the demand for affordable housing has skyrocketed. Fortunately, house hacking has emerged as a game-changing strategy for residents of Austin, allowing them to overcome financial barriers and secure their future. In this blog post, we will delve into how house hacking in Austin can be the key to unlocking financial freedom for anyone.
1. The Austin Real Estate Market:
The Austin real estate market has experienced rapid growth in recent years, making it an ideal time to consider house hacking. With a robust economy, a steady influx of new residents, and limited housing inventory, rental demand remains high. By leveraging this demand through house hacking, you can tap into a lucrative market and create a sustainable income stream.
2. Overcoming High Housing Costs:
One of the biggest challenges in Austin is the rising cost of housing. As property values continue to climb, it can be daunting for many individuals to enter the market as homeowners. However, house hacking provides an innovative solution to this problem. By purchasing a property and renting out the extra apce, you can significantly reduce your housing costs or potentially even live for free. This allows you to overcome the financial barrier and enjoy the benefits of homeownership in a city that is becoming increasingly expensive.
3. Capitalizing on Rental Demand:
Austin's thriving job market, diverse population, and vibrant culture make it an attractive destination for renters. By strategically house hacking in popular neighborhoods or areas near universities or major employers, you can capitalize on the high rental demand. The rental income generated from the extra space in your property can be used to cover the mortgage, expenses, and potentially even generate additional cash flow. This not only helps you build equity but also creates a pathway to financial independence.
4. Networking and Community:
House hacking in Austin offers a unique opportunity to build a network and become part of a supportive community. Engaging with other house hackers, real estate investors, and local professionals can provide valuable insights, resources, and mentorship. Austin's entrepreneurial spirit fosters an environment where collaboration and knowledge-sharing thrive. By tapping into this community, you can gain insights into investment strategies, property management, and navigating the local real estate market.
5. Long-Term Wealth Building:
House hacking in Austin is not just about immediate cost savings or rental income; it is also a long-term wealth-building strategy. The city's strong real estate market has historically shown appreciation, allowing homeowners to build equity over time. As you pay down the mortgage and the property value appreciates, you can leverage the equity to fund future investments or upgrade to a larger property, further expanding your real estate portfolio and increasing your wealth.
House hacking in Austin presents an incredible opportunity for individuals seeking financial freedom in a city known for its growth and vibrant lifestyle. By utilizing this innovative strategy, you can overcome high housing costs, tap into the strong rental demand, and build long-term wealth through real estate. Whether you're a young professional, a family, or an aspiring investor, house hacking in Austin offers the flexibility, income potential, and community support necessary to achieve your financial goals. So, embrace the spirit of Austin and embark on your journey to financial independence through house hacking.2023-07-03T07:26:40-07:002023-07-03T07:38:45-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:18925Househacking in North AustinHousehacking has become an increasingly popular strategy among real estate enthusiasts looking to maximize their investment potential. By combining homeownership with rental income, individuals can reduce their housing costs or even generate a profit. If you're considering househacking in North Austin, you're in luck! This vibrant region of Texas offers a range of excellent neighborhoods that are ideal for this investment strategy. In this article, we will explore some of the best areas to househack in North Austin
Round Rock:
Located just north of Austin, Round Rock is a thriving city with a strong sense of community and a growing job market. The area boasts a variety of housing options, from single-family homes to townhouses and apartments, making it an excellent choice for househacking. Additionally, Round Rock is home to major employers like Dell and the headquarters of several technology companies. With its proximity to highways and excellent school districts, Round Rock offers a great balance of affordability and convenience.
Cedar Park:
Cedar Park is another attractive option for househackers in North Austin. This suburb is known for its family-friendly environment, excellent schools, and abundant recreational amenities. With its proximity to major employers like Apple and its affordable housing options, Cedar Park presents a compelling opportunity for those looking to invest in the real estate market. Additionally, the city is well-connected to Austin via major highways, allowing for an easy commute.
Pflugerville:
Pflugerville, located northeast of Austin, has experienced rapid growth in recent years. It offers a range of housing options, including single-family homes, townhouses, and condominiums, making it suitable for different househacking strategies. The city provides residents with numerous parks, trails, and recreational facilities, adding to its appeal. Pflugerville's affordability and proximity to downtown Austin combined with its strong sense of community, make it an attractive choice for investors seeking househacking opportunities.
Georgetown:
If you're looking for a charming and historic locale for your househacking endeavors, Georgetown should be on your radar. Situated north of Austin, Georgetown offers a blend of old-world charm and modern amenities. The city's downtown area is filled with quaint shops, restaurants, and a vibrant arts scene. Georgetown's affordability, coupled with its proximity to major highways and Austin's job market, makes it an excellent option for househackers looking for long-term investment potential. Don't forget it's been the fastest growing city in the US here recently too!
Leander:
Leander, located northwest of Austin, is a rapidly growing city with ample opportunities for househacking. The area boasts an array of new housing developments, providing investors with a range of choices. Leander offers a peaceful suburban lifestyle and a strong sense of community, along with a variety of parks and outdoor recreational activities. With its affordable housing market and proximity to major employers, Leander is an attractive option for househackers looking to tap into North Austin's real estate market.
Househacking in North Austin can be an excellent investment strategy, allowing you to leverage rental income to offset your housing costs or generate additional income. The areas mentioned above—Round Rock, Cedar Park, Pflugerville, Georgetown, and Leander—offer a mix of affordability, amenities, strong job markets, and community spirit, making them ideal for househacking. When exploring opportunities, consider factors such as proximity to major employers, school districts, transportation links, and recreational amenities to ensure a successful and rewarding househacking experience. As always, thorough research and consultation with local real estate professionals will help you make informed decisions and maximize your investment potential in North Austin.2023-06-26T06:00:49-07:002023-06-26T06:04:20-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:18383Finding Your Perfect Home in Austin: A Guide to Choosing the Best Place to LiveMoving to a new city can be both exciting and daunting. With its vibrant culture, thriving job market, and breathtaking natural beauty, Austin, Texas, has become a popular destination for many. However, with numerous neighborhoods and communities to choose from, finding the best place to live in Austin that suits your lifestyle and preferences can be a challenging task. In this blog post, we will provide you with a comprehensive guide on how to find your ideal home in the "Live Music Capital of the World."
1. Define Your Priorities:
Before beginning your search, it's crucial to identify your priorities and what matters most to you. Consider factors such as commute time, proximity to amenities, school districts (if applicable), safety, cost of living, and the overall vibe of the neighborhood. Determine your must-haves and nice-to-haves to narrow down your search.
2. Research Austin's Neighborhoods:
Austin is known for its diverse neighborhoods, each with its own distinct personality and features. Spend time researching and exploring the different areas of the city. Consider the following popular neighborhoods:
a. Downtown: Perfect for city lovers who enjoy a vibrant nightlife, proximity to entertainment venues, and a fast-paced lifestyle.
b. South Congress (SoCo): A trendy and eclectic neighborhood known for its vintage shops, music venues, and lively atmosphere.
c. Zilker: Nestled near downtown, this neighborhood offers access to the iconic Barton Springs Pool, Zilker Park, and a laid-back lifestyle.
d. East Austin: Known for its vibrant arts scene, cultural diversity, and delicious food, this neighborhood offers a unique blend of history and creativity.
e. The Domain: Ideal for those seeking a suburban feel with upscale shopping, dining, and entertainment options.
3. Visit Potential Neighborhoods:
Nothing beats experiencing a neighborhood firsthand. Once you've shortlisted a few neighborhoods, visit them in person. Wander through the streets, explore local shops, dine at restaurants, and engage with the community. Pay attention to the general atmosphere, cleanliness, and overall vibe of the area. Visiting during different times of the day and week can give you a more accurate picture of what it's like to live there.
4. Seek Local Insights:
Engage with locals to gain valuable insights into the neighborhoods you're considering. Use online forums, social media groups, or even strike up conversations with people you meet during your visits. Their experiences and perspectives can provide you with a deeper understanding of what it's like to live in a specific area.
5. Consider Your Lifestyle:
Different neighborhoods cater to various lifestyles. Evaluate how well a neighborhood aligns with your interests and daily routine. If you enjoy outdoor activities, look for neighborhoods near parks and green spaces. If you prefer a quiet residential area, explore suburban communities. Determine whether the local amenities, such as gyms, grocery stores, or schools, meet your needs.
6. Budget and Cost of Living:
Consider your budget and the cost of living in different neighborhoods. Some areas may be more expensive than others, and it's essential to find a balance between affordability and your desired quality of life. Research average rent or home prices, property taxes, utility costs, and other expenses associated with living in each neighborhood.
7. Seek Professional Assistance:
If you're struggling to navigate the Austin housing market or need expert advice, consider working with a local real estate agent. They have in-depth knowledge of the city's neighborhoods and can guide you based on your preferences and budget. Real estate professionals can help you find properties that meet your criteria and negotiate deals on your behalf.
Finding the best place to live in Austin requires careful consideration of your priorities, thorough research, and exploring all of the amazing areas!2023-05-22T06:14:38-07:002023-05-22T06:20:14-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:18051Cash OffersCash Offers vs Financing Offers in Real Estate Transactions
When it comes to buying a property, one of the most important decisions you will make is whether to make a cash offer or a financing offer. Both options have their pros and cons, and ultimately the choice will depend on your personal circumstances and the current real estate market conditions. In this article, we will explore the advantages and disadvantages of cash offers and financing offers and provide some tips for competing with cash offers if you decide to pursue financing.
Cash Offers
A cash offer is when a buyer offers to purchase a property outright, without the need for financing. Here are some of the advantages and disadvantages of cash offers:
Advantages:
Certainty and speed: Cash offers provide a high level of certainty to the seller that the deal will close quickly and smoothly. With a cash offer, there is no need to wait for mortgage approval, which can take several weeks or even months. This can be particularly appealing in a competitive market where multiple offers are being considered.
No financing contingencies: When a buyer makes a cash offer, there are no financing contingencies to worry about. Financing contingencies are clauses in the contract that allow the buyer to back out of the deal if they are unable to secure financing. Without financing contingencies, the seller can be more confident that the deal will close.
More negotiating power: Cash buyers may have more negotiating power when it comes to the purchase price of the property. Because they are not relying on financing, they may be able to close the deal more quickly, which can be attractive to sellers.
Lower closing costs: When a buyer obtains a mortgage to purchase a property, there are typically closing costs associated with the loan, such as appraisal fees, loan origination fees, and title insurance. With a cash offer, these costs are eliminated, which can save the buyer thousands of dollars and also ensure the seller they won't be asked to pay for them.
Disadvantages:
Opportunity cost: Paying cash for a property means tying up a large amount of capital that could be invested elsewhere. For some buyers, the potential returns from investing the cash elsewhere may be more attractive than owning a property outright.
Reduced liquidity: Buying a property with cash can reduce your liquidity, making it harder to access your cash in case of an emergency. This can be particularly challenging for buyers who are self-employed or who have irregular income streams.
Financing Offers
A financing offer is when a buyer offers to purchase a property with the help of a mortgage or other type of financing. Here are some of the advantages and disadvantages of financing offers:
Advantages:
Flexibility: Financing offers allow buyers to purchase a property without tying up a large amount of capital, which can be beneficial for buyers who want to preserve their liquidity or who have other investment opportunities.
Potential for higher returns: By using financing to purchase a property, buyers can potentially earn a higher return on their investment than if they had paid cash. This is because the property can appreciate in value over time, while the buyer's initial investment is lower.
Tax benefits: Buyers who finance a property can deduct their mortgage interest payments on their taxes, which can reduce their tax liability and increase their cash flow.
Disadvantages:
Financing contingencies: Financing offers come with financing contingencies, which can allow buyers to back out of the deal if they are unable to secure financing. This can make financing offers less attractive to sellers, who want a high level of certainty that the deal will close.
Higher closing costs: Financing offers come with higher closing costs, such as appraisal fees, loan origination fees, and title insurance. These costs
It's important to note that there is no one-size-fits-all answer when it comes to choosing between cash offers and financing offers. Both options have their advantages and disadvantages, and the best choice will depend on your personal circumstances and financial goals. For some buyers, paying cash for a property may be the best option, particularly if they have a large amount of cash on hand and want to avoid the hassle of securing financing. For others, financing a property may be the better choice, particularly if they want to preserve their liquidity or have other investment opportunities. Ultimately, the decision to make a cash offer or a financing offer should be based on your individual circumstances and financial goals.2023-05-01T06:20:43-07:002023-05-01T06:35:21-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17969What is an ADU?ADU stands for Accessory Dwelling Unit, which is a secondary housing unit that is located on the same property as a primary residence. ADUs are typically smaller than the main house and can take the form of a converted garage, a basement apartment, or a separate cottage. ADUs are becoming increasingly popular as a way to create more housing options in areas where housing is in high demand. They can provide additional income for homeowners by being rented out or used as a guest house, while also offering affordable housing options for renters.
Accessory Dwelling Units (ADUs) are allowed in Austin, subject to certain regulations and requirements. In Austin, ADUs are also known as "Secondary Units" and can be either attached or detached from the primary residence.
To build an ADU in Austin, you will need to follow the city's rules and regulations, which include requirements for lot size, setback, height, and parking, among others. Additionally, you will need to obtain the necessary permits and approvals from the city's Development Services Department. SF3 zoning is required in most areas to build an ADU that can be inhabited and rented for anything more than extra living space for the primary homeowner. <a href="https://www.austintexas.gov/page/accessory-dwelling-units">Click this link</a> to the cities website about ADU's and more specific requirements.
It's worth noting that the regulations surrounding ADUs can be complex, and they can vary by location, so it's important to research the specific requirements and restrictions for your property in Austin before starting any construction.2023-04-24T06:38:00-07:002023-04-24T06:42:24-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17889single family househacksHousehacking is a popular strategy among real estate investors in Austin, TX. The city's booming real estate market and vibrant rental market make it an ideal location for those looking to generate additional income through real estate investing. In this blog, we will explore how to househack a single-family home in Austin, TX.
Why Househack a Single-Family Home in Austin, TX?
Austin, TX is one of the fastest-growing cities in the United States, with a rapidly expanding population and a thriving economy. The city's strong job market and diverse cultural offerings make it an attractive location for young professionals, families, and retirees alike. This makes it an ideal location for househackers, as there is high demand for rental properties in the area.
Steps to Househack a Single-Family Home in Austin, TX
Choose the Right Property
When househacking a single-family home in Austin, TX, it's important to choose the right property. Look for a home in a desirable neighborhood that has a layout that will allow you to live in one part of the house and rent out the other. Consider the location of the property, as well as the potential rental income that it could generate.
Crunch the Numbers
Before you make an offer on a property in Austin, TX, you need to know if it will be a profitable investment. Crunch the numbers and determine the potential rental income that you could generate from the property. You will also need to factor in the cost of any renovations or upgrades that you need to make, as well as your own living expenses.
Make the Necessary Upgrades
Once you have purchased the property, you will need to make any necessary upgrades to the rental portion of the house. In Austin, TX, it's important to make sure that the rental space is up to code and that it meets any local zoning requirements. This may include adding a separate entrance, installing a kitchenette, or adding a bathroom.
Find a Tenant
Once the rental portion of the house is ready, it's time to find a tenant. In Austin, TX, there are many resources available to help you find a tenant, including online rental listing websites and local real estate agents. Screen potential tenants carefully to ensure that they are reliable and responsible.
Manage the Property
As a househacker in Austin, TX, you will be both the landlord and the tenant. This means that you will be responsible for managing the property and dealing with any maintenance or repair issues that arise. Make sure that you have a plan in place for handling any issues that may arise, and be prepared to take on the responsibilities of a landlord.
Househacking a single-family home in Austin, TX can be a great way to generate additional income and build wealth through real estate investing. By choosing the right property, crunching the numbers, making the necessary upgrades, finding a tenant, and managing the property, you can create a profitable investment that allows you to live in your own home while generating rental income in one of the fastest-growing cities in the United States.2023-04-17T06:23:24-07:002023-04-17T06:30:32-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17789Want to Live in East Austin?East Austin is a vibrant and diverse neighborhood with a lot to offer its residents. Here are some reasons why you might want to consider living in East Austin:
Cultural richness: East Austin is known for its diverse community and vibrant cultural scene. The neighborhood is home to a wide range of restaurants, art galleries, music venues, and festivals that celebrate the area's unique history and culture.
Proximity to downtown: East Austin is just a few miles from downtown, making it an ideal location for those who want to be close to the city center. It's also easily accessible via public transportation, including buses and light rail.
Affordable housing: Compared to other neighborhoods in Austin, East Austin offers more affordable housing options. This makes it an attractive choice for those who want to live in a trendy neighborhood without breaking the bank.
Outdoor recreation: East Austin is home to several parks and outdoor spaces, including the Govalle Neighborhood Park, the Walnut Creek Trail which is popular for walking, running, and biking and Givens District Park. The neighborhood also has several community gardens and green spaces where residents can enjoy the outdoors.
Strong sense of community: East Austin has a strong sense of community, with residents who are proud of their neighborhood and actively work to make it a better place. There are many community events and initiatives that bring residents together and foster a sense of belonging.
Overall, East Austin is a great choice for those who want to live in a diverse and dynamic neighborhood that offers affordable housing, outdoor recreation, and a strong sense of community.2023-04-10T05:43:13-07:002023-04-10T05:49:13-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17698Househacking a Condo in AustinIt's possible to house hack a condo in Austin. Condos can be a great option for house hacking because they typically have lower maintenance costs than single-family homes, and they often come with amenities like a pool or gym. Here are some tips on how to house hack a condo in Austin:
Look for condos with multiple bedrooms: When searching for a condo to house hack, look for units with multiple bedrooms. This will allow you to rent out one or more of the bedrooms to generate rental income while still having your own private space.
Check the condo association rules: Before purchasing a condo, make sure to check the condo association rules and regulations. Some associations may have restrictions on renting out units, so it's important to understand the rules before making a purchase.
Look for condos in desirable neighborhoods: Austin has several desirable neighborhoods that are popular with renters, such as downtown, South Congress, and East Austin. Look for condos in these areas to maximize your rental income potential.
Consider short-term rentals: If your condo association allows it, consider renting out your unit on Airbnb or other short-term rental platforms. Austin is a popular tourist destination, and short-term rentals can generate higher rental income than long-term leases.
Work with a knowledgeable real estate agent: It's important to work with a knowledgeable real estate agent who can help you find the right condo for your house hacking strategy. An experienced agent can help you navigate the condo association rules and find a property that fits your budget and investment goals.
Overall, house hacking a condo in Austin can be a great way to generate rental income while living in a desirable neighborhood. Just be sure to do your research and work with a trusted real estate professional to make sure you're making a smart investment decision. Reach out to us at The Moorhead Team as we have helped many people find great condo househacks!2023-04-03T14:55:42-07:002023-04-03T15:00:59-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17386SXSW Real Estate HacksHere are some potential real estate hacks for SXSW:
Rent out your home or apartment: If you live in the Austin area and plan on being out of town during SXSW, consider renting out your space on Airbnb or another vacation rental platform. You could potentially earn a significant amount of money during the festival.
Use SXSW as an opportunity to network: Attend real estate-related events during the festival, such as panels or happy hours, to meet potential clients or partners.
Look for off-market properties: With so many people in town for SXSW, it's possible that some property owners may be willing to sell off-market to avoid the hassle of dealing with a traditional sale. Keep an eye out for potential opportunities.
Consider short-term rentals: If you own a rental property in the Austin area, consider renting it out on a short-term basis during SXSW. You could potentially earn more money than you would with a long-term tenant.
Stay on top of market trends: Attend real estate-focused panels or talks during SXSW to stay informed about the latest trends and developments in the industry. This knowledge could help you make better investment decisions in the future.
2023-03-13T05:17:02-07:002023-03-13T05:20:15-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:17107Protest Your Taxes for a Better Home SaleThe most important thing to a buyer is whether or not they love your home and are so excited to move into it!
A close second for many buyers is the payment and a big part of the payment is going to be property taxes here in Texas. While buyers can buy down the interest rate on their mortgage they can't do anything about property taxes until they own the home.
That's where you can help buyers when selling your home. It's also important to remember that lots of buyers don't know they can protest or aren't confident they can get the taxes down to an amount that makes them comfortable. If you can have this already done for them it's the same as fixing up your home before selling. They get to see the finished product and don't have to figure it out for themselves.
Don't underestimate how competitive lower taxes can make your home look here in Texas. I write this from personal experience. It won't attract more people to see your home, you need to do that by pricing it right and making it look great. But, it will help them justify a more aggressive offer when they see how attractive their payment will be compared to other homes in this price range.
You may be asking, won't they see a lower tax assessed value and think my home is worth less? If they have a competent agent who can show them sales comps of similar homes, which everyone of them can they'll see that you're priced right and are just proactive about protesting taxes which will give them even more piece of mind about you as a seller!
Remember, you need to protest your taxes every year and this shouldn't be a last minute thing as those who protest more often generally end up with lower property taxes!2023-02-20T07:31:06-07:002023-02-20T07:53:07-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:16993Selling Your Home in the SpringIf you've been thinking about selling your home, now is a great time to do it. Not only does springtime bring warmer temperatures and an abundance of flowers, but it's also the most popular season for homebuyers. In fact, according to the National Association of Realtors' annual Housing Opportunities and Market Experience (HOME) survey, which measures buyer preferences by state and region, 80 percent of buyers prefer spring as their ideal time to buy a house. So if you want your home—and its value—to be noticed by prospective buyers this year, here are six reasons why now might be right for you:
Spring is a great time to sell your home, but you may be wondering what makes this time of year so popular.
Spring is a great time to sell your home, but you may be wondering what makes this time of year so popular. The answer is simple: the spring season is when most people start looking for houses.
The reason behind this trend has to do with two factors: firstly, it's easier for buyers to see the home during daylight hours; secondly, many families want to move in between the school year. So if you want your house selling as quickly as possible and at top dollar value then listing it on a sunny day during March or April should be your first step!
Spring is the most popular season for homebuyers.
Spring is the most popular season for homebuyers. This is because spring is a time of renewal and rebirth, as well as hope, promise and growth.
Spring buyers are looking for homes that reflect their desire for new beginnings in their lives. They want something fresh and exciting that will help them start over after a long winter spent indoors or hibernating in front of Netflix with hot chocolate (or maybe even some spiked hot chocolate).
Most buyers have already made their minds up by the end of summer.
You might think that you have all the time in the world to sell your home, but most buyers have already made their minds up by the end of summer. They've seen what they want, and they're ready to buy it. If you want to get top dollar for your property, then springtime is going to be your best bet--and not just because people are more likely to make an offer on a home during this season! If there's a bidding war over your property (and let's face it: who doesn't love seeing how high they can go?), then springtime could mean even more money in your pocket.
We're here to help!
If you're looking to sell your home, consider the springtime. This is one of the best times of year for homebuyers, and if there's a bidding war over your property, it can mean more money in your pocket. If you need help finding out how much equity might be available in your current home before making an offer on another property then contact us today!
2023-02-13T07:26:43-07:002023-02-13T07:33:25-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:16862How to have success as an agentTo be a successful real estate agent in Austin, TX, consider the following steps:
Get a real estate license: This is a legal requirement to practice as a real estate agent in Texas.
Build a network: Network with other real estate agents, mortgage brokers, inspectors, and contractors to increase your referral base and build your reputation.
Know the market: Familiarize yourself with the local real estate market, including current market trends, property values, and the demand for different types of properties.
Develop a marketing strategy: Utilize various marketing tools, such as open houses, online advertising, and email marketing, to reach potential clients and promote your listings.
Offer exceptional customer service: Establish a reputation for being responsive, reliable, and professional to attract repeat business and positive referrals.
Stay informed: Stay current on industry trends and new technologies, such as virtual tours and online marketing platforms, to stay ahead of the competition.
Stay organized: Maintain accurate records and use a CRM system to manage your leads, clients, and transactions effectively.
Remember, success in real estate requires hard work, perseverance, and a commitment to continuously improving your skills and knowledge.2023-02-06T16:38:16-07:002023-02-06T16:40:09-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:16470Buying An Investment PropertyThere are several factors to consider when choosing an investment property, including your financial goals, risk tolerance, and location preferences. Here are a few steps you can take to help determine what type of investment property is right for you:
Determine your financial goals: Do you want to generate passive income, build equity, or both? Your financial goals will help you determine the type of property and investment strategy that is right for you.
Consider your risk tolerance: Investing in real estate carries some level of risk, so it's important to consider your risk tolerance and the potential for fluctuations in the market.
Research different property types: There are several types of investment properties to choose from, including single-family homes, multi-family units, and commercial properties. Each type has its own set of risks and potential rewards, so it's important to do your due diligence and understand the pros and cons of each.
Evaluate the location: Location is an important factor to consider when investing in real estate. Look for properties in areas with strong rental demand and potential for appreciation.
Get professional advice: It's a good idea to consult with a financial advisor or real estate professional to get advice on which type of investment property is right for you. They can help you evaluate your options and make an informed decision.
At The Moorhead Team we love investing in real estate in the Austin area so please reach out with any questions you have!2023-01-09T14:47:05-07:002023-01-09T15:04:30-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:16294Saving to Buy a HomeSaving to buy a house can be a long-term and complex process, but there are some steps you can follow to help you reach your goal:
Determine how much you can afford to spend on a house. Consider your income, debts, and other expenses when determining your budget.
Create a savings plan. Decide how much you can realistically save each month and set up a budget to help you reach your goal.
Look for ways to increase your income. You may be able to earn more money by taking on additional work or negotiating for a raise at your current job.
Cut expenses where you can. Look for ways to reduce your expenses so you can save more money each month.
Consider saving for a down payment in a dedicated account. This can help you build your savings more quickly and make it easier to reach your goal.
Consider other options for saving for a down payment, such as using a 401(k) loan or working with a mortgage broker to find a loan with a lower down payment requirement. You may even be able to get down payment assistance.
Seek financial advice from a professional. A financial advisor or mortgage broker can help you understand the steps you need to take to save for a down payment and help you find the best financing options for your situation.
2022-12-27T06:45:34-07:002022-12-27T07:03:25-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:16109Where to Move in Austin?Austin, TX is a vibrant city with many great neighborhoods to choose from. The best place to move in Austin depends on your preferences, budget, and lifestyle. Here are some neighborhoods to consider:
Downtown: If you want to be in the heart of the action, downtown Austin might be the perfect place for you. It's home to some of Austin's best restaurants, bars, and music venues, as well as museums and cultural attractions.
South Congress (SoCo): South Congress is a trendy neighborhood with a bohemian vibe. It's known for its vintage shops, food trucks, and street art.
East Austin: East Austin is an up-and-coming neighborhood with a diverse population and a vibrant food and music scene. It's also home to many breweries and coffee shops.
Zilker: Zilker is a beautiful, family-friendly neighborhood that's home to Zilker Park, Barton Springs Pool, and the Umlauf Sculpture Garden.
West Austin: West Austin is known for its stunning hill country views, upscale homes, and great schools. It's a popular choice for families and professionals.
Hyde Park: Hyde Park is a historic neighborhood with charming bungalows and tree-lined streets. It's a great option for those who want to be close to the University of Texas.
Mueller: Mueller is a newer neighborhood that's built around a sustainable community concept. It has a variety of housing options, as well as shops, restaurants, and parks.
Ultimately, the best neighborhood for you will depend on your personal preferences and priorities. It's a good idea to visit each neighborhood, explore the area, and talk to locals before making a decision. Reach out to us here at The Moorhead Team and we'd love to help you narrow down your search with our knowledge of the areas!2022-12-12T07:39:56-07:002023-02-27T07:07:34-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:15994How to Househack in AustinTo house hack in Austin, you can either purchase a property with multiple units and live in one of the units while renting out the others, or you can purchase a single-family home and rent out rooms to tenants. This can be a good way to save money on housing expenses and potentially even make a profit. Here are some steps to follow if you want to try house hacking:
Research the Austin to find a property that fits your budget and has the potential to generate rental income. Find a great agent who knows househacking in Austin, TX to help with this!
Calculate the expenses associated with the property, including the mortgage, insurance, taxes, and repairs.
Determine how much rent you can charge for the additional units or rooms in the property, and calculate your potential profit.
Secure financing for the property, either through a traditional mortgage or alternative financing options such as owner financing or a hard money loan.
Close on the property and move in.
Rent out the additional units or rooms and manage the property.
It's important to keep in mind that house hacking can be a lot of work, and you'll need to be prepared to handle the responsibilities of being a landlord. You'll also need to make sure that the property is up to code and complies with local laws and regulations in Austin, TX.2022-12-05T13:13:04-07:002022-12-05T13:17:23-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:15887Should I Renovate?When you're ready to sell your home the last thing you want to do is to start renovations. It's completely normal to be ready to sell and to just want to cut it and run. This is exactly why companies formed to give you lowball cash offers that require you do nothing but turn over the keys. But it comes at a cost.
When you press the easy button you always give up a lot of money. Most people want to get the most money they can when selling their house. To do that you need to do a few things. You need to make your home look great and you need to price it right. If the goal is to make the most money possible you'll need make it as nice or nicer than any other home that's sold recently around you and still price it right. No matter what a perfect, move in ready home will sell for more, faster. In every market this is the case!
The question of this blog is still unanswered. Should you renovate or not? As with most questions the answers is, "it depends". Money is not as much of an issue as you would think because of programs like Keller Offers' Ready to Sell program that will pay for your renovation up front, allowing you to pay it back when the home sells. The bigger factor is time, if you have the time to renovate the home before you sell then I believe you should. No time and you have to sell asap? That would be the only time I wouldn't recommend it, with the caveat that it still pays to make sure any small issues are fixed, the house is extremely clean and the property is properly staged. There will always be work to be done to sell, it will always be inconvenient, it will always pay off!
Of course, always consult a real estate professional like our team here at The Moorhead Team to determine what's worth doing before you start renovations. You certainly don't want to spend money that you won't get back. But no matter what ensure that your home is priced right, presents well and is the cleanest it's ever been!2022-11-28T06:52:24-07:002022-11-30T09:45:26-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:15458Make the Offer!Hunting for that next property is a lot of fun! Looking at houses and finding the perfect house may seem like it's the most important piece but the real action starts when you start making offers.
Making an offer to buy a home isn't as complicated as it sounds and is not something that can never be taken back. It's actually really simple and standard real estate contracts have lots of contingencies that protect you from making a bad purchase.
All you need to make an offer is to know what price you want to offer and then a few simple contract terms. This doesn't have to be the price the seller is asking or even anywhere close to it. A property could be listed for $500,000 and you can offer $400,000, that's ok and can be fun to do! It doesn't mean that your offer will be accepted but most sellers would rather have an offer than not. So just to recap all you need to make an offer in Texas is:
Price
Closing Date (check with the lender here)
Option period length (unrestricted right to terminate the contract, usually between 3-10 days)
Option fee amount (price you pay for the option period)
Earnest Money Amount
Pre approval from a lender or proof of funds if you're making a cash offer
We highly recommend you write a cover letter to go with any offer
There are other pieces of a standard real estate contract but these are the big rocks. As long as you get these together and your agent can help with this, then you're ready to make an offer!
On our team we commonly tell buyers that the process will take between 3-6 months and somewhere in the range of 3-10 offers before you close on a property. It might be quicker with less offers and it could take longer with more offers, this is just the average of what we see. So get out there, start looking at houses and make some offers! Remember, these offers don't need to be the advertised price and can be whatever you want to offer.
Reach out to an attorney for legal advice on any contracts or contract terms you have any questions on. The Moorhead Team is a team of licensed Realtors and this is by no means legal advice.2022-10-31T06:06:39-07:002022-10-31T07:10:43-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:14022Make the rate work for you!Interest rates are nowhere near all time highs but that's irrelevant.
You'll hear people parrot "interest rates are historically 7%, these rates are still low compared to that!". They're missing the point.
As a homebuyer or investor you don't really care about the interest rate, you care about your payment. What happens when interest rates rise, payments go up. This matters for everyone.
So yes, interest rates are still *historically* low if you're looking back 50 years but payments are getting historically high because of increases in interest rates, property tax and also insurance costs going up.
So what do you do? Real estate is still an amazing way to build wealth and not everyone wants to live in an apartment where they have no yard, no garage and also can't conrol their rent cost. I'll outline a few ways we're helping buyers increase their afforability of the payment.
Your rate is not permanent! If and when interest rates go back down you can always refinance into a lower rate. Typically this makes sense when the rates drop 1% or more. You can also roll the costs into the loan so there are no out of pocket costs.
Get the seller to buy down your rate! You can pay to buy down the interest rate of a loan either temporarily or permanently. This is rather costly but can make a lot of sense if you're trying to lower you payement. The good news is that the seller can give you credits back to get this done too, so no money out of pocket.
Put more money down. If you put more down your payment then your payment goes down. Of course this takes more money, but it's not a new strategy and you can apply our other two strategies to make it even better! If you put more than 20% down too you don't have to pay mortgage insurance.
It's important to remember that rates going up slows down lots of buyers. When rates rise it's typically an easier time to get a great deal. Get out there and make aggressive offers with huge rate buydowns included to make it a great deal for you!2022-08-08T09:47:00-07:002022-08-08T11:13:28-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13778Is it the right rime to Househack?Is now the right time for you to buy your first or next househack?
It's never not the time to househack in our opinion!
For your own purposes you need to answer a few questions. The first is what are your current living expenses and can you reduce those by househacking? Second, do you have the down payment or ability to get a gift or down payment assistance through any programs? Lastly, are you ready to start building assets and passive income?
Househacking can seem like a huge responsibility or even an impossible task. It can even seem like a huge risk to take. All you have to do to make yourself comfortable is to change perspective. Househacking is a combination of buying a home and buying a rental property. People don't look at buying a home as a risk and you have to pay all of that mortgage payment. With househacking you only pay a small piece! If anything, househacking is less risky that buying a home! It's probably the least risky and most powerful financial decision you'll ever make, so take advantage of it when you can.
So you've decided that you could live for less while househacking, what are the next steps? We highly recommend that before you start looking for your first househack that you start by analyzing some deals. Look at what the property would look like after you move out to understand if it will be a good rental property. Don't expect to make money while you're in it, just reduce your monthly housing expenses, although you can get very creative and profit. It has to work well as a rental unless you plan to stay there for a long period of time. Most people plan to stay for a year or two.
We always think it's the right time to househack and agents on our team are taking advantage of this. No matter what's going on in the world it's never a bad time to reduce your living expenses and buy cashflowing assets for very low money down!2022-07-18T05:04:00-07:002022-07-18T06:50:35-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13661Austin's Best RestaurantsBest Austin Restaurants
The most important question we ask on our podcast, the Austin Real Estate Real Estate Investing show is, “What’s your favorite restaurant in Austin?”. This is one of the hardest questions to answer since there are so many great restaurants here in the Austin area! Whether you’re brand new to Austin or have been here for decades you will be able to find some new spots on this list from over 100 podcast guests.
Taquerias Arandinas
Amaya’s Taco Village
Via 313
Azul Tequila
Zu Zu’s
Top Notch Hamburgers
Dan’s Hamburgers
Cheesecake Factory
Vaquero Taquero
Rudy’s BBQ
Loro
Red Ash
Ramen Tatsu Ya
Trudy’s
Perla’s
Lonesome Dove
Sway
Maudie’s Tex Mex
Shandeez Grill
Paperboy
Java Café
Lenoir
Cabo Bob’s
Barley Swine
Uchi
Taco Deli
Emmer and Rye
Chipotle
Nancy’s Sky Garden
Rosita's Al Pastor
1618 Asian Fusion
Entero
Soto
Lupe Tortilla
Franklin’s BBQ
Truluck’s
Julie’s Noodles
Manuel’s
Whataburger
Black’s BBQ
Stinson’s
Casa Chapala
Little Deli
Matt’s El Rancho
El Alma
Uchiko
Salty Sow
Vera Cruz
Bufalina
Licha's Cantina
Odd Duck
Tenten
Madam Mam’s
Valentina’s BBQ
Max’s Wine Dive
T-Locs
Flores
ATX Cocina
Casa Colombia
Tyson’s Tacos
Dirty Martin’s Place
Perry’s Steakhouse
Cooper’s
Louie Mueller BBQ
El Mancha
III Forks
The Switch
Stiles Switch
Chuy’s
La Barbecue
P Terry’s
BD Riley’s
Polvo’s
Smokin Beauty
Mezzame
Peached Tortilla
Tan My
Interstellar BBQ
Dai Due
Fonda San Miguel
Steiner Ranch Steakhouse
Tsuke Edomae
Swift’s Attic
True Food
Chili’s
North Italia
Patrizi’s
Home Slice
Bartlett’s
Bamboo House
Highland Lake’s Grill
Baker’s Brisket
Fogo De Chao
Vespaio
Valentina’s BBQ
Fonda San Miguel
Sushi Bar ATX
Twin Panda
Pho Hoang
Sushi Junai 1
Tipsy Alchemist
Dai Due
De Nada Cantina
Otoko Sushi
2022-07-11T05:18:00-07:002023-03-18T08:20:08-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13524Living in AustinThis is just a quick post on why we love living in Austin!
There are so many reasons to love Austin, I'm sure there're many we'll leave off here.
Number 1 for us is just the general energy and the vibe of Austin. Austin somehow manages to be one of the most laid back and driven places you've been at the same time. This city and it's people are going places, but they're some of the most kind and genuine people you'll ever meet. Maybe it's the plethora of outdoor activities, live music, taco trucks or various swimming holes but the city is doing well at holding true to it's laid back, care free roots.
The food is amazing! Where else can you find th mix of amazing BBQ, tacos, tex mex, italian, burgers, sushi and various ethnic foods? In fact three Austin chef's were just nominated for James Beard awards and two won!
The opportunities are endless. Whether you just want a great job with a great lifestyle, want to start a small business or are looking to bring the next big idea to light with your startup Austin offers opportunities for everyone! We have some of the highest salaries and lowest unemployment in the country right now and we have a vibrant start up culture with new VC's moving to town what feels like every day. All of the giants like Tesla, Samsung, Google, Meta, Dell, Apple and Amazon bring lots of jobs with them but they also bring lots of opportunity to serve their billions in investments and feed off of the business that they're bringing to town.
Now to the piece that may resonate if you're on our site. The homes. There are so many different types of living situations in the Austin area. If you're a city living type of person there is a vibrant downtown with condos galore and walkability to everything. Want a house but also want to be able to walk? Check out Old West Austin, Clarksville and Tarrytown just to the west of downtown. A modern new build is more your fancy? East Austin and South Austin have that too! You can get an amazing new home just minutes from everything you would ever want. Looking for a Texas sized home with a nice yard? You have so many options anywhere from Kyle, Buda, Leander, Austin, Round Rock, Hutto, Pflugerville and Bastrop. Do you love the small town feel but want to be within a short commute to the city? Elgin, Lockhart and Taylor have what you need! There are so many options and you can find what your heart desires in Austin, no matter what that is.
If you're like us you can't stop finding reasons to live in Austin because of the exciting growth and cool events like <a href="https://www.sxsw.com/">SXSW</a> (South by Southwest), <a href="https://www.aclfestival.com/">ACL</a> (Austin City Limits), <a href="https://www.formula1.com/en/racing/2022/United_States.html">Formula One</a> and <a href="http://circuitoftheamericas.com/motogp-2023">Moto GP</a> at Circuit of the Americas. If you'd love to learn more about Austin just reach out to us <a href="https://www.themoorheadteam.com/contact/">here</a>, we'd love to show you around!2022-06-27T04:05:00-07:002022-06-27T05:42:19-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13414Selling in a Shifting MarketWe're shifting out of the extreme sellers market that we've been in the last 2 years or so.
It's not necessarily a bad thing, but things have changed and most likely will continue to change.
As I write this in June of 2022 we have around 4000 homes for sale, in 2021 at this time we didn't even have 2000 homes for sale, for the few years prior to 2021 we had closer to 7000 homes for sale.
Simply put, when there are more homes for sale to meet buyer demand, buyers aren't willing to pay as much for homes. Buyer demand has shrunk recently because interest rates have doubled since 2021. But we're not seeing prices go down at all, we're just not seeing buyers bid up properties as much as they were in 2021.
So this isn't a bad thing. It still means if you have a home that you bought in the past and you go to sell it today you're going to get top dollar for it. Depending on how long ago you bought it you could make double what you paid for it.
That being said, now is not the time to get optimistic with your pricing. Homes that are priced incorrectly based on their condition and the recently sold properties in the area are not selling quickly and/or for full price. It might seem to be common sense but you don't get to pick what your home is worth. It's worth what a buyer will pay for it and the easiest way to understand what a buyer will pay is by looking at recently sold properties that are of similar size, similar construction and in similar condition. A 2 bedroom, 1 bathroom home that needs a full remodel is not worth the same as a 3 bedroom, 2 bathroom home that's recently remodeled with great finishes and is 40 years newer.
So how do you find out what's sold around you recently like what you own. Zillow has that data right? Not in Texas. Texas is a non-disclosure state, meaning what properties are sold for is not public record. And no, that tax assessment is not the value of a home. That's the counties best guess, with the limited data that they have; which isn't much because they too don't have access to sold data.
To get true and accurate data you need to work with a trusted Realtor who has access to the MLS (Multiple Listing Service) and knows how to interpret the data through experience and knowledge. If you'd like help with this just reach out to us for a <a href="https://www.themoorheadteam.com/sellers/free-market-analysis/" target="_blank">Free Market Analysis </a>and we'd love to help in the Austin area. Let us know if you need help in a different area and we'll refer you to one of the expert agents in our network.
To recap. The market is changing from where it was the last 18 months but, we're still far below the amount of homes needed or even the amount of homes that were for sale over the last few years. To be a competitive seller in todays market you need to price right, the home needs to look great and you need to market well but most importantly you need to be realistic with your pricing. If it doesn't make sense to sell at this time, don't. If it does, then make it look great and enjoy the incredible price appreciation Austin has seen!2022-06-20T04:31:00-07:002022-06-20T06:26:23-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13349Househack Multiple Times for True WealthHousehacking in Austin is awesome!
You save money, get to live where you want, in a house that's appreciating, that your tenants are helping you pay down AND that saves you money on taxes at the end of the year.
Yes, househacking is an incredible way to build wealth, passive income and save money.
You know what's even better?
Househacking a few times!
We'll use an example of the a home price in the Austin area of $400,000, which is a typical entry level single family househack in 2022. For duplex assume $550,000. Let's say you buy one $400,000 househack. In 30 years your total gain in loan paydown, appreciation, cashflow and tax savings will be over $1,000,000. Quick math, $380,000 loan paid off. Low end appreciation of 3% over 30 years (low end), $970,000 value in 30 years. Even a measely $100 a month cashflow adds another $30,000 and that's assuming rent doesn't go up which we know it will. You can also assume tax savings of around $5000 a year minumum which is $150,000. So you can see one househack EASILY will make you over $1 Million dollars in 30 years, a number many try to save for retirement through retirement accounts.
This also leaves out that your househack that is now worth $1 Million while paid off in 30 years earns more than $3000 a month in pure cashflow, on the low end. Meaning you don't even need to sell it to do very well.
Imagine that you do this two, three, four, five times. If you move every year for 5 years you can easily have a portfolio that's worth over $5 Million dollars that also cashflows you over $15,000 a month in 30 years.
Sounds like a decent retirement huh?
The best part is it's extemely easy to do and there is no better place to do this then Austin, Texas!2022-06-13T05:35:00-07:002022-06-13T06:52:29-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:13254Househacking in AustinWe love Househacking!
At The Moorhead Team many of us started by making a househack our first home.
For those not familiar with the term househacking is buying a property and renting out all of the extra space that you aren't using. This could be a multi unit property where you live in one unit and rent the others or a single unit property where you live in one room and rent out the others. You can also combine these strategies and buy a multi unit, rent out the other units and then rent out your extra rooms in your unit to friends. Another popular way to househack is to buy a single family property with an Accessory Dwelling Unit and rent out the ADU on Airbnb. This can be a great way to do a luxury househack and buy a great house in a nice area, but subsidize living there through the ADU income.
There really is no wrong way to househack and all you have to do is utilize your primary residence to make income which will offset mortgage expenses and lots of times allow you to live completely for free.
Think of it as a comfortability scale where the more uncomfortable you're willing to get, the more money you'll make. Many of our clients not only live for free, but they get paid to live in their own homes. Others live in amazing homes in amazing areas and only pay a small amount to live there.
There are a few major benefits to househacking:
Saving on housing expense. This is the biggest one in our opinion. Every dollar you save is worth more than $1 since it's after tax money. Essentially every dollar saved is worth at least $1.30 in Texas.
You get to convert the property to a rental property when you leave it. If you desire and you've set out to make this a rental property later it can be a pure rental property after living in it a year.
You get the normal benefits of owning a property which are loan paydown, appreciation and tax benefits including mortgage interest deduction while you live there and adding on depreciation after you move out.
Home ownership has essentially created the middle class. When you throw a few househacks in there it's impossible to not turn out a millionaire over a period of 30 years, at the very least! We've had people on our podcast, <a href="https://podcasts.apple.com/us/podcast/austin-real-estate-investing/id1526289523">Austin Real Estate Investing</a>, who have become deca-millionaires off of househacking.2022-06-06T05:21:00-07:002022-06-06T06:42:57-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12918Austin's Real Estate Investing TeamWe love investing in Real Estate in Austin!
Everyone on our team here invests in real estate, we've all found ways to find cashflowing real estate and done renovations to add value. We've actually done most of it on the MLS too!
All of us have gotten our start by househacking, which is buying a property and renting out space you don't use. Many of our agents are still househacking and have done several at this time. We believe in the power of real estate to build wealth and pursue financial freedom and continue to invest!
All of our agents also started as investors first and then later got their real estate license because of their passion for real estate and helping others! We believe this gives us an advantage over other agents because we understand real estate on a fundamental level and also know what it's like to buy real estate using an agent. This allowed us to use what was done well and improve on the systems to deliver a great experience by knowledgeable agents who understand investing.
We strive to be the go to investment Realtors here in the Austin area and we'd love to help you too!2022-05-09T05:17:00-07:002022-05-09T06:49:11-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12759Selling an investment propertyAre you tired of managing your investment property? Maybe expenses have gone up so much it just isn't worth the work anymore.
If you're thinkning about selling your investment property in Austin here are a few things you can do to make the sale very profitable and at the same time smooth.
These are specific to investment property and the same advice applies for normal property sales of:
Spruce the place up a bit
Fix any glaring issues
Make sure you have a great first impression
Get professional photography taken
Items that only apply to investment property are:
Talk with your tenants before the sale. Assure them that their lease is good and make sure they'll cooperate with showings. If not, it may be time to non renew the lease. Do not let this cost you money!
Do not renew leases. Let your leases stay month to month if possible. You need to give the buyers the most flexibility possible if you're aiming for the highest price.
Consider non renewing all tenants and getting the property ready for sale vacant. Residential properties are not valued mainly on income. If you have a multi unit consider leaving one occupied, but again, if you can leave it with a month to month lease this is the best situation.
People love investing in real estate because they have control. Remember that long leases may sound good to you as a landlord but a new buyer may want the control to do what they want with the property!2022-04-25T05:13:00-07:002022-04-25T06:22:21-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12550Monthly Rentals in AustinWe love Monthly Rentals here in Austin for a few reasons!
They make great income! Typically you can get around double the long term rent on a monthly rental.
They're very little work. Monthly rentals are not like a short term rental at all with people in and out, constant turns, various requests, etc. People just need a furnished place to stay for a month (or a few). They move in, settle in and get to doing whatever they've come for.
There is a tremendous amount of demand for monthly stays. Remote work, moving to Austin, travelling nurses, extended vacation and selling a home in Austin with nowhere to immediately go are some of the major reasons for monthly stays in Austin.
Monthly rentals are the way to go if you want to double your cashflow with rental property in Austin! Reach out if you have any other questions.2022-04-04T05:02:00-07:002023-06-26T05:58:25-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12433Protest Your Taxes!Property taxes in Texas are high! For this reason you should always protest them.
It doesn't cost you anything and you can even use an attorney for no upfront cost many times. If you hire an attorney like <a href="https://texasprotax.com/">Texas Pro Tax</a> they only charge when they're successful. Typically in the amount of 30-40% of the savings they get you. So if they save you $3000 in tax, you would only pay $1200.
Why should you care about lowering your taxes if you're selling your house? Because the buyers do.
A house with lower taxes is extremely attractive to buyers because it affects their monthly payment. Additionally, because buyers are qualified based on what sort of monthly payment they can afford this reduction in taxes can allow them to pay more for your house!
So go protest your taxes! You could save a lot of money and also sell your home for more!2022-03-27T12:53:00-07:002022-03-28T06:38:50-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12328Sell Your Duplex!<a href="https://youtu.be/4CLEBdmR-YU">Sell Your Duplex for Maximum Profit!</a>
Click the link above to watch a quick video to learn how to make the most money possible off of your investment property. As investors we know you've worked hard on this investment and deserve to make as much money as possible off of it. There are a few easy things you can do that will makes you tens of thousands of dollars very easily.
1. Leave at least one side vacant or month to month. This gives the new buyer flexibility to do what they want with it, which could be living in it.
2. Make it look great and make sure you get professional pictures taken! A little bit of cleaning up can go a long way and use a photographer to showcase this. People first see your property online and you need them to be excited to look further.
3. Fix any glaring issues with the property. Don't know what's wrong? Ask your tenants, they'll be happy to tell you.
4. Make showing the property as easy as possible. Properties that can be seen before an accepted offer sell for more, always. Make sure people can get into one or both units without too much hassle.
5. Make sure the rents are at or above market! Raise your rents before you sell, this will be attractive to any new buyer. People never pay as much when the rents are low. Your Realtor or Rentometer.com are a great way to find out what you should be getting for rent.
If you follow this 5 simple points we guarantee you'll sell for more! It may take a little bit of work but the payoff is tremendous. Don't just leave it for the buyer to do, they'll pay you more if it's done.2022-03-14T05:25:00-07:002022-03-14T06:44:30-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:12104How to sell your investment property for maximum profit!Selling an investment property can be complicated and many times it is done incorrectly if you're trying to maximize profits!
Most investor's knee jerk reaction is that they want to sell to another investor. This is not wise if your goal is to make as much money as possible, but can be the right direction to go in if you want the transaction to be as easy as possible. There's not a wrong way to do it, it just depends on your goals.
For today's article we'll come from the direction of maximizing profits. You want to do a few things when trying to maximize profits that are the same as when you're selling a personal residence.
Fix any glaring issues up front. It's worth the money for most small repairs, consult with an experienced agent to know what's worth it and what's not.
If you have any doubts about paint, paint the place. Paint is the cheapest and easiest way to make a property look completely different.
No matter what take great pictures. You or your Realtor need to have a professional take pictures and edit them to really make your listing shine. Realtors with an iPhone are not professional photographers. My team knows this, which is why we pay for professional photography on every listing. Even if the place needs work the pictures are worth it.
Consider staging. Even virtual staging can go a long way when attracting buyers to your property.
Yes, the market is hot. Yes, it's easy to sell a house. But why wouldn't you do your absolute best to make sure that you attracted the best and most motivated buyer to see a listing? Spend a little money to make a lot of money. An experienced agent is worth their weight in gold when you're looking to market your home and make the most money. Personally I've made hundreds of thousands by buying listings that weren't marketed well, had poor pictures and had lots of small menial repairs that should have been done.
When you're selling an investment property there are a few other ways to make sure you stand out.
Allow showings. So many investment property sales only allow showings after an accepted contract. You might as well price your property 10% lower if you're going to do this. Properties that can't be viewed always go for less, no matter what.
Leave a vacant unit if at all possible. If you can't do this let the leases go month to month if you know you're going to sell in the near future. With residential property (1-4 units) your highest paying buyers are going to be owner occupants or at least want the flexibility to ask the tenants to leave. This advice does not apply to commercial multifamily (5+ units), assuming your rents are at market.
Raise the rents. Ideally you keep them month to month but don't expect the buyer to know what the rents could be. Find out what market rent is and make sure you're there. This is why having an investor agent is very helpful. Properties that are rented at market or above market sell for more.
If you own investment property in Minneapolis - Saint Paul, MN or Austin and San Antonio areas in Texas reach out to us! We'd love to help you find out the value of your property or help you sell them! We can give a cash as-is offer and also let you know what we could get you on the market with our full marketing package. We're a team of investor agents and know how to handle sales of investment property.
Contact us at info@themoorheadteam.com or <a href="https://www.themoorheadteam.com/" rel="noopener nofollow" target="_blank">www.themoorheadteam.com</a>2022-02-28T08:51:00-07:002022-03-21T13:52:59-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:11825Buying an Airbnb in Austin, TXAirbnb in Austin can be a great way to boost your profits from your property! When we talk about Airbnb's we really mean Short Term Rentals which we'll refer to as STR in the rest of this article.
STR's are an incredible way to provide amazing places for people to stay when travelling but have recently been under fire from municipalities and Austin is one of those cities making it hard to run an STR.
There are a few amazing reasons to want to figure out how to make STR work here in Austin:
Higher cashflow than a typical rental property.
You can make money off your home when you're not using it.
You can provide amazing experiences for guests which is very rewarding.
Austin has made it slightly difficult to pull off running an STR. The simple fact is that you need a license. The complicated part of it is that a license can be hard to get and has a cost associated with it to get started. There are currently 3 types of STR licenses in Austin. <a href="https://www.austintexas.gov/department/short-term-rental-license-program">Click this link</a> to get to Austin's page about Short Term Rentals.
Type 1: Owner Occupied
Type 2: Non Owner Occupied
Type 3: Non Owner Occupied (Commercial)
Type 1 is pretty easy to get provided the property is your homestead. All you need to do is pay the fee and provide proof that this is your primary residence.
Type 2 is something that is very hard to do. They only allow a very small amount of these licenses and most people that have them were running STR rentals long before the regulations.
Type 3 applies to large commercial projects like Natiivo down on Rainey St. They are granting these licenses but this is a different kind of game that the residential investors we know and work with aren't playing.
<a href="https://www.austintexas.gov/page/types-short-term-rentals">Click this link</a> to learn more about these in Austin.
Now that we've gone over the basics of STR in Austin let's cover how you can make an STR in Austin a reality for you! We help people with this all the time and it is possible despite what people say. We here all the time, "You can't Airbnb in Austin". The question needs to be, "How can I airbnb in Austin".
What works!:
Get an STR Type 1 permit and rent your dwelling out when you're not in it.
Buy a duplex and get an STR type 1,A for the other unit
Buy a property in one of Austin's ETJ's (Extra Territorial Juristdiction)
You are probably wandering why an ETJ would matter. From Austin's website: "Properties in Austin’s Full Purpose Jurisdiction and in Limited Purpose Jurisdiction require an operating license."
An ETJ is neither of these! Hence operating in an ETJ exempts you from the requirements of other jurisdictions. Keep in mind properties in an ETJ also don't have many of the cities services. We've seen some of these properties have septic, propane and even wells in some cases. This is the easiest way we've found to run a non owner occupied STR in the Austin area.
If you're interested in more information about buying a property for short term rental purposes in Austin reach out to us! We have lots of great resources and even property manager referrals that will help you maximize income while minimizing your work.
2022-02-21T06:28:00-07:002022-02-21T06:51:33-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:10490Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/3542/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2021-10-18T14:16:00-07:002021-10-18T14:18:01-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:10489Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/3542/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2021-10-18T14:16:00-07:002021-10-18T14:18:14-07:00Jordan Moorheadtag:themoorheadteam.com,2012-09-20:10488Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/3542/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2021-10-18T14:16:00-07:002021-10-18T14:18:10-07:00Jordan Moorhead