Austin, TX 78736
Oak Hill Fourplex, 3,920 square feet (2 bed/1.5 bath ~956 sq ft./ea.) just one minute from the "Y" at the US-290 and HWY-71 split, providing direct access westbound toward Dripping Springs and Bee Cave, TX and a convenient 13 minutes east to DT ATX.
Thesis: Leverage W-2 income for an owner-occupied acquisition at 90% LTV with a 30-year fixed-rate mortgage (~2.25%). Mark-to-market rents, as existing in-place rents from the legacy owner are well below market, while addressing deferred maintenance to optimize operations. Situs is ~18K square foot or .4 acre lot providing the potential to rezone to MF-1 from SF-1, thereby allowing the addition of 2 ADUs, and significantly boosting NOI / Net Cash Flow.
Austin & Killeen, TX. (Quadruplex aka Fourplex, Mark to mkt Rents & LiGHT Value-Add)
Fourplexes are the largest "residential" buildings that qualify for residential loans, whereas properties with five or more units require commercial loans. The key advantage is that FHA loan limits (which vary by county) allow W-2 earners to owner-occupy a unit in a duplex, triplex, or fourplex while using in-place rents as qualifying income to meet lender requirements—essentially enabling a house-hacking strategy for multifamily properties. For those who cannot owner-occupy, a fourplex remains an attainable investment, typically requiring a larger 25% down payment (75% LTV).
Killeen, TX 76542
Killeen, TX fourplex, “townhome” style where all units have an upstairs with two bedrooms and full bathroom while kitchen, family room, & guest half bath downstairs. 4,084 square feet (2 bed/1.5 bath ~1,021 sq ft./ea.)
Thesis: Proximity to Austin will push Killeen’s rents long term. Legacy owner had rents $100-250 below market rents. Long-term buy & hold. Acquired below replacement cost with 30-year fixed-rate mortgage ~3.75%.
Sacramento, CA 95841
A “McKeon” fourplex in the Garfield Hills area of north Sacramento, CA. Each unit is a 2bd/1ba with 900+ sq. ft. each.
Acquired Oct 2017. ~4.0X Unrealized Equity Multiple (EM).
Thesis: Legacy owner had rents $300+ below market rents. Long-term buy & hold. Acquired below replacement cost with 30-year fixed-rate mortgage 4.75%.
Austin, TexaS Single Family Being Rented as both an ltr and exploring furnished mtr
Austin, TX
78723
3 bedroom, 2 bathroom, 2,000 sq. ft. steps from Little Walnut Creek Greenbelt.
Acquired Mar 2023.
Thesis: 5% down, 30-Year fixed, LTR / Furnished Medium Term Rental to maintain CF neutral while betting on a capital appreciation play given adjacency to Dell Children’s Medical Center & the Mueller Redevelopment, a $1.3 billion project transforming the former Robert Mueller Municipal Airport into a sustainable, mixed-use urban community. The development plan includes 4,600 homes, 4.2 million square feet of commercial space, and 140 acres of green space. Upon completion, it is expected to create approximately 10,000 permanent jobs.
Sacramento, California near-in suburban single family (LTR)
Rancho Cordova, CA 95670
3 bedroom, 2 bathroom, 1,511 square foot, serving as a long term rental 8+ years.
Acquired Feb 2017. ~4.0X Unrealized Equity Multiple.
Thesis: Remote work driving even upper middle earners to Sacto, with it at the time, being half nearly even a third of the median price home from markets 90 minutes away (Oakland, San Francisco, Bay Area).