BRRRR in Austin, Texas

Local Snapshot — Austin, Texas

Austin's tech boom creates premium BRRRR opportunities with high-income tenant base and strong appreciation potential. While entry costs are higher, rental premiums and market velocity support aggressive strategies. Focus on areas serving tech corridor and university demand for optimal performance.

Last updated: 2024-09-24

Sources: Tax• Vacancy• DOM

Local BRRRR Notes

• Inventory & comps: Verify comparable sales supporting your ARV; track days on market and supply trends.
• Rent checks: Confirm realistic rent using multiple sources; underwrite concessions and lease‑up time.
• Permit timelines: Speak with local building departments for scope‑specific requirements.
• Contractor bench: Line up multiple bids and references; enforce clear milestone payments.
• Exit & DSCR: Size loan proceeds under conservative DSCR and rate scenarios.

Talk to a financing specialist to structure your deal.

Financing Benchmarks

• Target DSCR ≥ 1.25–1.35x given Texas's stable rental markets and growth potential.
• Purchase LTV typically 75–85% for experienced investors in primary metros.
• Refi LTV commonly 70–80% subject to ARV appraisal and market conditions.
• Seasoning requirements 6–12 months; some lenders offer 3-month programs for seasoned investors.
• Carry 12–18% rehab contingency due to recent material and labor cost volatility.
• Maintain 8–12 months reserves; Texas markets can absorb rate fluctuations well.
• Cash-out refinance proceeds often 75–85% of ARV depending on market and property type.