With the $2,000 per month rent they could likely get, their monthly costs would exceed their income, so the couple decided that their best path forward was to sell the house after completing the renovations. In addition to the purchase price, they spent roughly $65,000 on the renovations, $5,000 on property taxes, and another $22,500 on carrying the property - including closing costs and monthly mortgage payments - for a few months while the renovations wrapped. Rents were also climbing, which meant the money coming in from tenants often exceeded the cost - including principal, interest, taxes, and insurance - of holding onto the home.Įxcept, this time, the numbers didn't work out as Holland had originally planned. Home prices were increasing at what seemed like an exponential rate, which meant cash-out refinances were lucrative. Their initial goal, as with their previous projects, was to turn the house into a cash-flowing rental property, then use money they'd get after refinancing to purchase their next fixer-upper.Īfter all, the Austin market was booming. It was the fourth property in the last three years that the couple had purchased and renovated.
Jessica Davis Holland, an Austin, Texas real-estate investor, and her husband recently spent $225,000 on a three-bedroom, two-bathroom home in the growing suburb of Cedar Creek. Account icon An icon in the shape of a person's head and shoulders.
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