Ep# 151: How to Design the Lifestyle You Dream of Through Real Estate Investing with Open House Austin
One of the core principles of scaling up is diversification. Are you looking at all the different angles and opportunities to grow and scale.
So today we’re having Kristina Modares and Stephanie Douglass, founders of Open House Austin, on the show to talk about the power of real estate when it comes to designing the life you dream of.
They created Open House after seeing a gap in the market and realizing how scary and uncertain it was for people who are buying a home, or looking into real estate from an investment perspective. So they created Open House to teach people about how to get started in real estate - whether buying their 1st home or breaking into real estate from a place of business - to guide people and take the overwhelm out of the process.
I’m excited to have them on to talk about how we can learn more about how to use real estate as a way to diversify income streams and what they’re doing that works!
In this episode, We’re chatting about:
Who is real estate investing for?
Everyone!
Anyone who is looking to add another stream of income into their life can benefit from investing in real estate.
Our biggest dream for people is to set up an investment that at least covers their mortgage. That’s a huge savings opportunity and you can then put more money toward your business, other investments, debt, etc.
How to House Hack and cover your own mortgage
The sneaky duplex strategy: block off a part of your home and make it into a duplex that you can rent out.
Add an ADU (like a tiny home!) to your backyard: this is great if you don’t want to have anyone else living in your home. You can rent this on AirBnb and easily cover your mortgage payment plus additional income!
The power of real estate
The government wants buyers in the market, so they try to make this very accessible.
You can purchase a $400,000 home with just a 3% down payment ($12,000). This means that with $12,000, you can start a wildly profitable business.
AirBnb vs. long-term renters: Is one better?
Both options are great! It really just comes down to your situation and preferences.
If you want to be able to control which days your space is being used, AirBnb might be the better option. Short term rentals also have a much higher income potential.
The downside to an Airbnb is that the turnover is obviously a lot higher, so there’s a lot more management, and therefore time commitment and expenses, involved.
You can utilize both plans depending on your season of life, too. Nothing has to be set in stone.
PSA: Make sure you check out the licensing laws in your state before you get started with either options!
Where should we start?
The first step you should take is setting goals: Why do you want to start investing in real estate? What do you hope to get out of it? What are your long term plans with it? The answers to these questions will help guide your strategy.
Then, start to educate yourself. The OpenHouse podcast is a great place to start! Find others who have invested in real estate and learn from them.
Research your market(s). You don’t have to invest in your local market! You can definitely invest out of state, you’ll just have to be willing to hire a team to help you manage it.
It’s OKAY to feel overwhelmed at first! There is SO much information about this. Take it one step at a time.
Resources from this episode:
Learn more from Kristina and Stephanie
Connect with Open House Austin on Instagram
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