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Today, a recent college grad shares how she bought an unexpected home outside Austin, Texas, for herself and her two brothers. 

What was your home experience when you were growing up?

My parents are from Nigeria, and that’s where I grew up. When I was 5, they built the home that we lived in. 

When you moved to the U.S., did you have home ownership goals?

I knew eventually I would want to own a house. I have moved around a lot and have lived in Maryland, Florida and a couple other states. I just didn’t know I would be buying this year!

What led you to start thinking about buying?

My parents encouraged me to buy. I’m about to start grad school and I really wanted a permanent place where I could keep my stuff.

What was your search like?

The search itself was pretty quick because I had done so much research ahead of time.

What were you looking for?

All my research said multi-family was a good choice, so that is what I wanted. Ideally, I wanted to live in one side of the duplex and rent the other side to help pay the mortgage, taxes and insurance. The rental income wouldn’t cover the entire cost, but it would help. I also wanted each unit to have three bedrooms or at least two as I was planning on moving in with my two brothers, who are still in college.

How many multi-families did you see in person?

We saw five in person. One was a foreclosure that we would have to buy as is. Our Realtor, Jeni Putalavage-Ross, thought that might be risky because if we found anything significantly wrong, we wouldn’t be able to negotiate to get money to cover the fixes. Another home we could only see at one specific time, and that seemed weird. Others had units that were only 500 square feet. By the fifth one, we knew we needed to change the plan. 

What was the new plan?

It hadn’t even crossed my mind that single-family was an option, but Jeni suggested we look for a single-family house with an ADU. Since the income of an ADU is less than what half a duplex would bring in, that dropped my price max from $450,000 to $425,000.

How many single family homes did you see in person?

The same amount: five. 

How did you know this was the one?

This one ticked the boxes for us. It has three bedrooms and an ADU. It’s in Kyle, which is about 45 minutes from Austin outside of rush hour, but it’s significantly cheaper and it has outdoor space. My mom kept pushing for the homes with a garden, and I realized she was right. It’s nice to have an outdoor space.

What offer did you make?

It was a reverse offer, which is where the seller makes an offer. They said if we could do $392,000, they would accept. 

Did you make any other offers?

Yes, we put in an offer on a house that was $450,000, but I couldn’t qualify for that. The max we could do was $425,000 and they wouldn’t accept that.

What kind of loan did you use?

We are doing a conventional loan with 7% down. We planned on doing FHA with 10% but when I learned I could do conventional with the cash I had, I wanted to do that because it removes the private mortgage insurance (PMI). 

Where did the down payment come from?

My parents gave me some money to add to the down payment, but the majority of it came from my own savings. I am a meticulous planner and  have been saving for three years.

What’s the projected income from the ADU?

ADUs in Kyle rent for anywhere between $900 and $1,400. I am being conservative and am planning to rent for $1,100.

What is the commute like to Austin?

My commute to work is between 45 minutes and an hour and 20 minutes, depending on what time I leave—but my work is hybrid and I only have to go into the office twice a month. I wouldn’t want to do that drive every day.

What’s it like living in Kyle?

The city is still very up and coming, but it has its own identity with small-town charm. They have their own festivals, like the Pie in the Sky Festival. Austin is expensive, so I think more people will be willing to move to the outer areas. I found out after we bought that there is so much development happening in Kyle.

What do you love most about your home?

Having a place to keep my things is important. There’s something so nice about having a place that is your own. I hope to stay here for five years, maybe closer to six. When I do decide to sell, I imagine the value will have gone up. I can’t think of any downside to this house.