Austin Deal of the Week: Long/Short-Term Rental Opportunity

Before we get started, if you missed last week’s Austin Deal of the Week, here is an update:

Although that property was sitting for over 160 days… just a few hours after we posted our Deal of the Week it is now Pending.



Alright, let’s get down to business and cut through the fluff. We’re looking at a property at 5424 Walnut Grove in Austin.

The basics:

  • 3 bed | 2 bath | 1,271 SqFt
  • Went from $395,000 to $360,000 then from $382,500 to $340,000
  • Generates around $3,000 a month from its use as a short/long-term rental

The listing’s photos are amateur at best, so the property might actually be more appealing in person. Despite being only 1,271 square feet, the home’s layout is decent and even has some modern updates making it move-in ready.

Location Benefits

Found in the 78744 zip code, the property is located just north of Onion Creek and near the Jimmy Clay Golf Course—a municipal course open to the public and noted for its quality. The area is close to key Austin attractions and infrastructure such as downtown, the airport, Tesla, and the Circuit of the Americas. 

Comparative Market Analysis

The most recent comparable sale is a slightly larger and better-upgraded home that closed at $350,500, equating to about $236 per square foot. Considering this, a strategic starting offer for 5424 Walnut Grove Drive would be around $300,000, aligning with the lower end of the market scale at $236 per square foot, with room to negotiate up to about $330,000 or $267 per square foot.

Investment Potential

“This property represents a unique investment opportunity, especially for those looking to break into the Airbnb market without breaking the bank,” explains a local real estate expert. “Its price point, combined with rental income potential and location, makes it particularly appealing.”

Although the listing’s ‘as-is’ tag might initially seem scary, it’s important to remember that banks(when financing) might require certain property standards which could force the seller to make necessary improvements. This condition could work in a buyer’s favor during negotiations.

So, Here’s the Deal: In a desirable location and with the possibility of becoming an Airbnb hotspot, this property presents a flexible option for a variety of buyers. Don’t forget the history of price reductions that may suggest that the sellers are motivated and potentially open to lower offers.

Bottom Line: If the property checks out structurally and meets the necessary standards during a thorough inspection, starting with a competitive but reasonable offer could secure you a valuable asset in one of Austin’s up-and-coming neighborhoods. Always remember, the terms of the sale and the final deal can sway significantly based on negotiation, making this property a potential steal for an informed and well represented buyer.

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Additional photos

Recommended Realtor®

Amy Seely

Founder, Broker, CODA, Realtor®

Amy Seely, a top Austin real estate broker, excels in the local market with 50-75 personal sales and over 200 team sales annually. Honored by the Austin Business Journal and with the Platinum Top 50 award, her commitment to excellence, clear communication, and personalized client service has built a referral-based business. Trust Amy for unparalleled real estate expertise in Austin.

John Steele

Realtor® at The Seely Group

With a passion for helping people and a keen eye for detail, John excels in guiding families through the pivotal moments of buying or selling a home. Specializing in strategies that make your property stand out, including complimentary staging and pre-inspections, he ensures you get the best value in your real estate journey.

Crystal Kilpatrick

Realtor® at Crystal Kilpatrick Group, Keller Williams Luxury International

From the first time you meet Crystal, you will feel at ease with her professional and personable working style and feel confident in her ability to represent your best interests throughout the real estate transaction. Crystal is committed in both time and effort to take you from the beginning to the end of the process with attention to every detail. Working with her, you can expect dependability and honesty with the highest standard of integrity!

Listing description

Property has been slashed for an as-is sale. This is a great home. Over $100,000 in upgrades. Ready for immediate move in & use as a short/long-term rental (as owner did) earning over $3,000 a mo, while its value grows. An incredible value, great investment, nice neighbors, no HOA & quick easy access! Don’t miss out on this exceptional property! Fairway Ridge, is a great neighborhood tucked away in southeast Austin; offering a stylish, well-built home on a hill in a partial cul-de-sac; serene atmosphere & unbeatable convenience. 6 miles from downtown & the Airport, 4 miles to McKinney Falls, w/nearby bus stops, hike/bike paths, parks & golf courses. Walk 1-quiet block to Dove Springs Park with a public pool, recreation center, playground, sports fields, trails. Onion Creek Greenbelt, Soccer Complex & Dog Park are nearby, as are Independence, Meanwhile & Pinthouse Breweries, & Radio East, all offering live music & other events. Circuit of the Americas racetrack & event center is a quick 10-miles away, with big concerts, Formula One, MotoGP, NASCAR & other big events. Home improvements include remodeled master bath, featuring deep soaking tub, red penny & white tile work, new sinks & cabinets, w/connected large walk-in closet. New 3-ply 30-year roof installed Dec. 2018. Big backyard has a beautiful oak tree & six clumping (non-spreading) Emerald Bamboo plants ($2,500) planted in ’19; they are the most freeze resistant, & resilient to drought. A new $8,500 high-capacity HVAC system w/ extra attic insulation, added in ’21. In ’22 rain gutters were added, new plank flooring & water heater installed, interior walls painted & kitchen remodeled, w/new appliances, granite countertops, sinks & stove. Attached 2-car garage has a garage door opener & access to the large attic w/ ample additional storage. Your new home combines style, comfort & convenience; a steady investment & an idyllic retreat in SE Austin.

Listed by:

Kevin Phelps (512) 825-8393
Phelps Properties (512) 825-8393
Source: Unlock MLS,MLS#: 8957096

Facts & features


Bedrooms & bathrooms
  • Bedrooms: 3
  • Bathrooms: 3
  • Full bathrooms: 2
  • 1/2 bathrooms: 1
  • Main level bedrooms: 3
  • Flooring: Wood
  • Heating features: Natural Gas
  • Cooling features: Central Air
  • Appliances included: Built-In Oven(s), Dishwasher, Disposal, Cooktop Gas, Microwave, Oven, Self Cleaning Oven, Water Heater-Gas
Interior features
  • Window features: Skylight
  • Interior features: Breakfast Bar, Kitchen Island, Pantry, Primary Bedroom on Main
Other interior features
  • Total interior livable area: 2,250 sqft
  • Total number of fireplaces: 1
  • Fireplace features: Family Room, Gas Log


  • Total spaces: 2
  • Parking features: Attached, Garage
  • Garage spaces: 2
  • Covered spaces: 2
  • Accessibility features: None
  • Levels: One
  • Stories: 1
  • Private pool: Yes
  • Pool features: In Ground, Waterfall
  • Spa features: None
  • Exterior features: Private Yard
  • Patio & porch details: Awning(s), Deck
  • Fencing: Fenced, Privacy
  • View description: None
  • Waterfront features: None
  • Lot size: 0.27 Acres
  • Lot features: Cul-De-Sac, Sprinkler – Automatic, Trees-Moderate
Other property information
  • Additional structures included: None
  • Parcel number: 01721504050000


Type & style
  • Home type: SingleFamily
  • Property subType: Single Family Residence
Material information
  • Foundation: Slab
  • Roof: Composition, Shingle
  • New construction: No
  • Year built: 1999

Utilities & green energy

  • Sewer information: Public Sewer
  • Water information: Public
  • Utilities for property: Internet-Cable, Natural Gas Available, Underground Utilities

Community & neighborhood

  • Community features: None
  • Region: Austin
  • Subdivision: Balcones Greene Sec 01

HOA & financial

  • Has HOA: Yes
  • HOA fee: $30 monthly
  • Services included: Common Area Maintenance
  • Association name: Balcones Greene HOA

Nearby schools

GreatSchools rating
Schools provided by the listing agent
  • ElementarySpicewood
  • MiddleCanyon Vista
  • HighWestwood
  • DistrictRound Rock ISD

Source: Unlock MLS. This data may not be complete. We recommend contacting the local school district to confirm school assignments for this home.

Data from Zillow, Unlock MLS, GreatSchools and other data sources

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