Investment property in Austin?

Riverbed Technology bestsunny
Jun 7 30 Comments

Keep hearing Austin is booming. Trying to understand how accurate is this from future standpoint?

Is it too late to buy investment property in Austin and expect appreciation?
What is potential for more growth in austin and why?
How much more growth over 5 yr duration can we expect?
Which area in particular will be best for consistent rental and bit of appreciation on investment property as well?
Any referrals on realtors to talk to that have expertise with on-market focus?

Individual home (built 2000 or later) with good schooling district (7+ rating) and Millenial/family friendly, B+ category area, preferably IT segment target for a rental investment property. Less risk to loose properties value by significant margin (-20%).

Investment willing to make in $250K-$500k.

Should I be looking elsewhere than austin?

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TOP 30 Comments
  • Uber / Product chocobears
    Depends on your geographic flexibility. Best economics for rental units is in:
    Oklahoma City
    Jacksonville
    Houston

    This is based on price-rent ratios and economic growth
    Jun 7 11
    • Riverbed Technology bestsunny
      OP
      Where can I research or assess these metrics posted for better understanding plz
      Jun 7
    • Uber / Product chocobears
      You probably want to talk to a professional real estate investor and get more info on markets across the country. Jacksonville is attractive because of the expansion of their deep water port.
      OKC is attractive due to the development of new oil fields and the university.
      Houston has good growth as well (oil)

      Austin would have been great ROI five years ago as everyone else is saying.
      Jun 7
    • Uber / Product chocobears
      @ihb47 Seems like you don’t really understand the full picture of not being a trash human
      Jun 7
    • Lyft ihb47
      I respect your right to insult my character, Not really sure what it adds to the conversation.

      My comment is intended to In enlighten by forcing more thought.

      you definitively list three cities is the best, that reveals You may be missing some important knowledge.

      If we resume the markets are somewhat rational what are the reasons that different cities would have different Rates on average? It’s important to understand the reasons
      Jun 7
    • Uber / Product chocobears
      It’s entirely up to you of course, but if you don’t want to be perceived as an asshole in the world, generally you would gather context before passing judgment upon an argument or person (i.e. assuming the worst of my knowledge). Behaving this way will make you no friends in life. And how you behave in an anonymous context is just a more honest version of who you are in all contexts.

      Re: single-family rentals, I have my own method for ranking cities (based on local job market) and hopefully no one here is a big enough dingus to assume that a list of cities is the definitive almighty list without running their own projections.

      So what is the knowledge you wish to contribute? You haven’t added anything to the conversation.
      Jun 7
    • Lyft ihb47
      In the end I believe it’s you if anyone who looks like an asshole
      Jun 7
    • Google azhkys
      Lyft as a bystander my perception of how you come across is not great either based on the comments above.
      Jun 7
    • Lyft ihb47
      Mission accomplished
      Jun 7
    • Uber / Product chocobears
      Lyft, stop teasing us and unleash your secret knowledge of cap rates already!

      I don’t understand the free lunch comment.... no one said anything about freebies.
      Jun 7
    • Google / Eng QrJx75
      Again, Uber > Lyft.
      Jun 10
  • Athenahealth jRfJ36
    I don't think Austin makes sense for investment property out of state..

    For one thing the rental incomes are not very good. Better than the Bay Area maybe, but it's still a fairly expensive place to buy relative to the entire country. Secondly property taxes are very high. So you are paying income tax in CA and property tax in Texas? not sure if that makes sense.

    In recent past the parts of Austin that have seen rapid appreciation are the areas in central Austin near downtown. I really doubt that appreciation in North Austin over years has beaten the stock market in any notable way. Some on here speculate that the opening of various tech offices will change that, but I'm more skeptical. North Austin has a lot of space and is not particularly rich in amenities. I think you are probably still better off buying in areas that are currently expensive, but still doable for semi-regular people. There are various neighborhoods that you need about 500k to get in right now that I could see rising to $1 million in a few years. (Think Cherrywood, Hyde Park, Brentwood, Crestview, etc). Particularly as FANG starts to import a bunch of > $250k/yr jobs. Then neighborhoods like Zilker, Bouldin Creek, Clarksville, and Holly and probably going to move closer to absurd Bay Area prices.
    Jun 7 0
  • Microsoft shambu
    Austin was an investment opportunity five years ago I think
    Jun 7 0
  • Lyft ihb47
    Five years ago you guys would’ve really been on to something
    Jun 7 0
  • Capital One IukP56
    Cedar Park or Leander
    Jun 7 5
    • Oracle / Eng sofakinghi
      What about round rock and pflugerville?
      Jun 7
    • Riverbed Technology bestsunny
      OP
      Why please or what's happening here
      Jun 7
    • Oracle / Eng sofakinghi
      Just not far from downtown and close to the domain. Both of which are where most tech companies are locating.
      Jun 7
    • Oracle / Eng sofakinghi
      Roughly 35-45 minute drive tops to both
      Jun 7
    • Capital One IukP56
      Accessible to tech companies + good schools
      Jun 7
  • Oracle / Eng sofakinghi
    I’ve noticed that as a pretty normal thing there. Makes up for no state income taxes I guess.
    Jun 7 2
  • Apple ct.Thanos
    I would say atlanta or nc
    Jun 7 1
    • Riverbed Technology bestsunny
      OP
      What is happening in nc or Atlanta please?
      Jun 7
  • Oracle / Eng sofakinghi
    Interested too. Have been researching at getting into better markets than my local real estate.
    Jun 7 1
    • Riverbed Technology bestsunny
      OP
      Do u have any research done to share offline?
      Jun 7
  • Capital One IukP56
    Round rock is good too as it has good schools for rental. Cedar Park is really good overall but property tax will kill you .
    Jun 7 0
  • Oracle / Eng sofakinghi
    I know my local market isn’t any good. So need to diversify. Will look into the above markets.
    Jun 7 0

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