What are good areas with low vacancy rates for an investment in austin? Unfamiliar with the area so asking my friends on blind. Of course, i can do all research online. But nothing beats the input from friends on blind :)
Austin is not a cash flow positive rental investment market at current interest rates, especially with the property tax rates. Unless you’re paying all cash of course ;)
Depends on the price but most cash. What areas do you suggest then?
Gatekeeping at its finest.
Don't come plrase
+1
Texas in general is considered a difficult state to be a successful landlord. The high property taxes act as downward pressure on profitability. That being said my advice in general is that being a landlord, the profitability comes from the appreciation of the property itself and not from the monthly rental income. Your goal in renting the property is to secure good long term tenants which will keep costs down that can ideally cover the mortgage. Trying to maximize monthly rental income can easily backfire as that can lead to higher tenant turnover thereby increasing the risk of getting a bad tenant who can destroy years worth of equity appreciation via property damage. In addition I highly recommend doing your own rental repair and handiness in general. This serves two purposes, the first it keeps your real maintenance costs down, second it serves as a reasonable mechanism for you to keep and maintain your rental property. Fixing things early helps avoid costly mistakes later on. Finally, this is probably one of the worst housing markets to actually buy a property. With rates as high as they are with property prices still high, it would be hard to justify purchasing in this market.
Property prices are probably not going down from here, the bottom was in last fall
Thanks for all details. This helps a lot. I am not worried about interest rate since its mainly cash. What are good areas for high potential of appreciation?
The northwest , leander and ahead is decent.
What is good there?
OP, I am a sales agent in Austin. You have mentioned that this will be a cash investment, so let's put COC ROI aside, that isn't as important for you. Let's also put the cap rates aside for a moment. What's most important for you is appreciation, rent to price ratio. There are a few factors that will given that: Small pockets of low supply and high demand, usually driven by schools and commute to tech offices Square footage of the home Age, to reduce OpEx of the home Hysteresis of price value movement Happy to chat, and help you conduct your research if you are interested.
Wanna hoard some houses? Or just looking for extra income?
Extra income