I'm looking to get started with some fix and flips in the Central Texas area. I live in Austin but I'm looking to start with something a little slower paced than what's happening in our city right now. I'd also like to see some things at lower price point for my first few deals.
Anybody doing successful fix and flips in the Central Texas area, but not in Austin proper? I've been doing a lot of research and education, but I thought I'd see what the community had to say. I'd love to get some leads on a solid/stable market in the area where I could get a few successes under my belt. Thanks!
I'm in Temple/Belton/Killeen area. Been flipping a few homes over the years. Lots of stability with adequate competition but the inventory is drying up. Have to be really fast to to analyze profitability and submit offers. Margins are lower now but sometimes you can find a diamond. Last couple I did was 13k and 28k net profit on sale priced homes @ 62k and 115k respectfully. I am also a real estate broker, ex home builder and developer so I know my area well.
I agree with you researching out lying markets. Austin area just to competitive and over valued. If you have the funds and know of building lots, building and reselling new construction is way to go.
What is the price these days for vanilla new construction per sqft? Last time I checked many years ago it was $60. I imagine that has at least doubled.
@Account Closed - perhaps folks more knowledgeable than me will chime in, but I believe that new construction in Austin is around $120/sqft, higher depending on how much beyond "vanilla" you wish to go.
@Matt R. new construction costs will vary by location.
Here's a recent thread discussing the costs in different areas: https://www.biggerpockets.com/forums/44/topics/137594-whats-you--sqft-to-build
Lynn Currie, Starling Development and Homes | http://www.lynncurriebuilds.com
@Barry Ratliff , thanks for that specific info in your area! Glad to know I'm headed in the right direction though. I don't think I'm quite ready to do new construction but I'll keep that in mind for the future.
@Gary Ennis , thanks for the info on the Masterminds meeting. I'll see if I can come sometime in the next few weeks.
I flew out there and spent a week in April looking for buy and holds. I was all over the city from Round Rock, to Kyle, and Budha, and all other directions. The closest I came to making an offer was a small 3/2 that was 12 years old in Pflugerville. I've only paid 30,000 in Atlanta for houses nicer than the Pflugerville house, and that thing went quick at 140,000 (the Pflugerville house). Tons of competition in Austin and San Antonio right now that seems to really be driving up prices to the point where the numbers just won't work. I did find one little subdivision in East Austin building new homes at reasonable prices. Small 3/2's around 130's to 140's. But the school district and area there weren't the best. Also, stay away from that large real estate guru group out there, you probably know who that is ;) Good luck.
@Thomas Williamson , thanks for your input! I'm definitely sensing that price point and I'd like to get below that in the beginning. I'm not sure what RE guru group you mean, but I don't tend to follow the masses if you catch my drift :-) Thanks again for the info!
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