Greater Austin area or out of state?

8 Replies

I originally wanted to invest in Austin, TX being that I'm from and familiar with the area but I'm beginning to think it will be too competitive for a beginner with little cash ( I plan to save up 45 to 60k in the next 3 years and obtain my first duplex with an fha loan and maybe 20% down on another). So what do you think about surrounding areas like Pflugerville, manor, elgin, bastrop, Buda, San Marcos,  and Kyle Texas? I'm also thinking of reading up on outer state properties but afraid to risk failing because I'm working too hard and don't want to waist 3 years but it's always been my dream to be a landlord. I just want to make my dreams come true but didn't know how lucrative and competitive this field was until I started researching for a plan to make my dreams a reality What do yo think because I do know think there will be anything left I can afford when I'm ready.

The way a lot of people have sucess is: buy a modest single family in a good school district...I like masterplanned communities with trails, parks and schools....Or a duplex...to live in.  After a bit of time start looking for a new place to live (first save up a down payment and a savings reserve for the rental) and rent out the first.  i say modest because it is scary to have vacancies, especially if you are low on cash, and smaller mortgage payments are just easier to pay.  And a smaller mortgage allows you to save for the next property.  I am not crazy about duplexes because you get nicer tenants in a sf and when you sell 99% time it will be to investors....sf houses can be dolled up to fetch the highest price to a family but investors normally aren't swayed by emotion.  

Texas had over 20,000 seller financing deals last year to lead the nation in that category. You will definitely be able to find something in state. Good luck with your search.

@Drae C.  There will always be market cycles. Austin is at its peak right now. The market will slow down and there will be another buyers market. Patience is key to real estate investing. 

That said, if you are planning to owner occupy one side of a duplex, you are better off doing that then renting an apartment. Especially with these low interest rates. And there are still plenty of opportunities out there. You just have to be ready to make a quick decision and pull the trigger as soon as you see it. 

Medium av finalJeff Clawson, AustinVestors | 512‑814‑6374 | http://www.AustinVestors.com

Build your network @Drae C.  The market is very competitive so finding the deals before they hit the public eye will help you tremendously. 

http://www.meetup.com

I recommend going to that link and picking a few meetings to be a regular at. You will learn a ton and meet several like minded people that may be able help you out. 

Also, get on as many wholesalers buyers lists as you can.

I actually have that app and plan on enjoying all my interest with the like minded people there but regarding the rei club what will I learn when I show up with no money? I'm guessing I will meet my future realtor and contractor for renovations there? telling them I plan to invest in 3 years and will be in need of a duplex? What will happen when I show up? I don't want to start with a single family property because it will take so long to pay off. With duplexes I can have people paying the mortgage for me while I work full time and put as much income as possible to pay off the property and use it as a line of credit to get another snowballing my way to 10k a month ( dream goal) as I own properties out right. I believe I'll eventually go from taking 3 years for a down payment to having it in a month. I'm 24 now and shooting to reach financial freedom and goal of 10k by 32.

@Matt R.

"Texas had over 20,000 seller financing deals last year to lead the nation in that category. You will definitely be able to find something in state. Good luck with your search."

I'm interested in learning where one can find out information on how many seller finance deals are done within each region of the country.   Could you please share where you reference this information?   Thanks Matt.

http://www.biggerpockets.com/forums/311/topics/161...

Originally posted by @Vince Beusan :

@Matt Rosas

"Texas had over 20,000 seller financing deals last year to lead the nation in that category. You will definitely be able to find something in state. Good luck with your search."

I'm interested in learning where one can find out information on how many seller finance deals are done within each region of the country.   Could you please share where you reference this information?   Thanks Matt.

I put the link in the older post above .thanks

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