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Buying & Selling Real Estate

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Would you recommend buying an investment property in Austin area now

Posted Oct 4 2023, 07:06

I am looking at buying an investment property in the Austin area. It is not cash flow positive at this time due to high interest rates and property taxes. I am basically counting on the values appreciating over the next 2-3 years and possibly refinancing it later. Does this strategy make sense? Should I rather go look for other cash flow positive alternatives at this time? TIA

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Oct 5 2023, 06:16

The biggest opportunity in Austin, Texas is buying significantly under market value. Buyers have pretty much dried up and have the power currently. You may not be able to cash flow with the current interest rates, but when they drop, you will see it. Buying for appreciation is never a good idea.

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Joe Scaparra
  • Investor
  • Austin, TX
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Joe Scaparra
  • Investor
  • Austin, TX
Replied Oct 5 2023, 08:07

There are very few, good buying opportunities in the Austin metro-plex for pure investors.  If you live there and are currently renting, then there still is a pathway to house hack say a duplex and better your situation.  However, if you have money and are looking to buy investment property there are many, many better places to invest than Austin.  Cheers!

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David Sandvig
  • Real Estate Agent
  • Austin, TX
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David Sandvig
  • Real Estate Agent
  • Austin, TX
Replied Oct 5 2023, 08:42

I'm a big believer we should invest with a 5-10 year outlook.  I still think Austin is a great investment on a 5-10 year basis.  I'm pretty neutral on the local market outlook for the next year.  Mentally it's hard to buy into a dipping market, but I think that's where a lot of money is made longterm.  I'm also not super optimistic on rents increasing over the next year or two though, especially if we go into a recession.

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Mike Cossette
  • Real Estate Broker
  • Austin, TX
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Mike Cossette
  • Real Estate Broker
  • Austin, TX
Replied Oct 6 2023, 07:37

The Suburban markets with New construction offering decent builder buy-down rates 5s %, and selling completed inventory homes to investors is an opportunity we’re pointing investors to, as well as Duplexes outside the city, that’s where we’re finding some of the best options to get closest to positive cashflow with 20/25% down. This window of opportunity in Austin May end up being short lived, the sidelined buyer demand has been stacking up and the influx of population is never ending. Every small relief in rates triggers a rush of buyer traffic, I would take advantage of this fall and winter before the cyclical spring market rush.  

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Joseph Amin
  • Real Estate Agent
  • Cape Coral
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Joseph Amin
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  • Cape Coral
Replied Oct 9 2023, 07:35

A lot of my investors believe that Austin like other Texas cities will do well in the long run. When you researched markets like Austin las Vegas Miami, those markets have higher land cost and are more cyclical in nature tend to have larger price swings compared to regions with lower land costs. If your'e looking for purely long term appreciation you will likely do great in these markets but if you're looking to have high cash flow and avoid a potential major pricing downturn. Many of our investors choose areas that have low land cost and steady population growth. @Rishika Garimella

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Replied Oct 9 2023, 09:05
Quote from @Joe Scaparra:

There are very few, good buying opportunities in the Austin metro-plex for pure investors.  If you live there and are currently renting, then there still is a pathway to house hack say a duplex and better your situation.  However, if you have money and are looking to buy investment property there are many, many better places to invest than Austin.  Cheers!


 I'm currently looking around taylor, manor, hutto... for an investment property. What areas do you recommend? as better places than austin. 

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Joe Scaparra
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Joe Scaparra
  • Investor
  • Austin, TX
Replied Oct 9 2023, 09:52

@Abiola Bakare, Hi!  It is difficult to give you sound advice without knowing much about you.  I would recommend you use the profile page BP.  It will allow you to tell everyone a little about yourself, your real estate experience, your Goals and Why you invest in real estate.  If you need an example, go to my profile page.

With that knowledge, I can then give you better direction as to where, what and how to invest with real estate. I don't have a good understanding of your desires or what you are seeking. What are your priorities in terms of capital appreciation vs cash flow. What type of properties are you seeking; SFH, Condos, Townhomes, Duplexes, 3/4 plex, ect.

I certainly have my bias and would love to sit down with you if you are in the Austin area or possibly a phone call. Usually my time spent with newbies last a minimum of 1-2 hours on our first meeting (either in person or on the phone). I mentor several people, mostly those who are just starting out. It is most important that you have a clear understanding of the type property and the strategy you want to use (FLIP, LONG TERM BUY AND HOLD, STR, MTR).

My specialty is helping people come up with a goal and their why.  I am a CASH FLOW priority investor.   My ultimate focus is not how can I get you rich quickly but rather, wealthy over time.  I am 68 yrs old (semi-retired).  My end game is to show you a path to financial independence, whether that be at 45 yrs old or 70 yr old.  If this is something that interest you, then I think I could be a good resource for you. 

Lastly and before you think I am going to sell you a training program that cost thousands of dollars.  I am not!!!  Nor am I going to try and make a commission selling you real estate or lending you money.  I am neither a real estate agent or mortgage lender.  I have no conflict of interest.  This gives me the opportunity to tell it like I see it.  Some of my advice you might quickly embrace, some of it you might not want to hear it........I don't know but if you want to build wealth, my advice might be helpful.  

My advice comes with the cost of a cup of coffee or lunch.  Unfortunately, usually when people get something for free they don't value it.  I like providing some guidance, it is up to you to embrace it or not.   Cheers.

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Replied Oct 9 2023, 13:34

Thanks for the detailed reply, Joe. I realize I added no context. I am in the Austin area and I'll update my profile page. I am a newbie to RE and just my own personal home and some land. My goal is long-term investments for cash flow and to grow a portfolio of RE over time. 

I would love to connect/learn more and buy you coffee/lunch. I'll message you privately.

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Replied Oct 9 2023, 13:35
Quote from @Joe Scaparra:

@Abiola Bakare, Hi!  It is difficult to give you sound advice without knowing much about you.  I would recommend you use the profile page BP.  It will allow you to tell everyone a little about yourself, your real estate experience, your Goals and Why you invest in real estate.  If you need an example, go to my profile page.

With that knowledge, I can then give you better direction as to where, what and how to invest with real estate. I don't have a good understanding of your desires or what you are seeking. What are your priorities in terms of capital appreciation vs cash flow. What type of properties are you seeking; SFH, Condos, Townhomes, Duplexes, 3/4 plex, ect.

I certainly have my bias and would love to sit down with you if you are in the Austin area or possibly a phone call. Usually my time spent with newbies last a minimum of 1-2 hours on our first meeting (either in person or on the phone). I mentor several people, mostly those who are just starting out. It is most important that you have a clear understanding of the type property and the strategy you want to use (FLIP, LONG TERM BUY AND HOLD, STR, MTR).

My specialty is helping people come up with a goal and their why.  I am a CASH FLOW priority investor.   My ultimate focus is not how can I get you rich quickly but rather, wealthy over time.  I am 68 yrs old (semi-retired).  My end game is to show you a path to financial independence, whether that be at 45 yrs old or 70 yr old.  If this is something that interest you, then I think I could be a good resource for you. 

Lastly and before you think I am going to sell you a training program that cost thousands of dollars.  I am not!!!  Nor am I going to try and make a commission selling you real estate or lending you money.  I am neither a real estate agent or mortgage lender.  I have no conflict of interest.  This gives me the opportunity to tell it like I see it.  Some of my advice you might quickly embrace, some of it you might not want to hear it........I don't know but if you want to build wealth, my advice might be helpful.  

My advice comes with the cost of a cup of coffee or lunch.  Unfortunately, usually when people get something for free they don't value it.  I like providing some guidance, it is up to you to embrace it or not.   Cheers.

Thanks for the detailed reply, Joe. I realize I added no context. I am in the Austin area and I'll update my profile page. I am a newbie to RE and just my own personal home and some land. My goal is long-term investments for cash flow and to grow a portfolio of RE over time.

I would love to connect/learn more and buy you coffee/lunch. I'll message you privately.

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Replied Oct 9 2023, 14:12

Thank you all for your thoughts on this! I will shop around for homes based on these inputs.

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Jackie Everett
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Jackie Everett
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Replied Dec 13 2023, 05:43

I am not sure what tools you are using for your cash flow projections but it's possible to have a property that does not cash flow year 1 but will in year 2 or 3 and so on based on average historical appreciation in Austin TX.  Really it's up to you if you believe other markets work better for your goals. I hope this is value add. Thanks.