Cashflow in Austin area?

20 Replies

Is it possible to find reasonably price cash-flow properties in the greater Austin area? I know that Austin city proper is quite hot right now, but are the suburbs any better? Anyone have luck cash flowing in Round Rock, Pflugerville, Leander, Cedar Park, Georgetown? What about south towards Kyle, Buda, San Marcos? 

I've been looking out of state (Ohio, Atlanta, Baltimore, Milwaukee, Chicago, Indianapolis) but if I can find good cash-flow in my backyard that would be great. Thoughts?

If you are in Texas: I would try buy-hold in your own neck of the woods.

Hi Jaclyn,

I have a couple of Round Rock properties cashflowing nicely. You might also try San Antonio. I have one there as well. PM me for details.

Regards,

Dan

I've got a nice cash flowing SFR southeast, near the airport. 78725.

@Jon Klaus  

Thanks Jon, I hadn't even thought about that area. When did you acquire that property?

@Jaclyn B. let me know if you need any help in the Indianapolis area.

Originally posted by @Jaclyn B. :

@Jon Klaus 

Thanks Jon, I hadn't even thought about that area. When did you acquire that property?

 18 months ago. 

Hi @Jaclyn B.

You can certainly get cash flow in Austin. It just depends on how much cash flow and ROI you're looking for. The big plus for Austin is a booming economy and job growth. The downside is that TX has some of the highest property taxes and homeowners insurance rates in the country that eat up alot of your cash flow. If you want to look outside of your hometown, you can do much better in the Midwest like Indianapolis and Kansas City. I have a report on how to invest out of state and just did a webinar on the topic last week. I'd be happy to share both with you if you want.

Mike

@ Dan N I live in Round Rock. How can I contact you?

I have a marketing partner from Austin who is telling me that people seem to be currently overpaying for properties in Austin and this is making hard to find good deals.

Hi @Mike D'Arrigo -

I live in the Austin area, but think the markets are potentially better for newbies outside of this very competitive city.  Would love to see your report & webinar discussing out-of-state investing.

I have and still find nice positive cash flow properties in Cedar Park and Leander.  I also like the potential for appreciation there over other areas of the country based off of job and population growth.  Feel free to contact me anytime and I can send you properties.

I agree with @Dan Burstain .  You If cashflow is your main objective then you can still get that in the far north and south areas (Cedar Park/Leandar/Round Rock to the north and Kyle Buda to the south).   Cashflow might be a little bit less than some areas but the economy is booming and should continue to do this for some time.   As we've seen in the past, when other areas fall apart or raise their taxes...as a lot of places are doing because of overextension on social programs people and companies move to places like texas because of no state income taxes.  Some reasons Austin is so popular because of the huge tech sector, the excellent job market, and because it has such a great quality of life compared to other cities (Dallas, Houston, San Antonio, etc)  

Good info, @Dan Burstain  and @Scott Hearne!

Just curious:  do you see the positive cash flow and good appreciation only on single-family, or also on multi-family?  I like the idea of multi-family, but don't see a ton of options in CP/Leander.  Sounds like I do need to open up my search to RR as well and work the numbers a bit more...

That is true. I am mainly showing my clients SFR's in Cedar Park / Leander. There are few multi-family opportunities there but the ones that are there do cash flow nicely. RR would have more multi-family and I can send you those as well.

Hi @Karen Morgan

You can see some good cashflow options in both multi family and in single family...For individual units in Austin it's pretty cutthroat with pretty high prices and/or very fast sales prices and competition among buyers.  However, you can find some mf deals if you can invest in larger deals.  For Instance, there is a group of six duplexes that just came on the market in a good rental area in SW Austin that is listed for $165k each and are leasing for $850 per door or $1700 each duplex.  Obviously you'd have to deduct expenses and vacancy and you can (im sure) netotiate that price down.  But, if you have the means to buy these (all have to be sold together) then that's a pretty good deal I think.  

You can, but it's getting harder. Why not go south to San Antonio? I am doing quite well there on cap rate as opposed to my austin houses. 

@Account Closed -thanks for the tip!  I'll start looking down in SA.  That makes sense to me...we tend to go there for weekend getaways.  I can see why the market would be open for rental purchases.

I'll be moving to Austin in the next two months and I'm looking to invest locally in reasonably priced cash flowing properties. Are there deals to be found on the MLS with the market as hot as it is?

I want to say the hotter the market, the less likely there is a good deal on the MLS, but good deals are relative. Hundreds of houses sell every month and I am sure all those buyers think they got a good deal. I will say, if you get to know the market then you increase your ability to spot a deal and your courage to act on it.

Investing in Austin means that you have to be creative and make your own deals. You can cashflow if you do the rehab. I focus on central Austin which is exponentially harder to cash flow in. I have a lot of unorthodoxed deal types of opportunities I monitor to see if I can put a deal together. 

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