Where to invest near Austin, TX?

Question

Aaron Gordy · Answer

Bob,

One property is in an stellar location and its really easy to rent. One only has to let folks know that its available and there are multiple applications on it. The other one is in the suburbs and the occupancy is a bit lower.

Aaron

Account Closed · Answer

Why are the cap rates so different?

Aaron Gordy · Answer

Good morning, David

I can help you as well. I run a property management company and deal primarily with investors. I know multifamily really well and am currently working on a couple of deals presently valued at around $900k with cap rates around mid 4%s and another one around $1.8k with a cap rate around 7%. I started off running an apartment locating company over a decade ago in Austin and so I know the rental business very very well. Over the years folks started reaching out to me to help them with purchases and property management. And so here I am. The more complicated the deal the more fun it is for me. Please let me know if I can be of assistance. Thank you!

Aaron

Dan Burstain · Answer

Hi David,

I am an investment Realtor here in Austin and would be happy to provide you any information you like from current investment opportunities to thoughts on the market. I have many Bigger Pockets clients and also give BP members commission discounts or rebates on multiple property transactions. Let me know if I can help you in any way with your Austin area property. I also can help you with property management, lending, out of state sales, whatever you need. If I don't have the answer, I have a ton of contacts that do. Happy to help you build your real estate portfolio as I have done for many on this site. Look forward to hearing from you. Thanks!

Joel Owens · Answer

Hi David,

Austin is very compressed right now. You would need to define annual cash flow off of down payment to see if you are realistic.

I know Austin but on the commercial retail side. A lot of my clients the multifamily is overpriced right now. We are buying up retail simply because we can land better cap rates. Multifamily sellers and brokers are pushing that there is no vacancy, no deferred maintenance, and strong annual rent growth.

Over the history of multifamily the rent growth being quoted and low vacancy is not sustainable. There will come a time in future years where supply of units will outpace demand. Lot's of 200 and 300 unit complexes going up all across the country. As long as you can get a good cap rate and the underwriting for performance is realistic then multifamily can still make sense. I am just not as bullish on it from where it was in the cycle 3 to 4 years ago for value. Seems it's topped out in a lot of markets currently.

Where to invest near Austin, TX?

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