Austin new construction SFRs good deal?

2 Replies

Hello. A colleague and I are looking to partner up in buying 2 or more of the properties in this community (https://rsicommunities.com/find-new-homes/communities/42/prado/welcome) with 25% down and turning them into rentals. We intend to negotiate like hell on price since we intend to buy 3 of them. Based on discussion with a potential property manager, we could cash flow $300-$400/month per unit on a 30 yr fixed or break even on a 15 yr note. With Austin prices, looking more like 0.7% rent/price ratio; but considering that’s its new, maintenance and cap-ex should be minimal. My partner and I intend to “buy & hold” at least for 10 years and go for the 15 yr note. Could someone please poke some holes in my plan & thinking? My biggest concern is the inevitable correction, especially in Austin. Any Austin RE investors out there that could chime in ? Thanks.

A 30 year loan will give you more breathing room and you still have the option of paying it off in 15 years.

Originally posted by @Merv Screeton :

A 30 year loan will give you more breathing room and you still have the option of paying it off in 15 years.

Very valid point, especially if things go south in Austin. 

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