Buy and hold in Austin TX and the 50% rule and 2% rule

[Judit B.]

Hello,

I am curious, has anyone been able to buy rental property in Austin TX in a decent area of town that would meet the 50% rule and especially the 2% rule? I am finding it very hard to get properties that meet even the 1% in areas I am not afraid to go to. I am looking to buy for long term, buy and hold. I am finding that even fixer uppers, after spending money on fixing, will not meet this criteria, or at least I have not been able to find any. Almost everything that is worth buying sells in hours with multiple offers. Curious if others have found this to be different in the Austin area.

Thank you

BL

[Robert Piller]

I agree with all the posts about the lack of 2% rule in Austin.  

Too many newbie investors here are banking on appreciation or just trying to do a deal in Austin. I've seen too many people opting at "deals" under 1%--which leaves very little margin for vacancies, fix up, maintenance, capex, and unforeseen issues.  

We have had luck about 70-90 miles in all directions getting closer to 2% rule--Killeen and Copperas Cove for example...but have seen many investors rushing there--driving up purchase price and reducing ROI. It is getting hard to find 2% deals even out there now.

The Austin market has changed so much in the past 4 years that we have been concentrating on fix and flips and new builds until the buy and hold market stabilizes.

I've been doing this for 30+ years and I'll wait it out and buy more SFR once things come back to "normal". It always does. if you are a patient investor.