Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
Austin is insane right now. We finally locked up another deal today. We were one of many offers and we were below the high bid. Ours was selected because we closed another 2 projects right across the street on Crest.
Austin, TX · Member since 2012 · 17 posts · 4 votes
13y
I own ten houses in Austin and get multiple letters from investors everyday!! I have friends trying to buy but all props have multiple offers and go over asking price! It is certainly hot! I think it will continue to go up too based on job creation and popularity...
I think I may need to look at San Antonio, Houston, Dallas, etc for new deals?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
We're sitting on a lot of lot inventory right now waiting for permits or where projects are in process. We should continue to get lift from the shortage because the city isn't letting anything out of permitting right now. For those that live in Austin make sure to complain to your representatives about this craziness.
Real Estate Investor · New York, NY · Member since 2012 · 210 posts · 15 votes
13y
Bryan Hancock
How much inventory do you think is stuck in permitting? I see Austin's permits are through the roof.. has me nervous there may be a lot of supply hitting in 2013-15.
Also you seem to be the expert.. which zipcodes are the cupsy zipcodes to focus on at this point... everything has run up so much!
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
I don't think there is any risk of a deluge of permits hitting at once. I have confidence that the city will continue to be inept and the permitting will get more and more backlogged while they bury their heads in the sand and/or try to pin the risk on the architects with their "shortcut process."
You could probably look at the permits issued by month and multiply by about 4 or so. The city is backlogged about 4 months right now and I expect the queue to continue increasing.
I'm not sure what would make something *cupsy* for you, but these are the zip codes I like the best for new construction or development:
I own product in 1, 2, and 4 right now. 78723 is better for flippers if you want to compete on thin margins. 78721 is still a bit risky, but you can find good stuff just east of Airport. If you go east more then things get dicier, but inventory is currently so low you should be fine. If the market turns you'd be better served being in 78704 or 78702 given the proximity to downtown. Good luck finding anything at the right price though. Expect to only win 5% of so of what you bid on.
78745 is an up-and-coming zip code and a lot of new development is happening there. The exits are a bit lower, but the dirt is cheaper too.
78722 and 78723 I am less familiar with, but I know people are doing well near the old airport. These areas are inferior to 02 and 04 IMO, but there are still very viable projects there as there are in most zip codes with a 20-mile radius of downtown.
Austin, TX · Member since 2012 · 17 posts · 4 votes
13y
@jon klaus
I am not getting any true blue offers. It is not my intent to sell but there appear to be a ton of investors and buyers right now. My props is 78704 get quite a bit of attention and next would be 78727....
I keep reading there will be a shortage for a while.. How long do you think?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
The city woes seem to be getting marginally better right now, but there are a lot of newbies down there pissing off our architects. With the heightened interest I expect permit requests to go up and queues to lengthen. Units are being absorbed very quickly right now.
Real Estate Investor · New York, NY · Member since 2012 · 210 posts · 15 votes
13y
So what is in store for 2013 and 2014? arguably what we have seen in 2012 represents the last leg of snap-back into a strong market. Can we continue seeing +10% price increases for another 2 years?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
Most of the on-market deals we're bidding on have in excess of 10 offers. Most of what we're doing is off market of late, but we have snagged a few on market too.
Real Estate Investor · New York, NY · Member since 2012 · 210 posts · 15 votes
13y
There was a property in 78741 that was listed on MLS at $250K and did not sell in winter 2012. I negotiated direclty will seller and got him down to $230K in March -- it was a tough call, but I passed. Seller listed the same property in May at $250K, albeit with minor improvements (I peg $5K worth) and sold it for $270K. Nuts!
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
That's what 2- months of inventory will do to prices and demand. The city is really going to create a housing shortage with their incompetency. They'll soon be pounding on the "we need affordable housing" drums loudly.
Austin's average home price passed $300k for the first time ever recently. That used to be an expensive house in Austin. No mas!
#1 Williamson County, immediately north of Austin, includes Round Rock and Georgetown. The county has increased employment by 73% since 2000, the third best job growth in the country. These are good jobs, I.e. Dell is based in Round Rock.
#3 Hays County, immediately south of Austin. North of San Antonio. Includes San Marcos.