Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
12y
14k Dell employees in the Central Texas area. Dell is going private to restructure its emphasis to higher profit areas outide selling computers. Could have an impact on the area depending on how that plays out.
That said, anyone have an estimate on how much it costs to build in the area?I heard one guy say he coulld build for $80 a foot--couple years ago at a xmas party. I figure if I can buy and rehab 1200-1500 sq ft for about that much I will have gotten the lot for free. But I havent seen a deal like that in a while.
Real Estate Investor · Austin, TX · Member since 2013 · 50 posts · 6 votes
12y
I went through the "austin is hot" thread. I am so excited about the Austin and wish I had read the posts earlier.
I live in Austin. I have been investing in SFRs in Austin since 2009. I will be closing my #12 SFR in NW in a couple of weeks. All of my holdings are in NW Austin.
I am thinking to expand my portfolio into south 78745 and the east of Austin closing to downtown where I heard is very hot right now.
I am also thinking to acquire land/lot to build and sell. I heard that the construction cost is around $80/SF that seems to be pretty high, if including the land and other costs, the total cost will be easily above $110-120/SF in NW area. Considering the time, money and risks I put in, I am not sure if building new is worth it. I read some article that the average profit for a builder is less than 7% nationwide, is it true?
@Jon klaus and @Bryan Hancock, I have been following your posts, you guys have done awesome jobs in Austin. I really want to learn from you. You have been buying lots and building houses in Austin for a while. What's your profit criteria for a project? 10%? 15%? 20% or even higher? do you build single family or multi-family?
Investor · Los Angeles, CA · Member since 2013 · 231 posts · 260 votes
12y
I take an interest in urban planning and am curious as to how these Texas cities will handle population growth in their urban form.
For those of you in Austin, just curious to how you see the city growing? Suburban growth in the North or are affluent people moving closer into town. I've heard the traffic in Austin has become a fairly big problem so this may play into it.
I've never been to Houston, and it confounds me some as it seems people there really like to live far out (Sugarland, the Woodlands, etc...). I've also read that people in Houston average driving 37 miles a day, the most of any metro in the US. However, they don't seem to have the traffic issues too badly yet, due to really large highways and there doesn't seem to be all that many affluent people moving into the City (actually heard mixed things about that).
Real Estate Investor · Austin, TX · Member since 2013 · 50 posts · 6 votes
12y
The heavy traffic jam areas in Austin are the I-35 cross the downtown and the loop 1 bridge cross the town lake. The other areas are fairly good. I heard that the loop 1 upgrade construction has started.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
"You have been buying lots and building houses in Austin for a while. What's your profit criteria for a project? 10%? 15%? 20% or even higher? do you build single family or multi-family?"
Joe, I want to make $100k per door. It's getting harder. 2 of my next deals will require investments of @ $700k each.
Austin, TX · Member since 2013 · 103 posts · 19 votes
12y
@Jon Klaus It is most certainly getting harder and harder for downtown properties in Austin right now. We are doing a few new builds in that area ight now (East part of town)--but I prefer buying existing properties in Austin for faster ROI and steady cash flow.
Since the lots are so expensive, the $100K return on doors you seek seems to become a smaller and smaller profit margin.
"You have been buying lots and building houses in Austin for a while. What's your profit criteria for a project? 10%? 15%? 20% or even higher? do you build single family or multi-family?"
Joe, I want to make $100k per door. It's getting harder. 2 of my next deals will require investments of @ $700k each.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
12y
Robert is investing in some of my east Austin projects in 78702. Jon and I have done some projects together too, but there is certainly enough to keep everyone busy.
The city is trying to encourage growth east of town, but the traditional north/south growth corridors are still the most active. 78745 is pretty active right now too as it 78723.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
The Milken Institute recently released its Best-Performing Cities 2013 Report, and the Austin-Round Rock-San Marcos metropolitan statistical area ranks No. 1 among 200 large American cities.
The report focuses on where jobs are being created and sustained.
Involved In Real Estate · Austin, TX · Member since 2014 · 41 posts · 6 votes
12y
Just found this thread, and realized it's over 2 years old, and the market is just as HOT now as it was TWO years ago.
The growth here is incredible. At the lower end of the market (Under $175K), we are experiencing multiple offer situations for just about every property that hits the MLS. Finding good off market properties is a full time job, and still doesn't yield much.
As we enter the busy spring of 2014, I fully expect homes to increase in value even more, rental rates to move up, and properties to move very quickly.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
12y
Exits on projects we're developing are getting crazy right now. I am honestly considering stopping development and shifting to something else soon given the lunacy.
Exits on projects we're developing are getting crazy right now. I am honestly considering stopping development and shifting to something else soon given the lunacy.
It will be fun while it lasts ;-)
Just build and maintain your hedges, Bryan. And get more selective on deals.
Residential Real Estate Broker · Austin, TX · Member since 2014 · 146 posts · 21 votes
12y
Another example of Austin real estate being on fire...Austin is the fastest growing city in the US. Like others, I just wish our city would fix the traffic instead of buying golf courses and building billion dollar soccer complexes.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
It takes a long time to fix a traffic problem like Austin's. Also, most cities bigger than Austin have bad traffic, and more area to navigate. As an investor, you can make the problem work for you. Buy close in where people really want to be to avoid the traffic. It's expensive, but appreciation is enhanced by the traffic problems. People will pay a premium to avoid it.