Newbie to The hot Austin market- Tips?

Question

Hi all!! Tossing some newbie ideas and a quick intro.

My ideal starting niche is SF homes in South Austin for Buy and Hold for ~225K. From my understanding Cashflow is not the name of the game in Austin, but rather appreciation. To commence I have considered getting a Real Estate sales license to gain a better understanding of the process. Local Meet ups to learn from the seasoned investors. To give y'all perspective here is a bit about me- I live in Houston, but plan to make a move to Austin in the soon. I work FT, I'm a new mom, and these things keep me motivated!!!

Tips would be very much appreciated!

Joe Scaparra · Answer

@Elizbeth Hernandez Hi, I understand the thought that Austin you are looking for appreciation over cash flow as the city has exploded in price. However, that said, those that are buying the new condos downtown are set up for failure. Cash flow is still king and it will keep a newbie out of hot water if you focus on cash flow. Yes, it will be difficult to find deals that cash flow nicely in Austin, however you have to keep looking every day and expand to the surrounding towns. You said you just bought and you are moving to Austin? I like to recommend to single or young couples that your first property consideration should be to multifamily. Especially in Austin, as it will help you build equity and lower overall payments for more affordability. However, very few people consider a duplex as their first home. Those who do quickly realize the many advantages over SFH. Good Luck!

Elizabeth Hernandez · Answer

@Jordan Moorhead_ Good advice and thanks for your response! I suppose getting involved with REIA and meetup Investors in Austin would give me a more educated approach to enter the business,

Elizabeth Hernandez · Answer

Update***

Austin update- I purchased two "great deals" in South Austin. and a actively working on a 3 investment SFH in San Antonio(still need to see how it'll play out).

I put great deals in quotation since:

SFH #1.

a. I purchased a SFH at market value and got an AWESOME loan product 08/17. So the great deal here is the loan product is gold . 3% interest rate on a 15 yr conventional note with no PMI.

b. Currently, renting out short term but only PT due to Austin Code requirement.

SFH #2.

I purchased a 7 yo SFH in South Austin below market value so, about 10% automatic equity here. The timing was great, since it is a cooler market in November.

Thought I should take to time to update since, I've learned and done so much this past year in Austin.

Best,

Elizabeth

Elizabeth Hernandez · Answer

@Jason Hirko That's my thought process. Noted, I won't break the bank with the first deal. I lived in San Antonio and I too think it's a valid option. I'll start in Austin with Buy and Hold for now. Do you have a recommendation for first steps toward investing? I just purchased a primary residence, so I got a sneak peak in the Austin market.

Jason Hirko · Answer

@Elizabeth Hernandez If you are looking for a cash flowing rental to purchase, Austin is probably not the place to do it. However, don't let that turn you off from the market. Building equity through rent payments, forcing equity through a rehab, and appreciation are solid strategies. While there are things you don't control about an appreciation play, it is hardly luck if you know what you are doing. Just make sure you can weather the storm if it comes. With that said, San Antonio is a more forgiving market right now...

Newbie to The hot Austin market- Tips?

Newbie to The hot Austin market- Tips?

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