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Texas Real Estate Q&A Discussion Forum

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Joe Crupi
  • Rental Property Investor
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Taking Advantage of Market in Austin

Joe Crupi
  • Rental Property Investor
Posted Aug 12 2019, 05:44

So I know the Apple complex should be starting construction somewhat soon, and that it'll be probably a 2-ish year construction time frame.  Is anyone game planning or already making moves to take advantage of the insane number of tradesmen, etc that will be coming in to work on that project?  Is anyone scooping up properties to make rentals, or finding land to put mobile homes/storage facilities?  Would love to hear of any ideas of how to capitalize on it, and if any of ya'll are already making moves on it.

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Steve R.
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Replied Aug 14 2019, 21:20

Finding Multi family deals in these areas which makes the number work has been pretty difficult for me, unless you find some really good off market deal. 

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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
989
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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
Replied Aug 15 2019, 08:27

@Scott Fehrenkamp Hey man, how's it going?  Those are all solid areas for rentals. Those suburbs are largely commuter type areas. They can work in either San Marcos, Austin as well as New Braunfels and San Antonio. My barber lives in Kyle. His next door neighbor commutes back and forth to San Antonio. That whole area is doing well even Lockhart in Caldwell County. Caldwell county median prices increased by 12.4% year over year this past July according to ABOR. Those areas are also welcoming more corporate developments. According to the article below, Kyle has experienced a 700% growth during the last 15 years...nuts!!

https://www.globest.com/2018/07/22/kyle-takes-the-reins-in-innovation-corridor/?slreturn=20190715112535

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Joe Crupi
  • Rental Property Investor
17
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103
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Joe Crupi
  • Rental Property Investor
Replied Aug 16 2019, 06:00

@Aaron Gordy

Whoever can afford to gobble up land between SA and Austin will make a killing down the road

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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
989
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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
Replied Aug 16 2019, 08:10

@Joe Crupi Agreed

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Jenny D.
Pro Member
  • Rental Property Investor
  • Austin, TX
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Jenny D.
Pro Member
  • Rental Property Investor
  • Austin, TX
Replied Aug 21 2019, 13:13

@Joe Crupi Traffic already sucks...lol. I love the idea of lots for storage. Even something as simple as a lot to park all the semi trucks hauling dirt is in high demand.  

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Jeff Cagle
  • Flipper/Rehabber
  • Bakersfield, CA
594
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269
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Jeff Cagle
  • Flipper/Rehabber
  • Bakersfield, CA
Replied Aug 21 2019, 15:01

I was invested in the Austin market from 2006 to around 2016. For the most part I believe the move in Austin has been made at this point. Current MF pricing coupled with high property taxes mean that the numbers just don't make sense anymore, and I see little possibility of the same kind of appreciation going forward that we've seen in recent years. Once everyone agrees that a market is hot it's really tough to find viable deals there. I've moved on to Bexar county now. I see many of the same things happening in San Antonio that I saw in Austin 13 years ago when I initially decided to invest there.

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Joe Crupi
  • Rental Property Investor
17
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103
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Joe Crupi
  • Rental Property Investor
Replied Aug 23 2019, 03:22

@Jenny D.  Exactly!!!  I'd be interested if you came across anything unique that would take advantage of that kind idea!

@Jeff Cagle I can definitely see that being the case. My only thought being is there going to be another spike as the Apple campus moves forward...I don't know. One would think it would though, especially if the salaries follow. Bexar county also seems like a pickle. My taxes there have about doubled, and my rent hasn't gone up much at all in reality. I'm now paying more in PITI than grossing in rent!

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Jenny D.
Pro Member
  • Rental Property Investor
  • Austin, TX
10
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37
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Jenny D.
Pro Member
  • Rental Property Investor
  • Austin, TX
Replied Aug 23 2019, 07:53

@Jeff Cagle Great point! I'm new to Austin and new to investing. I've been noodling on a similar thought... How can I find a good deal in a super crowded market. Our local REIA points to hot spots and encourages finding deals. I've wondered about looking toward Round Rock, Leander, Georgetown. The REIA's perspective is...too much cheap land with expensive houses. I'm curious how you would answer that in relation to the clogged, hyper competitive Austin market.