New Investor- Texas Market
BP Family,
I’ve always loved only handful of things, two of them
are Florida and Real estate, so I want to combine them both. This is a
dream of mine and what I want to pass to my children.
I’ve also
done my due diligence, read hundreds of blogs/forums, and the obvious
areas investors are piling into are- Austin, New Braunfels, and everywhere in between them.
I live in Washington, so I am seeking assistance. A little more I aim to have a BRRRR under my belt before end of the summer, so I can quickly surface answers to questions I do not know to ask; enabling me to scale to your level. Right off the bat, what is the target cash flow per door (in understand this is 100% dependent on 150 variables- deal, funding type, type of house area, personal goal target, etc.)? My 6 month goal is 1
door, 12 month goal is 3 doors, 24 month goal is 10 doors.. overall, 10 doors by 30 years old. Choosing Texas, as I want to invest in locations that I would want to visit. No offense to Ohio (other market I've looked extensively), but I live in Washington.. love my home state, but I despise the cold. For insight, I have multiple avenues for funding, and aim to BRRR
and hold the properties long term; however, also willing to leverage
market specific strategies (AirBNB, etc). With this my main questions are:
- What market would be a better one (highly subjective so cannot say the best) for a new long distance investor?
Are there specific nuances I should be honing in on (I.e., TX specific laws, etc.) - Are there any recommended attorneys, real estate agents, contractors, property managers anyone wouldn’t mind pointing me towards?
Any assistance is welcomed :)
Justin Rush
Most Popular Reply
Hi Justin,
Where you invest will depend largely on your goals beyond the number of doors you would like to own. Texas is a huge state. Austin is leading the way when it comes to real estate appreciation. As I understand it, investors are willing to pay $100K over asking in the current market. DFW has received the spillover from those interested in Texas but not willing to pay 6 figures over asking to win. The 1% rule is not available in this market. If your budget is $300K or less you are competing with first-time homeowners. Based on my observation, sellers are getting $25k over asking. This is a seller's market. As a buyer, you must be prepared to fight and know when to walk away. Run your numbers and get prequalified before contacting a realtor. Only you can determine whether or not the deal meets your goals. Hope this helps.
Rob