Investing outside the Austin MSA

4 Replies

My wife and I are getting back into property investment. We did a flip in Round Rock in 2018, and although we ended up losing money, we learned so much from it. We've recouped our losses and are taking our experiences and lessons learned and getting back into the game. Our goal is in long term rentals. Unfortunately the prices in the Austin MSA make this very difficult to get into and limit options for cash flowing properties. We have recently started to look outside the area in places like Burnet, Marble Falls, etc. These areas seem to have a mix of A/B/C property types, and have seen appreciation recently due to the massive growth of Austin and the surrounding areas. I'm curious if others are investing in these more rural communities and what luck they've been having.

Why not Leander where you're at or Liberty Hill? What price range are you looking at for buy and hold? I am personally looking at those two areas right now. Haven't pulled the trigger yet though.

It's not easy, but off market deals in the Austin suburbs can still break even or cash flow a little especially if you don't mind self managing. I shared some examples in this thread. 

https://www.biggerpockets.com/...

I've invested in Killeen some but I would only do that when it's an excellent deal, be very careful on neighborhood, and I would assume no appreciation above the rate of inflation. 

@Toye Ade we'd love to pick up something locally, but deals are difficult to find and prices are much higher here in Leander and Liberty Hill.

@Andrew W. yea, we've been looking in Austin as well. The problem is most of the properties are pretty significant BRRRR projects past our level of experience and out of our comfort zone from a financing perspective, although we're continuing to keep our eyes open. I was stationed in Ft. Hood from 05-07 so I'm very familiar with Killeen. If we were to pick up anything there, it would likely be something we can get for at least 20% CoC return due to the lack of appreciation.

Sounds good, I would just be very cautious of any high cash flow numbers that you see on Class C and D properties in Killeen. It may not play out like that in reality if you have evictions, damage, etc. Solid property management is super important up there, I recommend Gold Medal Property Management for Killeen/Temple/etc. They will steer you to realistic expectations and neighborhoods that will work.