Investment property advice

[Ben Nguyen]

Hi! Happy holidays. I'm new to this site and REI, so seeking some advice from the more experienced folks here.

I live in the NYC area, but looking to purchase a rental investment property in the Austin metro area, where I have familial ties. I have approximately 300k cash on hand, with another 300k that I could get from refinancing my current home. 

I am currently thinking of a condo in the 200-300k range, but potentially more if the right deal comes along. From what I understand, being a cash buyer would help in the current competitive environment (although I'm not sure if I would be considered one if I had to do a cash out refi). The current plan would be to hold on the place for >5 years. Because I won't physically be in Austin most of the year, so it would ideally be in neighborhood with good schools to attract longer term tenants. I would appreciate any thoughts or advice about which neighborhoods I should look into or just any general tips for things to look out for.

Lastly, also curious on what everyone's thoughts are about whether this is even the best time to buy - from what I understand, the rates will be increasing over the course of the next year, which might make prices more advantageous for cash buyers like me?

Thanks in advance!!

[Seth Engelbrecht]

A lot of people are saying that there aren't deals to be had in this market and that they are waiting for prices to go down. In my opinion this is a low effort excuse used by people not willing to put the work in. There are deals to be had everywhere it just takes some time and effort to find them. It will be a little harder for you living half way across the country but maybe one of your family members in Austin would be willing to do some driving for dollars for you. Maybe there is someone you know that you could pay $5 per lead for a picture of a house that needs repair and the address in the area you want to buy. 

The problem with waiting for the market to drop is it never seems to do so when you're waiting for it. It is also a possibility that we will see prices in dollars stay the same or even increase but the value of the dollar going down faster resulting in the houses being "cheaper" when inflation adjusted. I think sitting on the sidelines isn't the best place to be in the current environment.

Seth