Looking to Invest in the Austin Area

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Looking to Invest in the Austin Area

Travis Knight
Austin, TX · Member since 2016 · 13 posts · 3 votes

I'm new to RE investing. I live in San Francisco, but I'm from Central Texas (Burnet) and lived in Austin for awhile. I'm looking to do some investing in the Austin area, but the market seems really hot and everything looks overpriced.

If there are any Central Texas RE investors that would be willing to have a phone conversation with me, I would really appreciate it, and would be happy to buy you lunch next time I'm in Austin. I'm really try to get a sense if investing (at my level of capital) makes any sense right now. 

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  • Carrie Hiner
    Real Estate Agent · Austin, TX · Member since 2015 · 181 posts · 75 votes
    10y

    Hey Travis, I'm an agent but I can give a fair, unbiased opinion.  Short of it, yes, market is high.  Sales prices are moving faster than rents, but decent returns still exists.  Feel free to call or email. 

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  • Kelly Smith
    Lender · Across US · Member since 2015 · 66 posts · 18 votes
    10y

    What kind of investing are you looking to do?

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  • Travis Knight
    OP
    Austin, TX · Member since 2016 · 13 posts · 3 votes
    10y

    @Carrie Hiner - Thanks for the note. I'll give you a call and hopefully we can connect this week or next.

    @Kelly Smith - I was looking into small MFH initially, but am opening up to SFR. I've also been pointed to some subdivisions that are going up, and have thought about purchasing before they are built (I'm told this can lead to appreciation before the mortgage payments even start). With the latter one, I'm really worried about so much inventory popping up in those areas, and me having to hold for quite awhile because all of the new inventory depresses sales values, and keeps rents from generating a good cash flow return. Ultimately, I'm open. Just looking for a good return. My price range is less than $350 or $400k.

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  • Dan BurstainBusiness Member
    Real Estate Agent · Austin, TX · Member since 2014 · 361 posts · 331 votes
    10y

    Hi Travis,

    At that price point you have a lot of options. I am still very bullish on Austin and although we all wish we would have bought more 5 years ago people have been saying that for decades in these growing cities. There are many who won't invest in Austin because cash flow is not as nice as other places. Those people have missed out on some very nice returns. You cannot bank on appreciation but you sure can look at a place and say that place will most likely appreciate a lot more than this one. Job growth, occupancy rates, population growth, past history, and many other variables can paint a picture of potential appreciation. Right now, there are very few cities if any with a prettier picture than Austin. So let me know if you are interested and I will send you some great multi-family investment options at that price point or lower. You may want to also consider buying an SFR or two. There are some great buys right now that will cash flow and have great appreciation potential. Happy to send them to you or just talk about where job growth is happening, what areas of town are looking to take off, etc. Happy to help.

    [email protected]512-588-3260
    Dan Burstain, Investment Realtor51 Review
    WebsiteView Page
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  • Tucker Ramsey
    Austin, TX · Member since 2015 · 27 posts · 2 votes
    10y

    @Travis Knight I am a little late to the party here but thought I would throw in my two cents. 

    Rental properties are a great way for an investor to make nice returns but there are many factors that some people don't know think about before getting into the rental business. Property management, reserve funds for unexpected repairs, tenant issues, the market might be hot right now but in 3 years it might be in a downward spiral, etc...Not trying to say that buying for the purpose of renting is a bad strategy, just saying that there is a lot to consider before getting into it.

    Some of those reasons is what has pushed me to bring my clients mainly properties that we are going to either tear down and build new or remodel. I have started to favor these investments for a few reasons and it really has worked out. The biggest plus that I have seen from my group of clients is that the smaller investors are able to build their capital equity each project and grow their equity share with each project allowing us to do bigger and bigger projects. I am sure I already missed you while you were in town but give me a shout anytime if you would like to talk. 

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  • Travis Knight
    OP
    Austin, TX · Member since 2016 · 13 posts · 3 votes
    10y

    @Dan Burstain Hi Dan - I would definitely like to take a look. Can you please send them to tknight113  -  gmail.com?

    I am looking at both MFH as well as SFR.

    Thanks - Travis

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