Montopolis in Austin, TX - Any Opinions?

Question

Hello all!

This may be too broad a question, but would anyone familiar with Austin mind giving their general opinion of the Montopolis area? I was driving through the neighborhood last week and was surprised to see a newly constructed SFH on Porter Street. Would any of you who are experienced buy-and-hold investors ever buy property in this neighborhood? Any response would be great!

Thanks,

Aysia

Jim Robertson · Answer

The neighborhood has a lot of vacant land/lots left to be developed. so consider the potential addition to supply against current or future demand. There are a lot of great things about the montopolis neighborhood and they should work out in your favor f you are looking at long time horizon. If you are going for a 3-5 year hold you will be selling your property built now in a market of even more new construction.

Aysia Lopez · Answer

@Scott Pollard @Johnny Wolff @Jim Robertson Thank you for the responses!

@Scott Pollard I'll be responding to our other conversation shortly.

@Johnny Wolff Glad to hear you are liking the area! Are you planning on purchasing any other properties around here?

@Jim Robertson Great observation! I had assumed that there would be a lot of residential communities popping up in the next few years, but I had not thought of these communities as my competition. Thanks for reminding me that there is a bigger picture!

Johnny Wolff · Answer

I recently bought one of the homes in the Milestone Eastwood at Riverside community and love the proximity to downtown, easy access to freeways, price point and build of the homes.  Lots of my neighbors feel the same way.  It is a bit of a retail desert at the moment but we're hoping that changes in the next few years.

With the addition of Oracle just a few minutes away the Montopolis area is a very convenient location for their employees to settle down as that campus reaches its capacity.

The community right across from the new milestone development is quite a bit older and I think there is an opportunity there for investors as well as north on Montopolis (that's where you'll find lots of beat up properties with BRRR potential)

Scott Pollard · Answer

@Aysia Lopez I would inspect the heck out of the homes in that area as most are in severe disrepair and many have a lot of additions/garage conversions that are not properly permitted that could cause serious issues in the future. If I was going for a long term buy hold in that area I might even consider building a new home and an ADU and renting those out so you have a fresh start and know the condition of the home is A+. Not ideal if you're trying to get in as cheap as possible but I would have serious concerns of the longevity of homes in that area.

Aysia Lopez · Answer

@Scott Pollard What I would like to do is buy distressed and repair. It would give me some comfort knowing that I can force some appreciation.

Scott Pollard · Answer

I would agree with @Kris Wong on this one. It's close in proximity to downtown which will only continue to build out. It's still a run-down area as of right now but that may mean there is an opportunity to buy lower and take in a healthy amount of appreciation. @Aysia Lopez As for a buy and hold, would you be looking to buy a newly developed home and hold it, or buy and older existing home and repair? Sellers in this area are wise to the Austin market and are asking higher than market values.

Aysia Lopez · Answer

Thanks @Kris Wong for the response! I have seen the Milestone community but did not know about the others. I'll be doing some more research!

Kris Wong · Answer

There is a lot of development going on in the Riverside Drive corridor to 71. Milestone and CalAtlantic are both building new master planned communities there. There are also new luxury multifamily units being developed. You will continue to see rapid gentrification in this area over the next several years.

Montopolis in Austin, TX - Any Opinions?

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