Multi-Family Austin MSA

25 Replies | Austin, Texas

I own 3 Multi Families and some single Families in the 744 and 745 and find they do very well. It’s just getting more competitive now so my next purchase will be off market or further south into Kyle, buda, San Marcos etc

Originally posted by @Lexi Teifke :

@Scott MacDonald  Would love to help out if you ever decide to change direction. We offer a very high quality management service. 

 Hi Lexi,

The end goal is to pass off the property management when I want to spend less time on my investments but for now I’m keeping my costs minimal. I will keep you in mind when that time comes. 

Thanks

Scott

@Michael Wolffs , I was looking at <$1M and in Central areas and saw rent-to-price ratios of .5% to about .7%. Still looking around and didn't mind those, in comparison, because I saw 4-plexes off of Parker Ln. S of Oltorf/Riverside i.e. Oracle and thought it had potential. Also, adjacent to the Edgewick condo community, new construction project.

I would love to get into Multi Family of 30 Units of more but I am still learning about it but I really want to get into it.

@Lexi Teifke please explain what you mean when you closed on Highland Heights.  Is this a new client?  Is this something you purchased?  What?  You own management company, we get that and you want to help other via your business.  I’m super curious when you speak about these deals in Austin you’re doing because they don’t sound like management jobs. 

@Renee Burke there are a few good deals on the market but why the northwest part of the city? I am curious. The domain is hot, of course, but I don't really consider that northwest anymore. 

@Aaron Gordy  Good observation! In order to house hack, I want to be close to Anderson high school because my kid goes there. It's a convenience thing for me. I want to have a duplex that is an investment property but also can provide a good base for me and kid for 4 years.

@Renee Burke Awesome! That is a great reason!! Living in a duplex while renting out the other side is a great introduction to real estate investments and also offsetting the ever increasing cost of living in Austin. That was my first investment years ago in 2000 and it has paid off handsomely. The properties on the west side of mopac near far west tend to be priced in the $400k-700k and there are pockets on the east side of mopac that tend to be lower priced in the 300's. I am not sure how much you know about those submarkets so I don't want to bore you.... 

@Aaron Gordy Hi thanks.  YOu are correct. I have been monitoring the market for the last 1-2 years (but initially looking for single family homes). I don't think a duplex WEst of MOpac would be a good investment because of the price points/rentals, etc. I think east of MOPAC is more reasonable.  I recently discovered the neighborhood near Lanier highschool (East of MOpac, north of Burnet) that looks pretty good.  Where can I learn more about potential submarkets if I am looking at $380k or lower?

@Renee Burke The area east of mopac is being affected by the entire burnet corridor gentrification. Allandale tends to be very expensive. Sometimes one can get a good flip in that area due to the considerable foundation problems in the area. There aren't many duplexes in that specific area though. Are you talking about the fireside street and hearthstone area? I have a very funny story about that street that happened to a very good friend of mine. 

The best way to learn alot about potential submarkets below $380k is the mls and through a good investment broker/agent. I can't toot my horn here as that is considered advertising.. The mls has great information on it and is the best source which a good agent/broker will share listings/research. For example, I can instantly see what properties are selling for x amount. The best thing is that I can do some serious research that is beyond observations. 

Other than the mls, I would look on zillow/trulia and cross reference tcad but that is a snapshot at best.