What is your ideal Buy & Hold deal in Austin, Texas?
Hi - I'm a new investor and I’m trying to figure out what a good, hypothetical, Buy & Hold deal is in Austin to get cashflow. I'm struggling to see what I could realistically buy that's profitable (even if I hustled and found a low-priced, off-market deal).
I'm looking at Single-Family Homes, 3 bed, 2 bath. I'm estimating:
$1600 - $1800 for rent
180K - 220K all-in (which would include some combination of the purchase price + the rehab)
20% Down Payment, 3.5% interest over 30 years
Expenses:
2.2% Property Taxes
$100-$140 monthly Building & Hazard Insurance
5% Vacancy
5% Maintenance/Repairs
10% Capital Expenditures
(Would love to account for a 10% property mgmt expense but that makes it even more unprofitable)
Key Question: What is your ideal Buy & Hold deal in Austin (realistically) and how are you flexing your numbers?
Is there something I'm not accounting for (e.g. are you renting by the room to get more rent income, are there better price-to-rent ratios than what I've listed)? Are you primarily buying for appreciation, and foregoing cashflow as much as you can afford it because it's hard to come by? Is flipping or other RE strategies more common in Austin than Buy & Hold because cashflow is hard to find?
I've looked at a few Austin investor BP profiles with Buy & Hold investments listed, and I always have the same question - how is it getting cashflow?
Would appreciate any thoughts or insight.