A Buy & Hold in Austin, Texas

3 Replies

Dear Investors,

Is this a good deal?

Property: Austin, Texas

Purchase Price: $145,000

Rent: $1300/month

Property Tax: 2.7% a year

HOA: $0

Maintenance: 5%

Property Manager: 8%

25% down, 3.750% interest rate for 15 years

SFR will be completely paid off in 15 years. Right now will be cash flow neutral.

I am a veteran stock market investor, but I am relatively new to real estate. Also, do you recommend any other places I might be able to buy & hold that will give me a better return with exposure to market appreciation?

Thanks,

Randy

Hi Randy,

Where in Austin is this property (neighborhood name or zip code is enough)?  I just want to make sure you won't have a vacancy problem and what the appreciation for that area looks like.  But it looks pretty good.  Not the 1% many people are looking for but if you can get it in a decent area with some upside appreciation it is well worth it.

Randy,

Dan is correct and he knows the area better.  Good things about Austin are that the university and capital aren't moving anywhere.  Looks like you know your numbers, but a couple things to keep in mind is that within 15 years you will have more major expenses that you budgeted for.  Mainly roof and HVAC. 

My question to you is your main goal to own the house free and clear after 15 years and going for appreciation?  Then it's not a bad deal.  But you should shop it more and see if you can get a better deal.

Good luck

Thank you two experienced investors for your guidance.  If anyone other investors wants to chime in, please feel free to.  Thank you!

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.