A Buy & Hold in Austin, Texas
3 Replies
Randy Lin Real Estate Investor from Rowland Heights, California
posted about 3 years agoDear 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
Dan Burstain from Austin, Texas
replied about 3 years agoHi 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.
Josh Bakhshi Real Estate Agent from Atlanta, Georgia
replied about 3 years agoRandy,
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
Randy Lin Real Estate Investor from Rowland Heights, California
replied about 3 years agoThank you two experienced investors for your guidance. If anyone other investors wants to chime in, please feel free to. Thank you!
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