All Forum Posts by: Dan Burstain

Tonya,

Maximum size really depends on size of lot, zoning, restrictions, lots of variables.  Typically it is no greater than 1100sqft.  You need at least a total lot size over about .15 acres or zoned for multi-family.  Average cost per square foot varies just like building a home.  What type of finishes, how hard to build on the land (slab, trees, utilities, etc.).  At the end of the day though I think anything that will be livable (with full bath and kitchen) will be starting around $80K.

Location will matter most.  Then small rooms can be compensated by decent living area (indoors and/or outdoors).  So don't worry about the room size as much.  Most people who rent rooms are not looking to stay in it much.  Although with Covid that might be changing.

Duplexes go for about $370K around there and fourplexes start around $500K.  There are a few available.  

Do you have a budget in mind?  

What are your goals?  If I am just guessing, I would say duplex would be better but it really depends on what you are trying to accomplish long term.

We didn't burst during the oil crisis.  We didn't burst during the dot com bust.  We didn't burst during the housing crisis.  We will be fine.  Prices are climbing as we speak.  We are about to be the 10th largest city in the nation expected to double in size in the next 15-20 years.  Now Tesla is coming to Austin and the jobs keep coming.  Time to get in is now.  We have 40 years of data that shows people should invest in Austin sooner than later.  

i would buy a duplex closer in to town or anything near Robinson Ranch (Apple's billion dollar future campus that will be 10X bigger than the Domain).  PM me if you want me to send any listings. Good luck and welcome to BP.

83 out of 100 economists according to Zillow think it is one of the best ideas.  If you okay not hitting the 1% rule because you understand Austin is about return on investment and not cash flow, then yes, you will find some nice properties right by Tesla's site that will positive cash flow and appreciate nicely.  

@Joe Scaparra - Hi Joe, I can tell you that I own both SFH and duplexes and handle a ton of BP clients who have invested in SFHs as well as those that invest in multi-family. The big difference I see is that those who invest in multi-family have property management set up. Those that are buying SFH's I find do it for two reasons. If they are not buying 10 but one or two, they find it easier to manage. Secondly, they can find brand new homes or much newer homes to keep their CapEx down. Most duplexes in the Austin area are older and require more work aka time.

As for the comments on Buda vs other spots.  It is hard to go wrong in Central Texas these days but there are definitely some hot spots.  Tesla is going to build its truck plant in East Austin near 130 and Harold Green.  Buda is a 25 min. drive from there but Austin Colony with its new single family homes for about $220K is about 5 minutes from there.  Tesla is hiring 5000 workers for that plant with a min. salary starting around $40K.  I see great appreciation there as I see it in NW Austin with the billion dollar Apple campus coming to Robinson Ranch.  Amazon is building in Round Rock and there are some great buys there too.  

I think it is a nice list and thank you for sharing it.  The only thing it is missing is year over year.  I think the Annual Total Return is more of a roller coaster ride for cities like Phoenix and those in Florida vs. what you see in Austin with the consistent steady rise.  Austin was over the housing crisis about 15 months after it hit there where some cities like Phoenix have just gotten back to those numbers in the past year or two.  So investment timing and selling is critical in those cities.