All Forum Posts by: Dan Burstain

slightly older but gives you an idea. Austin is usually last in and first out of any recession because of our huge government and university job base. . Yes, cash flow may be lower but ROI is as good as it gets.

Hi Nicholas,

That is an hour long conversation.  In short - hottest area now is where Apple is plopping a billion dollars (NW Austin).  Flips can happen anywhere and be a good deal if the numbers are right to begin with.  Great neighborhoods would depend on your style of living, if you have kids, etc. etc.  Austin is a great place to invest for the long term.  I bought 4 homes last year and plan on buying more.  Great place to live.  A bit warmer than White Lake Michigan.  

Hi Todd,

Thank you for sharing this and the gofundme link.  It is sad and terrible news.  I am here in Austin and can deliver anything to the hospital if needed.  Thoughts and prayers go out to Jordan and his family.  

You don't have to go outside of Austin to find houses at $175K or below.  Plenty of condos but there still are houses as well.  I have about 8 within 40 min or less of downtown Austin.  Some only 20 min or less.   PM me and I will send you a link to them.  As for short term rentals, they have stopped issuing permits for them as far as single family homes renting out the entire home.  The only way to do it now, and not live there, is buy a four plex and short term rental half and long term rental the other half.  They still allow you to do that I believe.  But with $175K budget you won't find a four plex in the Austin area.  

@Nina Hayden - This goes without saying. The quickest way to lose money in real estate is being forced to sell. If you have not thought about capex when buying this is a problem. So hopefully you have some reserves. There are ways to get cash or protect yourself from potential expenses inside the structure of the deal. But you should have reserves at all times. You don't want to buy something and live paycheck to paycheck. It is too risky. As for the whole cash flow conversation, I will revert back to initial comment. Central Austin, with 3.5% down will not cash flow. That is not even considering house hacking. I am not sure there is a place in all of Texas that will cash flow while house hacking at 3.5% down. Does that mean it is a bad investment - not in my opinion. Like I said, Austin is an appreciation (ROI) play. Only interested in maximizing cash flow - you should look to invest in Ohio or other states that have minimal appreciation play.

Scott,

I really feel this is one of the very few problems with BP. They have investors who invest all over the nation giving their opinion and that opinion may be spot on where they invest and completely wrong in other places. If you are looking for a duplex closer in the Austin city limits then cash flow is not going to be ideal. However, ROI should be. People on BP will tell you they never invest unless they get 1% or hundreds of dollars in positive cash flow and I will tell you those who invested in Central Austin the past 5 years have made way more money, in negative cash flow, than all those 1%ers. Then comes the saying, appreciation is icing on the cake and should not be counted on and I will say definitely, in some areas of the country. In Austin we have consistently seen appreciation for the past 30 years. So, I would recommend getting in the game sooner than later and just understand that at 3.5% down in a house hacking situation, Austin just might be the best place to invest and the best for an exit strategy. PM me if you are interested in buying that place and I will work out a commission rebate for you to make the deal sweeter.

I am a believer in the Austin market. I sold my duplex in Long Beach, CA last year and bought a duplex and 3 single family homes here in Austin with a 1031 exchange. 118 people moving here every day and every economist saying Austin, the 11th most populated city in the nation, will double in size in the next 20 years. It is tough to ask a generic BP question because each part of the country is different. You should not look at appreciation in say the midwest like you can here in Austin. We have 30 years of constant appreciation. Even in the housing crisis our sales prices were back higher than they were before the crisis just some 18 months later. We have a large, strong employment base with the government and university being two of the biggest employers. Add Silicon Hills and now a new push in medical research and we have a very stable, diversified, and growing job sector with 35,000 new jobs a year. I just don't see a better ROI place right now than Austin.

All about what you want, cash flow or ROI. I am guessing even all these posters saying how much they paid in property taxes the last decade made better ROI than most anywhere in the country. So yes, taxes are usually in the mid 2% here but I think it is still one of the best places to invest for return on investment. Austin has 118 people moving here every day, has the state government and huge university to bolster its economy along with being a huge tech hub and now soon a medical hub. The 11th largest city in the nation, predicted to double in size in the next 15 to 20 years. So you can go to Alabama or Cleveland or wherever and find your 1 and 2% rule for great cash flow but at the end of the day, if I am buying and holding, 5 to 10 years from now I bet I make more money here in Austin.

PM me your contact info and I will have an agent handling Saint Clair County contact you.

Beautiful 2014 home. This well maintained, open floor plan, 3bed/2bath home boasts granite countertops, tile flooring in wet areas, covered back patio extended for entertaining that backs to greenbelt! Easy access to 183A and just down the road from shopping and restaurants at 1890 Ranch and The Parke shopping centers. Enjoy Leander ISD schools, a community pool, splash pad, parks, and playscapes.  Sprinkler system, 2 car attached garage, stainless appliances, and more.