All Forum Posts by: Mukul Patil

@Danny Webber When calculating the cash flow did you factor in vacancy and property management fees?

When I plug that in I do not see any properties that have a positive cash flow. I am assuming that homes in Jarrell will stay vacant for a month before getting rented out. In your experience, what is the vacancy period there?

Hello Daven. I too have been looking at properties in Jarrell. 

Conventional wisdom would say that you should not invest in Jarrell at this point in time. That is because it is cash flow negative once you factor in vacancy and property management fees. This is true for most of Austin today.

However everyone is still piling on Austin real estate expecting that the prices and rents will appreciate. Given past growth and future potential that seems like a reasonable expectation. 

In short you should buy in Jarrell if you believe that the city of Austin will continue to grow. Current data seems to indicate that it will. How it will actually unfold is anybody's guess.

Personally, I am still thinking of going ahead with investing in Jarrell.

@Deepa Jan I too am researching properties around Jarrell.

As @Pat Brown said, you can manage to just barely break even. However if you hire a property manager then you will end up with a negative cash flow.

@Siddhartha Roy @Vansh Makh and other potential out of state investors:

I too, am in the same boat - Bay area resident, looking to invest around Dallas. I would most likely use a turn key operator to get my first rental property. 

I would like to get in touch with you to exchange notes.