All Forum Posts by: Neil Narayan

@Soujanya Masna

Austin is foretasted to be the top city in US for appreciation. Rents will always lag home prices when a city is appreciating that fast. If you goal is cash you would have to MF or go outside of Austin to the neighboring towns that will eventually benefit from the rise in Austin's economy. 

@Mike Patel

One friends had a liquor store and he made a lot of money in the beginning but profits slowed down with Specs and other big names coming in. Also you do have to work long hours and stay vigilant regarding your employees. He got out after 7 yrs or so as the grind was not worth the profit any more for him

@ Mathew Aubert

The pre-paids will be prorated but a lot of teh closing costs is negotiable on who pays. The seller's agent has a fiduciary responsibility to negotiate the sales contract in the best interest of his client so he will be obligated to pass on most of the cost to you. 

If you get your own agent, then he is obligated to negotiate for the most favorable terms to you. If you are not paying for it then it only makes sense to hire a Buyer's Agent.

@John Collins you would be working directly with me :)

@John Collins

The occupancy rate in Austin is ~95% so your good in most areas :) I advise all my clients to stick with starter homes for rentals if they prefer SFH as those are the easiest to rent. BTW you won't find 1% rule in Austin as the home prices have appreciated so fast that the rents are lagging. Even Rehabs are tough in Austin as there is string competition for it. Hit me up in Feb when you are in town and we can chat more.

@John Collins

You are right that tech professionals prefer newer homes and there are not too many new developments in North Austin. Most of my clients prefer new or newer homes to reduce the maintenance headaches therefore they have been going North of Austin i.e. Round Rock, Cedar Park, Pflugerville and Leander. It really depends on your investments goals and strategy before you can narrow down a specific area. 

Most of my clients have been gravitating towards North of Austin due to the number of Tech companies popping up there. But I have done quite a few investment props in South Austin as well.

Office condos are popular in Austin. I have done a few in South and North of Austin and the one in Leander is under construction. I have had no issues renting out Office Condos after purchase and it is a lower term lease as well with rent escalations built in. Let me know if you need any help.

You can get newer duplexes in Buda/Kyle compared to S. Austin though.

Cash flow depends on how much you are putting down, which price points you are targeting and which areas. You have a better chance of cash flow if you go to the outskirts of Austin.