All Forum Posts by: Rick Reeder

@Matthew Moorehouse, yes.  If you look at the Google Maps satellite view, you can see that Kyle is basically connected to Austin now, via IH-35.  Austin and San Antonio are approaching one another along that corridor.  San Marcos has what Bastrop offers, in terms of the river and recreation, plus it has Texas State University.  Take a look there, too.

I was looking for a STR at the coast (Port A or Surfside Beach) a few years back, and wound up pivoting to Lake LBJ after watching the rising sea levels, high cost of flood insurance and maintenance - and the risk that the federal government may stop subsidizing coastal flood insurance. Be sure to look into that for the specific property you're interested in. And if you need any advice on your Austin condo sale, I'm happy to help.

@Ryan Kelly is right, and if you're financing 80%, you won't find anything that cash-flows.  But that appreciation...  20% YoY for Jan 2020-2021!

I like @Lynn Wise's advice. Assuming no mortgage and probate is done, you can do a cash-out refi or HELOC to fund the renovations. Are you in Austin? If not, you may want a property manager to help oversee the renovations and manage the property (list on AirBNB, VRBO, etc., make sure the maids show up and the guests can check in & out easily). @Curt Smith also has good advice on what to invest in for STR. Final point - in Austin to have a licensed STR, it is supposed to be owner-occupied. Having an unlicensed STR opens you up for fines. Not sure how often that happens, but do your homework.

@Kady DeWeese I just bought a place in Angel Fire, NM for the same reason. Spent two months fixing it up and it’s cash flowing now (ski season). Planning to spend a good chunk of July and August there. Average high 75, closer and cheaper than CO ski towns. 9000 ft elevation in the southern Rockies. Aspen and pine trees, great mountain biking, hiking, fly fishing etc. Check it out! I can refer you to a great agent there if you get interested. Happy to help with listing your rental or running numbers if you need an agent, too.

If I were in your position I think I would spend a few hundred bucks on biscuits from Fixe or Tiff's Treats and go door-to-door with anyone would has an sight-line or would be bothered by construction.  Let them know what you're planning and how it will fit into a transitioning Clarksville (I sold a really unique place there in 2020).  Give your business card (or have your project manager do all of this).  "Please, please call me if I can do anything or if you see something you don't like."  An ounce of prevention is worth a pound of cure.  You may even ask who the grumpy neighbor is and give them extra attention.  Good luck - that's a tough one.

I've lived in Dallas and Austin. I prefer Austin out of the two, but that's my personal opinion.  San Antonio and Houston are great to visit, too, and (broad generalization) a bit less expensive to be close to 'downtown'.  If you come to Austin, hit me up and I'll be happy to show you around and I'm an agent so I could help you find a place to live too.

I don't know how strict the 'burbs are, but if you are looking to do an ADU in Austin, the first thing I would at is TREES. You could have an ideal lot with alley access, etc, but if there is a large tree where you want to put your ADU, you're stuck.

Hey @Joseph Villasenor - Austin is hyper-competitive right now, with multiple-offers commonplace and only about two weeks of inventory in the Austin MSA.  Folks that are pulling the trigger on investment properties right now are generally fine with near-term negative cash flow, or they are putting more than 20% down to get to equilibrium.  More rarely, they are house-hacking/finding off-market deals.  That said, if your goal is appreciation and you have patient capital, there are no signs of anything slowing down.  I believe we will see double-digit appreciation in many areas for the next year plus.  Let me know if I can be of help.

Austin is hyper-competitive right now, as noted. Less than a week of supply in some zip codes, almost everything getting multiple offers as soon as it hits MLS. I do think we will continue to see appreciation for the foreseeable future, though, so even a "bad" deal may look great in 5 years. If you move here, do get your license. Getting leads/customers is the hardest part, but one deal will make it all worthwhile. I'm an agent, so let me know if you want help looking or getting started with your license.