All Forum Posts by: Ryan Kelly

Most of the damage has been done in Austin, so I expect normalization within 6-12 months. Cash flow is still very challenging, like any fast growing metro, but appreciation will likely start trending positive again starting next year as we go over the peak of inventory. We're seeing some good equity deals and sellers desperate enough to offer them. I don't know if we'll see these same dynamics in years ahead. Well, except For condos, they have a long way to go!

Hi@Omer Hassan, I'm happy to email you my list. Just shoot me a message with your info and I'll send your way. Cheers. 

@Chruisteen Pace welcome back to BP and Texas is a great spot for long-term appreciation, job growth, and rental demand. Be prepared to put a higher percent of money down to get properties to reach a cash flow neutral stage. Higher costs from insurance, property taxes, and the higher mortgage rates have outpaced rents the past few years, so you have to be more conservative. If you want to connect on the Austin market, feel free to reach out.

@Ryan Tongue some sage advice to share. Too many investors plant a seed in the ground and then are frustrated they don't have a mature tree bearing lots of fruit (cash flow) six months later. Growing a tree takes consistent care (property management), fertilizing (maintenance), and water (capital) to keep it alive and growing for many years. The fruit, or steady positive cash flow, is typically the result of several years of maintaining and improving the property. What is the reward while you wait? Appreciation, depreciation, and loan pay down. These are the early benefits you get for planting the seed. Keep at it and focus on the long-term goals.  

I recommend all clients get the sewer lines inspected, even on new construction here in Texas. You never know what you will find.

I would consult a real estate attorney, or if you are working with a title company, they can have their legal team provide guidance for you. 

If you are in a mandatory POA, you agreed as a property owner to pay your dues as a member. I would refer to your closing documents. Quite often, POAs and HOAs have the same option to foreclose on your property just as a lender does if you don't pay your mortgage, or county if you don't pay your taxes. As always, contact a real estate attorney for legal advice.

Great job @Devin Dang! Is this in north or northeast Austin? I toured a home last year that looked a lot like this one and just curious if it's the same house :)

Good luck finding almost any market above 1%, let alone 2%. Plus, they will typically be low appreciation, low population growth markets. You are correct, most larger markets are seeing closer to 1/2 of 1% rent to purchase price ratios. 

I like a minimum of $10,000 or more per property. Capex can catch up fast, so I want enough to handle a big replacement like an HVAC system or room remodel.