Can anyone give me thescope on Austin and the surrounding areas. I have been checking out some sites and sfr listings and I cannott believe how affordable these homes are. Homes that are3/2 with two car garage listed at 155K that would go for nothing less than 250K in my region. Is there some reason why Austin seems to have good deals? Lack of tenants, tough landlord laws, economic downturn, anything?
Has anyone on this board purchased homes in Texas for investment purposes? What are the up and coming areas vs. the dead and going areas to look at?
I have lived here in Austin and invested here for over 15 years. I wish I had all the junk property I bought for next to nothing in early 90’s. The prices have doubled since then. That same house was probably $75K with rent of $600 to $650. Rates were higher then too. Personally I prefer cheaper houses and duplexes. I am buying in Waco, Killeen and Corpus. I am probably short sighted as I feel Austin is still growing but it is still hard for me to buy at more than twice what I paid before. It takes a lot of looking to find a cash flow deal.
Ted, I know what ya mean about the prices doubling. I’m in Austin to and its hard for me to see paying that 150-160 as well.
How is the Kileen market? I’m in Kileen quite often and I have been checking out the market for a few months. I do notice a lot junkers and inexpensive homes. What are the price ranges of homes there?
The rental rates are about $300-400 per bedroom in Austin. The better/worse the area, the higher or lower the price. From what I’ve heard, the Killeen market seems to be doing well. I met a few agents up there who were selling some rental houses and apartments.
Besides Austin and Round Rock, I’m looking to purchase in San Antonio and San Marcos. My strategy is still buy/hold right now. Rehabbers are having a great time in Killeen, San Antonio, and somewhat in Bastrop.