I am interested in investing in multi or apartment buidling in Texas, preferrably Austin. I plan to make a trip there soon and was wondering a few things: First where is the best or potential best place to buy in Austin and second how do I find a wholesaler in the area who will help find some deal for multi/apart deals.
I plan to use a property managment company and will include that equation in the numbers. I just want to make sure when I am there that I concentrate my efforts in the right area.
Apartments and Multi are very popular, even in this buyer’s market. You’ll face stiff competition and 4% CAPs or so.
Austin is not really a rental market because we have the highest average sales price in in Texas, besides Dallas. Rents have increased recently, so that’s good, but your expectations need to be set properly. Some areas look like good rental areas because the properties are cheap, but the properties take a long time to rent and you’ll have low-end renters.
If you actually expect cashflow, you may want to look in Houston or San Antonio. 20% down is expected to get a return. Sometimes 10% can do ok, but with the mortgage market the way it is, a loan could be tough.
Indianapolis is a Great area for investing in foreclosures. On average, we are seeing a 28% return on your money by actually ‘selling’ the properties instead of holding to rent for a small monthly cashflow.