Home Buying in 78751>Question Details

Hp, Home Buyer in 78751

I was wondering if the 400 sq ft studio condos in hyde park are good investments. what is an excellent price for 1 & what do they typically rent?

Asked by Hp, 78751 Tue Sep 7, 2010

for? hyde park condo as investments

Help the community by answering this question:


Thinking strictly about real estate as an investment, you should develop some criteria or a formula for investing that you are comfortable with. For example, most investors consider two basic elements: 1) appreciation and 2) cash flow. Ideally, you get both. However, some areas appreciate more historically and investors are willing to break-even on cash flow with the objective to sell the property at some point in the future. Others are looking for mailbox money (ie rent) and lean towards cash flow.

All this written, there are no guarantees a property will meet financial goals - look to investors who bought in Austin at the top of the market in 2005-06 and trying to sell today. Be smart, create a plan, do the research and stick to it - best position to set yourself up to do well.

As far as rents go, condition and specific location are important. Without a specific property to use as a baseline, a 400sf condo in HP is likely to fetch $500-750/month. Ballpark figures here.

If you'd like to talk it through, feel free to give me a call - 512-459-3400.

Good luck!

Web Reference: http://www.crowehomes.com
1 vote Thank Flag Link Tue Sep 7, 2010
what do you mean by 'good'?
depends on the condo, but generally hoa fees eat up your cash-flow and they don't appreciate as well as other property options..
A rule of thumb a wealthy investor friend of mine uses is a 10% capitalization rate: NOI / 10% gives your value. I'm not that conservative - but it's a good place to start. Call me and we can chat about it.
0 votes Thank Flag Link Wed Mar 23, 2011
As a lender and investor you need to look at whom you may sell to in the future and from a lender perspective "condo" financing is very difficult in today’s market and the harder the qualifying the smaller your potential buyer pool will be when you sell it...less demand...less profit. That being said - Hyde Park is centrally located and is going to hold up well during depressed times ( if you buy it right )
0 votes Thank Flag Link Thu Sep 9, 2010
Dear HP,
Hyde Park is a great buy in my opinion. These little condos are perfect for many UT students and it is very close to the university. So if your looking for an investment it is a good bet you will be able to keep it rented. If you want to see recently sold comps just let me know and I can email it to you.
0 votes Thank Flag Link Tue Sep 7, 2010
You need have a consultant involved who can interview determine short and long term goals. Many investors make HUGE financial mistakes thinking one location is a great opp vs. other similiar areas.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Sep 7, 2010
I'm getting $625 for 12 units in this price range on 38th. Here is the video... http://www.youtube.com/watch?v=0911-D0Pqro
The best 400 sq ft deal I know is in Old West Austin with a capitol view for $159k that will rent for $1050. Here is the video. http://www.youtube.com/watch?v=0_uGUSOmov0
0 votes Thank Flag Link Tue Sep 7, 2010
There are several complexes that match this price range in this area. Some are better than others. Generally these units rent about $1.50-1.75 per sq ft or $600-$700+/-. Financing is more difficult than it used to be. If you are looking for cash flow, then you probably should be a cash buyer otherwise your debt service with your other expenses will exceed your rental income. If you are looking for appreciation, being central in a desired neighborhood is almost always a good long term strategy.

25 years in this area selling condos. Can help you make the right choice. Call me (512)203-4100 or condojoe@re-al.com

"Condo Joe" Bryson
Real Estate Alliance, Inc.
0 votes Thank Flag Link Tue Sep 7, 2010
As a current owner of two 400 sgft condos in Hyde Park, I can answer these questions in great detail.
Feel free to call.
Evelyn Hernandez
0 votes Thank Flag Link Tue Sep 7, 2010
The condos that I have listed are not in Hyde Park, but in West Campus three blocks from UT. Are these the ones that you are referencing? The last unit that sold in this complex was in late July for $107,500. We have these listed for $104,000. They are both leased for $825/month. Typically, anything this close to UT is a good investment. These owners are reallocating their investment funds right now and no longer have a need for UT properties. Please let me know, if you would like any additional information. Teresa@RobersonResidential.com
0 votes Thank Flag Link Tue Sep 7, 2010
I'm sure there are any 400 sq. ft. condos in Hyde Park, they start at about 600 sq. ft. usually, but I can tell you that the going range for condos is between $180-$250 per square foot depending upon how nice, newer, location etc. Hyde Park is highly desirable for both students and professionals so renting them is not usually a problem. I live in Hyde Park and know it very well. Call or email me and I'll tell you all about it.

Phillip Baird
Keller Williams Realty
fax: 512-623-6032
0 votes Thank Flag Link Tue Sep 7, 2010
What is your preferred investment strategy? This will help determine how you define "investment" and would help responders to your post know a little more about what your investment objective is.
0 votes Thank Flag Link Tue Sep 7, 2010
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