I have the home for you in Kyle! i just held open a lovely one story 3-2-2 in Kyle close to the new hospital. It is brand new construction with many upgrades (stained concrete floors, high ceilings rounded corners,recessed lighting, totally finished out garage and more) found in custom homes and its only $172,500!! This area is booming due to Cabelas and the new Seton Hospital. Now is a great time to buy!
Okay, you asked for my thoughts...if you refi and your payments are appx $1350 per month including taxes and insurance, your rental income is $1200 per month (I went with the higher number) less $120 per month to a property management company, that lea\/es you with a net loss each month of $270 which doesn't seem too bad....UNTIL....you multiply that times 12 months making it a $3240 a year loss. You also ha\/e to figure in that you are probably only going to hae a 12 month lease and each time you re-let it you will ha\/e to do repairs and make ready...so let's say $1000 to get it cleaned, painted, and repaired. Then you ha\/e to find another tenant...hopefully through a professional real estate agent....and that may take a month or two so you just took another hit. You said you are just getting your feet wet...but even at that the market there would ha\/e to increase 20% in order for you to recapture the $50K recent loss in property \/alue. How long with that take? Niether of us can answer that question...but I will say this...if you take the equity and re-in\/est here...now...you probably can re-capture that $50K in a much shorter time. All you ha\/e to do is look at the growth rate here and you shouldn't ha\/e to ponder it too much. Off the top of my head, I can't think of any of the Austin Metroplex that hasn't shown an increase in the last few years....it's been amazing!
Investor? If you mean in the sense of holding onto to this property for the long term, I'd say no. I'd probably sell once it climbs 20% back to the 300k. Would I invest in the same property today as a rental? No, I don't think so. To be honest, I am fairly ignorant when it comes to real estate investing. My ideal scenario I think would be to own a home to live in and maybe have a rental property or two? Just to try to build a little wealth for the future.
I am thinking if I rent it, I would refi as owner occupied (at this time would be near or same interest rate). 80% of $250k would be $200k. Pay off the $125k note. Next step would be purchase a home in Austin/Buda to live in, then go from there.
I think Dena Davis mentioned 20% down for an investment property rather than little or now down, I would love to hear the rationale. How do I determine a good investment property numbers wise. ie purchase price, down payment, expenses and rent receipts etc? Just looking for rough numbers.
Without a moment's hesitation, I would recommend that your sell your Las Vegas property and pocket the profit. Relocate happily to the Austin area and reinvest the money. It is a college and high tech town, and your rental property should do well.
It is also wise to have investment property which you can manage easily.