Market Conditions in 78727>Question Details

Pranshu, Other/Just Looking in Austin, TX

austin rental property

Asked by Pranshu, Austin, TX Sun Aug 26, 2007

where should one look in austin to find rental property that gives positive cash flow and reasonable appreciation? is that not a possibility in austin?

how about in san antonio or dallas?

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Paul said it best. It doesn't matter where the property is as long as there is good positive cash flow. I'd pick Austin over Dallas and San Antonio. If you want reasonable appreciation, stick with single family homes.

Carol Ann Pease
2 votes Thank Flag Link Sun Aug 3, 2008
Dear Pranshu,
I would stay in central or south central Austin. There are some pockets along 183 and MOPac that are good bets, as there are many employers and lots of shopping in this area so people want to live there. The thing is to make sure you get a reasonable price and that the property will create positive cash flow for you. Good luck!
2 votes Thank Flag Link Sat Aug 2, 2008
To be truthful, it doesn't matter where you look; it's always about the numbers. Don't look to appreciation to make your money, look for the opportunity! A simple rule that many of my investors use when considering a property is the 1 to 1 ratio, i.e. 190k leases for $1900 / month, if the answer is yes, then it's worth considering. We have just listed 3/2/2 town homes for 190k @ 2k per month. Cash flow of $237.00 per month, this figure includes insurances, management, taxes, etc. It makes me wonder why anyone would settle for barely breaking even.....
2 votes Thank Flag Link Mon Aug 27, 2007
I agree with Ki- this is a possiblity in Austin, provided you put 20% down. South Central and Southeast Austin should provide both cash flow and good appreciation. Look in MLS area 10n specifically- it is reasonably close to town and has a good rental percentage. Some portions of area 2 and area 4, around the intersections of Guadalupe and Lamar may also provide cash flow.

Stick with single-family homes for the best appreciation possibilities.

Steer clear of areas that have new development very close by: these could hurt your rental property's potential appreciation.
2 votes Thank Flag Link Sun Aug 26, 2007
I concur with Danny and add that I think the portion of area 2N close to 183 (as close as you can get to area 2 but across 183) is an area of $130k - $150k single family homes that can rent for $1100. So with 20% down you're at least breaking even. I personally purchased a rental property in this neighborhood this spring with just slight positive cash flow and am banking on the coolness and trendiness jumping 183 from Crestview and Wooten into Jamestown. I am keeping a close eye on this neighborhood for the first investors to come in and do urban moderately upscale rehab on these 1960's - 1970's single family homes. I cannot speak on SA or Dallas.
1 vote Thank Flag Link Mon Aug 27, 2007
Dear Pranshu,
I agree with Carol: single family homes or duplexes are easier to rent than multi-plexes. Property close to the university always leases, otherwise stick to the Hi-tech corridor on 183. Good luck!
0 votes Thank Flag Link Thu Nov 18, 2010
I would look in south Austin south of Ben White or southeast Austin.
0 votes Thank Flag Link Sun Aug 26, 2007
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