What are the best areas to buy investment properties currently where rent costs are much higher than sales costs?

Asked by Helpthanks, Austin, TX Wed Nov 9, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

20
Aj Properties, Home Buyer, New Jersey
Fri Jan 13, 2012
I am an investor looking to buy properties that are distressed ranging from $1,000 to $8,000 in a rising neighborhood to good neighborhood. Does anyone have what I am looking for?

Thanks,
A.J. Properties
ezpsolutions@yahoo.com
0 votes
Gary Ellis, Agent, Buffalo Grove, IL
Tue Jan 10, 2012
location location location! generally check out school reports to find places near the schools that also give good cummute time to locol transportation and shopping.
0 votes
Lizz Grimes, Agent, Austin, TX
Mon Jan 9, 2012
South Austin is hot for multi family investment properties. I just sent an investor client of mine a duplex that will bring in over $3k/ month and net just over $1600/ month in positive cash flow. Check out my site or please feel free to call me. I'd be happy to help you out!

Sincerely -

Lizz Grimes
512-659-2111
Web Reference:  http://www.lizzgrimes.com
0 votes
find me one
Flag Wed Feb 27, 2013
Stephanie Ze…, Agent, Austin, TX
Mon Jan 9, 2012
The outer areas such as Elgin and Del Valle as well as parts of East Austin, these areas can be great if you want something that you can rent quickly, if you can pay cash even better. If you don't mind driving a little farther away the profits can be nice.
0 votes
Brian Rayl, Agent, Dallas, TX
Tue Nov 15, 2011
Austin is a great area to invest in right now. Your best bet is to find a local real estate agent who is experienced in working with investors. If you are willing to look outside of Austin for investment properties, the Dallas area is a great area for investment as well.

Your question depends greatly on how much you have to invest, what your investment objectives are, and how "hands on" you plan on being.

Most investors currently are looking for more than 10% return on investment. That means that if you pay $100,000 for an investment home, the rent should be over $1000 per month to cover your payment, taxes, and insurance. Depending on how much you actually have to put into the home, you could consider buying a foreclosure or depressed property and doing some repairs and updates on it.

Hands on is also a huge question. Do you plan on being the landlord or do you plan on using a property manager? A property manager is a good way to avoid those 3am calls about a stopped up toilet, but it also costs you money each month.

An example of an investment home that I have listed for sale in Dallas: Home for sale for $70,000. Monthly rents run $1100-$1250 per month, depending on updates. After taxes, insurance, and property management costs, you are looking at about a 15% return on investment. This scenario is fairly common in the Dallas area because rental prices have been on the rise for the past 2-3 years.

If you are interested in looking at the Dallas real estate market for your investments, feel free to give me a call. If you want an experienced agent who deals with investment property in Austin, I have a friend there that I would be happy to refer you.

Brian Rayl
Keller Williams Elite - Dallas, TX
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
0 votes
1st Zero-Emi…, , Austin, TX
Fri Nov 11, 2011
How about a house for $165k that rents for $1400+ per month?
How about a Condo for $75k that rents for $700 per month?

These are your higher margin (cap rate) types you seem to be looking for. If you want to double the value, just buy another nearby.

Call me and we can chat about your goals and expectations along with the market.

Shawn Monshaugen
Keller Williams
512.330.1075
0 votes
Don Groff, Agent, Austin, TX
Thu Nov 10, 2011
Hello Help Thanks,

There are great properties all over Austin. I own several properties throughout Austin, Cedar Park and Georgetown. What you need to do is find one or several areas you are interested in. Do you plan on being a hands own landlord. Would you prefer to live near the property?

In any given area there are great values that can be good investments if you do your homework. That is the key. Each property stands on its own and needs to be evaluated as such. I recommend sitting down with several agents to pick their brain. Your Realtor can be your best friend and help you in many ways as far as providing the market knowledgeable necessary to make good decisions. If you would like to speak further about your situation and how I can help you not only with Real Estate but also with any financing questions you may have please give me a call or email me.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes
Rich Homer, Agent, NAPLES, FL
Thu Nov 10, 2011
You have a good start here but do not make the mistake of thinking your answer will come from these Q&A boards. You should be interviewing local Realtors from this website and then select one to work with in your area. Realtor selection is phase 1, finding property with your selected Realtor is phase 2. Good luck to you.
0 votes
Rob Abbott, Agent, Cedar Park, TX
Thu Nov 10, 2011
Hello,

We've been helping investors (and are investors ourselves) buy and manage properties all around Austin for many years, the last 5 years have been especially active as people from around the US flocked to Austin and the surrounding areas for Real Estate. I can tell you there is no '1' area, you have to have a vigilant realtor who can find you the deals when they come up, and you have to be able to act fast when they do (as the hottest deals won't last long). Therefore, there isn't one particular area that is going to be the best, the best investment is based on the price you buy the home for, not the area it's in. You'll want to find an investment home that you buy at such a low price that you can rent for a profit.

Now that said, there are some areas we wouldn't buy in due to schools, crime etc., which can be looked at once we get started working with you. We like North, Northwest, South Austin as well as Cedar Park, Round Rock, and even Leander for investment opportunities. Keep your mind open regarding area, and look more for the price opportunity. This requires a Realtor experienced with keeping you on top of the market ever day, someone experienced with the purchase of HUD owned homes, foreclosures and short sales as well, although you may find your perfect investment home for sale normally as well as we are in the heart of a buyers market.
0 votes
Brooke Hengst, Agent, Centennial, CO
Thu Nov 10, 2011
However, you might also check in some of the more established neighborhoods as well for a deal as I currently have a house up in NW Austin that is a rental. It does not cash flow all that well however it has been pretty easy to keep renters in!

Thanks,
Brooke Hengst
REALTOR, CDPE, The Elite Team
Your Castle Real Estate
bhengst1@gmail.com
(720) 988-5952
http://www.brookehengst.com
Web Reference:  http://www.brookehengst.com
0 votes
Brooke Hengst, Agent, Centennial, CO
Thu Nov 10, 2011
Knowing the number of student housing opportunities in Austin (I lived there for 7 years), I would definitely research the campus area as well as south Austin.

I would also link up with a great Realtor who has experience in helping people purchase investment property.

If you need any referrals, I would be happy to help as I still have several Realtor contacts in the area.

Thanks,
Brooke Hengst
REALTOR, CDPE, The Elite Team
Your Castle Real Estate
bhengst1@gmail.com
(720) 988-5952
http://www.brookehengst.com
Web Reference:  http://www.brookehengst.com
0 votes
Steven Nusin…, Agent, Austin, TX
Thu Nov 10, 2011
A great negotiated purchase price could open up a lot of opportunities throughout town meeting your criteria. My favorite area to focus would be South Austin. A beautiful area, great location, and affordable homes that rent in a matter of days with multiple applications.

Feel free to contact me anytime

Steve Nusinow
(512)922-7588
0 votes
Moe Paknia, Agent, Austin, TX
Wed Nov 9, 2011
I am an investor myself and specialize in HUD and REO properties. Although that Central Austin always is a good place to invest, however we really like North Austin for few reasons.
1- We don’t purchase for investment property at market price!!! We go after HUD or REO (Bank Owned) properties. I believe you make your money when you purchase not when you sell.
2- With our purchase point, we have already determine the cash flow of the property. and you will get better ROI (return on investment)
3- We see the most New activities are moving to North Austin including the most New Schools, new Highways, New minor league Hockey (Texas Stars), Schlitterbahn Water park and etc…

I hope this will explains a bit. If you need more information please contact me at 512-468-8788.
Thanks
0 votes
Anthony Cinc…, Agent, Cape Coral, FL
Wed Nov 9, 2011
Cape Coral FL.

With its recent designation as one of the best places to retire in the nation by CNN Money, its gentle climate, low cost of living and waterfront homes located on its over 500 miles of canals, many with gulf access there are ample opportunities for the investment property buyer.

It also has the 2nd lowest crime rate in the entire state of Florida.

If you would like more information on both the seasonal and yearly rental market please feel free to contact me. I work with many real estate investors and would be happy to help you locate a great investment property.

Also, the Fort Myers/Cape Coral area is one of only 4 metropolitan areas to see a trend towards stabilization of the real estate market.

Whichever area you choose I wish you great success!

Anthony.
0 votes
Perry Hender…, Agent, Austin, TX
Wed Nov 9, 2011
I own several investment properties on Austin and I concentrate as close to downtown as I can afford. When I get serious about looking I usually contact Perry Henderson, as I have found him to be as knowledgeable as anyone in the Austin area.
Donovan White
whitedonovan@att.net
0 votes
Jeremy Boos, Agent, Austin, TX
Wed Nov 9, 2011
Have you thought about the University area? Investment opportunities for campus area condos and houses exsist where the rents are pretty constant because of the high demand and it's truly a buyers market, so there are some deals out there, depending on how large you wanted to expand your portfolio. Never hard to lease in this area with the right timing and marketing, no matter what shape the property is in.

Good Luck to you!
0 votes
Lizz Grimes, Agent, Austin, TX
Wed Nov 9, 2011
Dear Helpthanks -

You're smart to be thinking about investing in Austin multi family right now. Money is so cheap and the housing crunch is creating a boom in the rental market. I am encouraging my investors to buy near UT, in the Eanes District or South Austin. Demand and rental rates will always remain strong in these central areas. There are a few good foreclosures in these areas as well. I am very familiar with investment properties and the purchase process as I have two myself.

I'd be happy to discuss this in more detail with you, please feel free to give me a call!

Best of luck to you!

Lizz Grimes
Keller Williams Realty
512-659-2111
lizzgrimes@kw.com
0 votes
Christopher…, , Austin, TX
Wed Nov 9, 2011
Cindy is right, all over Austin. One thing I would ask before making a suggestion would be what type of budget are we looking to stay around? Are you looking to finance the property or pay cash? Do you have specific goals you wish to achieve (i.e., certain Cap Rate, ROI, cash-on cash-return, etc.) ? If you'd like my assistance, please feel free to message me.

Best,
Chris
Austin City Living
0 votes
William Frie…, Agent, Austin, TX
Wed Nov 9, 2011
Home Buyer,
As previously stated, just about anywhere in the Austin MLS area good properties with good rental rates are available. Financing for buyers is tight and people are still moving to Austin, so rentals are moving quickly.

I've owned and managed rental properties for many years.
Give me a call or send an email when you're ready to look at some opportunities.

Bill
0 votes
Cindy Crawfo…, Agent, Round Rock, TX
Wed Nov 9, 2011
Dear Helpthanks,
Pretty much all over the Austin metro area. Rentals are in high demand right now, and purchase prices are low. I work primarily in the Round Rock, Pflugerville, Cedar Park, Georgetown areas, where there are many great investment opportunities. Contact me if I can help.
Cindy Crawford, REALTOR
Keller Williams Realty
cindycrawford@kw.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more