home buying for rental purposes in 78613

Asked by vasheel2, Cedar Park, TX Sun Jul 14, 2013

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Anne Schramm, Agent, Round Rock, TX
Sun Jul 14, 2013
It would be difficult to determine where your focus should be without more detailed information that would help with that determination.

There are many factors that are important when determining an area of focus. The most important factor will be what you would like to pay at a minimum to maximum price. Following that; which areas do you deem to be unacceptable along with the features and size of a home. The Austin MLS system allows for search parameters to be set and the results of those searches utilizing those parameters would be available for review. As the search continues, you can further refine the results and determine which area will best suit you.

Because the price of the property is ultimately what determines what is acceptable; The first step in this process is obtaining a pre-approval, or as was also recommended, pre-qualified (definitely one of the best positions from which to negotiate) for a mortgage. This information will detail the possible interest rate, amount of down payment and the amount of the loan.

Because not all real estate buyers are familiar with the process to obtain a loan, the advice of a real estate professional can be of great value. The real estate professional can assist you with any questions you may have, along with assisting you with discovering what other questions that may need answered and direct you to different sources of information that will help with the process.

Any of my agents or I would be happy to help with the process.

Anne Schramm, Broker
GRI, TAHS, CNE
TREC LIC# 465302
Realtor -- Owner
Dominion Estate Network Realty
Anne@DominionEstate.Net
512.919.9503 Office
512.785.4157 Mobile http://www.dominionestate.net
0 votes
vasheel2, Home Buyer, Cedar Park, TX
Sun Jul 14, 2013
Thank you all for responding.

As Cedar Park/Avery Ranch and other Round Rock areas are new to me, I am trying to focus on good schools, good return as in cash flow, and resale values down the road.

Based on the above criteria then, what pockets of these areas/subdivisions to focus on?
0 votes
Anne Schramm, Agent, Round Rock, TX
Sun Jul 14, 2013
There are several options when considering the purchase of property for rental purposes. The most important consideration is what type of return do you require in order for the purchase to be profitable. Second to that is finding a property that is priced correctly for your needs and doesn't contain condition issues that could affect your ROI.

Of the properties that would be most likely to support an acceptable return on your investment (ROI) would be those that have financially distressed sellers (short sales) and foreclosures. Not all foreclosures are created equal. The HUD, FanneMae and FreddieMac properties have special incentives and considerations to owner/occupants to allow them the first opportunity to buy. An investor-buyer would have to wait for the requisite period of time to pass prior to being eligible to make an offer on these types of foreclosures. However, there are other foreclosures that don't have those requirements and being knowledgeable the properties that are exempt from the owner/occupant rule, knowing how to find those properties, and being prepared to make an offer in an expedient and proper manner is of utmost importance in presenting an acceptable and successful offer to purchase.

Additionally; as an investor there are different requirements for financing that need to be considered, if the investor isn't paying cash. There are different ways that investors establish funds for these purchases. There is the traditional loan process with a mortgage as an investor, and for those that have significant financial backing, the use of "hard money" is a great advantage. These are a couple of the avenues to be explored when considering financing.

The Cedar Park and Leander area currently are stable. Cedar Park has experienced a slight upswing in values of 5% - 25% vs. in June 2012 vs. June 2013. Leander has remained stable, with a 0% - 5% increase in values for June 2012 vs. June 2013. This is important to an investor when making a purchase as the market trends can make or break an investment.

Again, not just the purchase price of a property is important. Knowledge of how housing has been affected by the economy and the effect that this has on rents needs to be examined. Currently there is an active leasing market, which is evidenced by increasing rents throughout the north central Texas area. Knowing what the market is within the individual "pockets" is important as not all areas respond evenly. This calculation of rental income, cost of the purchase money, cost to maintain the property (taxes, HOA, repairs, leasing fees, vacancies, etc...) and personal time are part of the equation for the "net" that a rental property will provide.

In my opinion; The Cedar Park area is a great area to be considering for investment property at this time. Use of careful and calculated consideration will increase the opportunity for a secure and successful investment.



Anne Schramm, Broker
GRI, TAHS, CNE
TREC LIC# 465302
Realtor -- Owner
Dominion Estate Network Realty
Anne@DominionEstate.Net
512.919.9503 Office
512.785.4157 Mobile
http://www.dominionestate.net
0 votes
Don Groff, Agent, Austin, TX
Sun Jul 14, 2013
Hello,

Yes, this area (I live and work here) is a great area to purchase a rental home. I just closed a client who purchased a rental unit in Leander just a couple miles north of Cedar Park and we immediately were able to rent the property with positive cash flow right after closing.

I am a licensed Realtor and Texas Mortgage Broker so if you have any questions on the different financing options or would like to take a look at anything and are not already working with somebody please let me know. I can help you run numbers based on current interest rates to see what your net or out of pocket expenses will be not only on the initial purchase but on the month to month once the property is leased out.

Best of luck to you.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference:  http://www.AustinListed.com
0 votes
Jeffrey Nyla…, , Austin, TX
Sun Jul 14, 2013
Yes, I specialize in this area and I highly recommend it! Go for it now before interest rates go up!!!!

Sincerely,

Jeffrey Nyland, REALTOR®, GRI, SRS, ABR
The Nyland Team
Prudential Texas Realty
512-626-8552 (Direct)
512-267-3640 (Fax)
Jeffrey@NylandTeam.com
http://www.NylandTeam.com
Jeffrey Nyland TX AUC# 16644
Exceeding Expectations!
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