what is rental market like in austin for a $700K -$900K house? good investment?

Asked by , Sat Sep 22, 2007

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Dena Davis, Agent, Austin, TX
Wed Nov 28, 2007
These homes do not make an easy investment . Most people in the market to rent a home like that will be next years buyers of an upscale home. Unless you are buying this significantly under market value--- I would be careful.

I like homes that are well under the median family home price yet still semi centrally located.
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Paul B. Perez, , Austin, TX
Mon Oct 22, 2007
Here is some good news about the sales for that price range, and I would suspect that the same can be said about the rental market. Keep in mind that there are many builders and businessmen coming in and out of town for extended periods of time with the influx of luxury construction. They are going to be leasing these properties, but you can also count on solid appreciation while figuring your extended vacancies.
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Brian Eddins, Agent, Norman, OK
Thu Oct 18, 2007
it depends on location. but typically in the austin area you can rent an 800K prop. for about 4-5K per month. it all depends on location. but typically people that own property over 500K have a substantial amount they put down. the market is actually fairly good for hight end properties as long as you can float it for a few months. they usually take a little time to rent. good luck.
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Perry Hender…, Agent, Austin, TX
Tue Sep 25, 2007
http://www.postlets.com/res/225417... It's a waterfront property that is underpriced by $100K per a recent appraisal.
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Perry Hender…, Agent, Austin, TX
Sat Sep 22, 2007
I assume you have 20% down on those amounts. For $120K down, you get (3) 3-2 homes on a golf course, rented for the next 24 months at $2000 per month. The price $188,100 with closing paid. Built in 2001, and renevated in '07. Hw floors, granite, and cash flow. Everything you'd want in a bread and butter home.
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Bruce Lynn, Agent, Coppell, TX
Sat Sep 22, 2007
That's the very high end of the market. I've seen one investor focus on this market and be successful, often with executives who are on the 2-3 year move plan, sometimes with foreign executives. It's nice to have the rent paid like clockwork from the company till and not depend on the renters themselves to pay. However his homes tend to sit vacant for months while he waits for these people to move. My suggestion is to focus just below the median home price. Typcially a much better market for rentals in that price range. Remember at $700,000 you need something close to $7000/month rent for the investment to make sense. Can you carry the mortgage for 6 or 8 months at $7000/month?
Web Reference:  http://www.teamlynn.com
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Brandie, , San Francisco Bay Area
Sat Sep 22, 2007
That's higher end than my Austin investment home. I bought in an area called Bauerly Ranch, but we like Cedar Park and Round Rock as well. For mid-to-high 200's you can get a very high quality home in a master planned community that will attract a very high quality renter.

Depending on your goals, you may want to consider buying multiple rentals - and perhaps in other markets to provide granularity in your portfolio.

There are several great market my company has researched to determine viability for growth/appreciation.

To thoroughly understand a market’s potential takes time and expertise. There are a number of factors to be considered to determine the future economic viability of a market, including:
• Population growth – short term and trends
• An upward trend in job growth
• The presence of large, sound, industry-diverse corporations (Fortune 500 in particular)
• Future plans for additional corporate entities
• Availability of State and Local government jobs
• The presence of cultural activities – music, art and nightlife
• Leisure interest and recreational activities, such as golf, hiking and athletics
• The development of retail outlets and restaurants
• The quality of local school systems
• The natural path of growth within the metro
• Social and political issues that impact supply and demand, i.e. urban growth boundaries

Hope that helps!

Brandie Young
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