austin area rental market?

[Kevin L.]

Hi everyone, 

I'm from the San Francisco bay area and I'm just starting out in the real estate investment world and I'm really glad I found this website. I'm already learning so much from all of the experts on this site as well as the podcasts. so I'm thinking about investing in austin and have done some research on the different neighborhoods. so far, I've narrowed it down to the following neighborhoods. 78729, 78749, 78748. Since I'm not in Texas I was wondering what the locals think about these areas. My goal is to get a place and be cash flow positive ($100 ~$200) a month and hold the property for at least 5 years. Also, what's the best way to find rent estimate in those areas? 

Thanks so much! 

[Scott Sutherland]

You can still find some 1% properties in 78744 (southeast) or in 78758 (north). Those should still cash flow enough to hit your $100-$200 target and cover operational costs, some vacancy, and the unexpected repair.  Over time rates will rise and when combined with loan paydown, you'll start creating some equity.

You could always go the vacation rental route as well. Our rents for vacation rentals are roughly double what we'd get on a long term basis. But the management is much more active.