Leander, RR or Austin Investors?

[Mena Soliman]

Hey, I have been looking into that market for some time now. Austin is such a great market and I can definitely see myself moving there soon. I am looking to connect with local investors to learn more about the market and get your insight. 

Firstly, I would really appreciate it if you can share with me any truth worthy local agents, property managers, and leaders you have worked/interacted with. I would love to talk to them and let them know that I was referred by you 

Secondly, what do you think of the Leander market? there is a duplex that I am looking at. it is good but doesn't meet the 1% rule, it is more of a breakeven deal. it got its pros and cons:

pros: 

-walking distance to a good school

- currently renting at the max potential and seems to be updated so not much rehab is needed

cons:

- on a major street

- not much improvements are needed so it will be hard to add value and recoup my initial investment plus it is not really a cashflow maker. 

All the "boots-on-ground" agents I have talked to encouraged me to go for it as that it very rare to find 1% rules properties in Austin MSA and this will be appreciation play. is this true? do you again for breakeven or a bit more in such a hot market like Austin MSA. or should I be patient? 

The challenge is that this would be my first investment property and out-of-state so I would love to hear some of your opinions besides the agents (who are incentivized to make a sale) 

Thank you so much for your help. btw, I just joined BiggerPockets and its like heaven for RE investors, feel free to connect with me (or my account would be so lonely!!)

[Jeremy VanDelinder]

Those that have told you the 1% rule is rare are absolutely correct. They can be found (I have had a few) but they are highly distressed--and thus a good deal or a value add proposition. If you can cash flow a property, you are in good shape as you capture the solid appreciation in this market. Good luck!