Investment Markets in Texas

[Daniel Chappell]

Hello all! My fiancé and I currently live in the Austin, TX area and are in the process of selling our primary residence in Kyle. We're fortunate enough to be staying with my parents while we decide what our next move is going to be, which will give us an additional $1500 per month in disposable income until we make our next purchase. That being said, we don't want to stay there for much longer than 6-12 months. It's looking like when the sale is all said and done, we'll have about $65,000 in the bank. 

We're torn between a few options and I'm hoping you more experienced investors can steer us in the right direction.

1. Take the $65,000 and invest in a more affordable market with the goal of leveraging the cash to obtain 2+ doors and begin my rental portfolio. I'm open to suggestions for what markets to look in, preferably in the state of Texas. The downside to this option is that we would then have to find a place to rent in our area for us to live in. I would expect to be spending around $2,000 in rent in our area. 

2. Take the cash and look for a property to possibly flip in the next 6-12 months to increase our capital with the goal of having enough to then purchase our next primary residence, as well as another investment property (BRRRR or flip).

3. Take the cash and look for a new primary residence and hope to take advantage of the rising appreciation rates in this area. I would like to keep our mortgage payment below $2500 which would probably limit our price range to around $350,000. 

4. Find a house hack in our area, although they are slim pickings. Duplexes in this area range around $400,000+ which we may or may not be able to get pre-approved for. When it comes to small multi-family, can we be pre-approved for a higher amount based on the future rental income of the additional units? 

5. Open to any other suggestions that you experienced investors may think would be a more effective use of this money!

Thank you all for your help!