Great investing areas in Central Texas. (Based on my research)

[Caleb L.]

Hi Y'all! 

I thought it would be great to share some data I've collected about some of the best cities to invest in in Central Texas (in my opinion) 

Disclaimer (Sorry, I have to do it): The opinions I share about each city should not be your deciding factor in deciding where you should invest. This is an overview of each city and my opinion on it, which should not be your deciding factor!

Now that that's out of the way, let's do it!

City 1) Georgetown, TX.

a. Growing population. (Always a plus, right!) ;) 

b. Growing jobs.

c. A little on the expensive side. (But still great deals can be found)

d. Lot's of great attractions and charm! (Hiking trails, Georgetown Lake, etc.)

Georgetown is about to experience a HUGE job and population spike! Here's why. Big companies are starting to build big buildings in the city. Companies like, Apple (which is building an over $1 billion dollar campus), Academy, Hertz, Jason's Deli, etc. Which will all increase jobs and population by about 15,000! The median house price is $296,200 today.

City 2) Hutto, TX.

a. Growing population. (Hutto is growing naturally with a strong up trend in population)

b. Great steady job growth!

c. You can get almost the same rent as you could in Georgetown for a lower house price.

d. Great city with lot's of charm and some attractions. Great place to raise a family.

Hutto, Tx is a great little city with lots of charm and growth. People move there for the location and steady jobs, along with the housing prices. The median house price is $220,500 today.

City 3) Leander, TX. 

a. Great population growth. (Leander is pretty close to Georgetown, TX. Which means it will be affected by the new buildings and job growth)

b. Steady job growth.

c. Great place to raise a family! (Property prices are a little lower than Georgetown's.)

d. Will be affected by Georgetown's growth. 

Leander is a great place for families, with steady jobs and a growing population, it's a great place to own a single-family rental! Leander's home prices are pretty good for the most part, with a median house price of $221,100.

Conclusion: These are some of the strongest growing, healthy cities in Central Texas. With great economics and relatively good housing prices.

Remember, these cities may not fit your criteria. These cities seem good in my opinion, but you will have to dig deeper to be sure one of these cities fits your criteria. 

I hope you found this data helpful in your search for rental properties in Central Texas! 

Thanks Y'all!

[Joe Scaparra]

Great Thread, now let me get on my soapbox.  If you are now or want to be a real estate investor, the absolute first thing you need to decide is what is your investment goal and the Why that is connected to it!    That will guide you to either becoming a flipper or long term buy and hold.  

Let me focus you a little more.  My real estate investment goal is to buy and hold long term with positive cash flow day one! My WHY is because I want to secure my retirement with predictable and sustainable income to allow me to live a HIGH STANDARD of Living while being financially independent.  Flipping properties involve higher risk and is dependent on the real estate profits to continue to grow year over year.  Buy and Hold investors could care less about the direction of the real estate, in fact, we would rather it go sideways or decline.  Prices of real estate fluctuate up and down but low-end rents (950-1200) are steady in any market good or bad in the Austin MSA.  Know your market, know your product, and know your risk.

Because I am a buy and hold, positive cash flow, minimal risk investor, there are some things I care about and some I absolutely don't.  But I know my market!!! And I take advantage of the positives of the market.  For example, I DON"T CARE ABOUT THE SCHOOL QUALITY in the Austin MSA.  Why you ask?  Because my market CARES LESS ABOUT SCHOOLS!  Because I CARE about POSITIVE CASH Flow it leads me to buy multi-family (duplexes primarily), less hassle than 4 plex and up.  My rents range from 950-1250 per unit.  A lot of my renters are millennials who don't have kids; or young families who are just trying to survive day to day and just want a safe, clean, nice place to live.  I like 2 bedroom units over 3 bedrooms.  Easier to rent, per sq ft better price, and I have fewer people living in my units!  Turnover is so much easier!  

Also those who say MF cash flows better than SFH are correct. But they are wrong when they say they don't appreciate as fast compared to SFH. In very slow demand areas you may be correct. I began buying duplexes in Austin in 2005. They were a dime a dozen and sat on the market months and months. But the low income sector has been ignored since 2008-2010 recession and duplexes are the HOTTEST COMMODITY IN THE AUSTIN MSA. When a duplex comes on the market it is a frenzy to get your offers in. I will go on record today to say the HOTTEST properties from New Braunsfels to Waco along Hwy 35 are duplexes.

I have properties in most of the cities mentioned in this thread.  2 Duplexs in Round Rock, 1 Duplex in Georgetown, 1 Duplex in Taylor, 2 Duplexes in East Austin and 1 duplex in North Austin.  I'm sorry to brag but NO ONE knows duplexes in the AUSTIN MSA better than me.  I can walk the talk.  I have been a pure real estate investor since 2003 all multi family, all duplexs execpt one 4 plex.  I have been a buyer since 2003 and have yet to sell one property.  WHY?  Because it doesn't fit my goal or my WHY.  I want Predictable, Sustainable Income to satisfy a high standard of living till the day I die.  Positive Cash Flowing Multi-Family does this quite well.  If your betting on the race, take the tortoise, the hare burns out, has great burst but takes many breaks and loses the race.  

I bought one duplex in East Austin 6 years ago for 70k and I could have flipped it the next day for 120k.  That would make a  good Christmas Party brag, eh.  But instead, I put 10k in it and have averaged about 16k profit each year for 6 years and the property is now worth 350k.  You tell me, what was the better play, buy and hold or flipping.  Yes, I get you; if you could find those deals every day for 10 years straight then yes that's the better play, but my friends those deals are few and far between.  I never go hungry around my house, plenty of food, come on by.   

I will close with this, I am not a realtor, loan officer, or a lender.   I am a real estate investor who loves talking about real estate with no conflicts of interest that involve selling anything!  Good luck my friends, Cheers!