Leander vs Roundrock for Austin Real Estate Investment in 300k

[Romil S.]

Looking to invest in SFH in Austin suburbs for 300k max for SFH. I am getting options in both Roundrock and Leander area.

1. Which one is better from consistent rental / finding reliable tenant perspective? Leander OR Roundrock?

2. Which one has better potential for appreciation ? Leander OR Roundrock?  It seems Distance wise both are similar from Domain and tech companies

3. I am hearing that for investing in Texas, it is important to find newer homes (aka newer than 2010, as resale wise newer homes would hold more value down the line) - how true is this ? 

4. New Construction and closer to Costco / Walmart but almost non-existant yard vs 2008-2009 homes with 6000 sqft lot - which one would hold more value down the line? Is it important for homes to be closer to shopping amenities and work ? would 20 mins vs 30 mins commute make much diff?

5. Does it matter in Texas demographic to have single storey vs 2 storey homes? which one is more prefered ? 

6. If 2 storey , how important is it to have 1 full bedbath on floor 1?

Any pointers on this will helpful. Thanks! 

[Dan Burstain]

Hey @Romil S.  Here are the answers to your questions-

1. Which one is better from consistent rental / finding reliable tenant perspective? Leander  but if you price it right no matter where in the Austin area you are, you should rent quickly.  We are at 96% occupancy.

2. Which one has better potential for appreciation ? Leander but it really depends where in Leander and where in Round Rock.  So it is a bit of a trick question.  

3. I am hearing that for investing in Texas, it is important to find newer homes (aka newer than 2010, as resale wise newer homes would hold more value down the line) - how true is this ?  The drive towards newer homes for investors has been that there is a lot of building going on and pricing is still very competitive with new homes making the difference between old and new pretty slim.  So when you figure in CapEx more and more investors are going towards newer homes.  That being said, property taxes, HOA, etc. all play into that and those are higher in new developments usually.  In the end, location will win out.  Flipping continues to be big here so buying old and rehabbing is always an option if you buy in the right location.  

4. New Construction and closer to Costco / Walmart but almost non-existant yard vs 2008-2009 homes with 6000 sqft lot - which one would hold more value down the line? Is it important for homes to be closer to shopping amenities and work ? would 20 mins vs 30 mins commute make much diff?  The younger buyer wants a yard big enough for a dog but small enough that mowing it takes 10 minutes.   So location over lot size.  

5. Does it matter in Texas demographic to have single storey vs 2 storey homes? which one is more prefered ?  You are always better off with a single story but if the 2 story has a master down that works too.  That being said, I live in a two story with all rooms upstairs.  I like it but when I go to sell I will have eliminated an entire demographic (like most baby boomers) from considering my home.

6. If 2 storey , how important is it to have 1 full bedbath on floor 1?   Important but you don't have to appease everyone to have a great investment.  I will have no problem selling my home, if and when I do, because it is in a very desirable location.

Hope that helps.