Best Locations to Invest in Texas

[Lia Locarnini]

Hello!  I am curious to get feedback on the best places to invest in Texas.  I have been focusing my search on Austin suburbs like Cedar Park, Leander, and Lago Vista.  But, as I run my numbers to find cap rates, I keep finding that other cities far from Austin (like Flower Mound) would give me better returns.  The big difference is that Flower Mound commands much higher rents.  Yet, I know that a lot of CA businesses are moving to Austin, and I think rental rates will increase in these Austin suburbs. I am curious what other investors have to say about the future potential of some of these Austin suburbs.  Would you recommend I buy based on what my cap rates are telling me, or on the future potential of where businesses are moving?

[Ryan Kelly]

@Lia Locarnini You won’t find nearly as many foundation issues on the west side of the market as these homes are built over limestone, not clay soil. The foundation concerns start to pop up in central and East Austin. Leander and Cedar Park are booming suburbs with good schools, so very hot markets. Lago Vista is a bit far out and more of a retirement community on north Lake Travis. Still some good rental opportunities, but less of a commuter market.