Is Austin, TX market too hot? Is it sustainable? Thoughts?

[Ravi K.]

I hope all my fellow BP community are safe and thriving. I have been part of BP for over 8+ years with very minimal activity as It's been super busy building my multifamily portfolio and barely got a chance to log in to BP!! Sorry!!

With that said, I am trying to poll and compare notes on what are people's thoughts on what's going on in Austin and what are you doing to make sure your deals are having enough risk mitigations. 

My thoughts: Austin still an amazing market even though prices are a bit crazy (maybe super crazy;) if you are able to find good deals in the right location! PLEASE YOUR THOUGHTS!

- Don't go overbidding like many others are doing, buy off-market below their intrinsic value with a room of at least $25K/door upside with long-term vision vs. short term vision. Hey!, It worked for Warren Buffet (buy at a discount and below the intrinsic value of a company and then add value to further improve/increase) and it applies to real estate as well.

- I would say focus on high-income sub-markets (For Austin North/North-West, but it applies to any market)

- Don't try to do land-banking unless you have 10+ years of holding as you never know the market cycles!

- Focus on the right asset classes, types and follow the trends (ex. Right now, millennials and even retiring people are preferring mixed-use developments where they can walk to work, restaurants, shopping etc)...Pick the right focus that works for you.

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Also, let's share any exciting projects you may be working on at this moment in the Austin, TX market/sub-market (please don't post all details and links, etc, just very high level as moderators might block the thread treating it as marketing your deal!!

- I am doing an exciting 2000+ unit mixed-use development project(actually a combination of three projects) in the Austin metro with unique features like crystal lagoon etc! 

Good luck everyone! and let's stay safe.