Investment property in Austin, TX

[Hira Man Shrestha]

I am planing to buy a investment in Austin,TX area. Mostly probably around Round Rock area. This is my first time buying a house or investment property. I live in SF and make sound 150K + and planing to move to Austin in next year or so. My budget is $200k and I will put 20% down. Is it a good idea to buy and investment property in Austin,TX. Should I get house or a condo? Since I am remote how would I handle issue with renters like something breaks or renter not taking care of the property etc? What are the things that I need to be aware beside the mortgage, taxes, closing cost?

[Costin I.]

Your questions are quite general, you'll need to get more specific for best results.

Is it a good idea to buy and investment property in Austin,TX? It is as good as in any other area, if it meets your search criteria and investment goals and you know how to evaluate deals properly. Are you clear on these 3 aspects?

Should I get house or a condo? Same as above.

Since I am remote how would I handle issue with renters like something breaks or renter not taking care of the property etc?

• Get an excellent property manager (warning: unicorn alert!).
• Learn about property management yourself so you can manage the PM. Resource: property management books on Nolo, Amazon, and here on BP.
• Learn about proper insurance, management, contractors, etc. - read Nolo Every Landlord Property Protection Guide.
• Read RelucantLandlord.

What are the things that I need to be aware beside the mortgage, taxes, closing cost?

• HOA and MUD costs.
• Vacancy costs (8%+)
• Utilities
• Repairs and incidentals (small items, like a toilete repair or fence small repair, likely to occur more often)
• Capital Expenses (big items, like HVAC or roof, rare to occur, but with big impact)
• Property Management (10%+)
• CPA and Attorney costs
• Tuition (you'll pay for that in either mistakes, time, effort or money)

[Tyler Roicki]

@Hira Man Shrestha 

While most of your on market options in Round Rock are going to be $200k+, there are a few at or under the $200k price point you are aiming to achieve. Austin has a growing economy and it would make sense to invest if the property could cashflow or at minimum break even, if your plan is to hold out for the longer term and bank on appreciation while the debt is being paid down. For rental purposes, my perspective is that it makes more sense to invest in a house. You'll save on HOA fees and typically won't have as much of a concern over special assessments since with houses since you're not sharing a building with anyone. Managing from afar, you'd want to have a good property management company / property manager like @Brad Larsen to assist you with handling any tenant related issues. Aside from mortgage, taxes and closing costs, I'd factor in insurance, a budget for maintenance related items and factor in a % for vacancy.

[Costin I.]

Your questions are quite general, you'll need to get more specific for best results.

Is it a good idea to buy and investment property in Austin,TX? It is as good as in any other area, if it meets your search criteria and investment goals and you know how to evaluate deals properly. Are you clear on these 3 aspects?

Should I get house or a condo? Same as above.

Since I am remote how would I handle issue with renters like something breaks or renter not taking care of the property etc?

• Get an excellent property manager (warning: unicorn alert!).
• Learn about property management yourself so you can manage the PM. Resource: property management books on Nolo, Amazon, and here on BP.
• Learn about proper insurance, management, contractors, etc. - read Nolo Every Landlord Property Protection Guide.
• Read RelucantLandlord.

What are the things that I need to be aware beside the mortgage, taxes, closing cost?

• HOA and MUD costs.
• Vacancy costs (8%+)
• Utilities
• Repairs and incidentals (small items, like a toilete repair or fence small repair, likely to occur more often)
• Capital Expenses (big items, like HVAC or roof, rare to occur, but with big impact)
• Property Management (10%+)
• CPA and Attorney costs
• Tuition (you'll pay for that in either mistakes, time, effort or money)

[Linda Osborn]

@Hira Man Shrestha, Did you get your questions answered? Feel free to reach out if you have specific questions you want to explore further with regard to investing (or not) in the Austin area.