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)