Thoughts on Central Texas Investment Opportunities

[Michael Watson]

Hi all, 

Long post so please bear with me... I have two questions: (1) I live in South Austin and have been shaking the trees for about six months trying to find a deal to buy. I am interested in SF, duplex and up to 8-plex. I have been looking as far South as San Antonio and as far North as Waco and ~ 20 miles East and West of I-35, but nothing seems to be a reasonable investment at this time. Key factors being the average time on market (very limited), asking price, rents for my given search area, etc. I understand that the 1% rule doesn't apply in these markets as the rents have not caught up to home prices and I am fine using IRR. Is anyone finding deals within the past 6-months that are available? By available I mean do they make sense to purchase, rent, and receive a reasonable return without pinning hopes on the real estate market continuing to soar in Central Texas?

(2) Is anyone interested in potentially partnering on a JV to purchase some land within the year and build duplexes? I am specifically looking in the Buda area as there is a real shortage of homes there. I understand building costs are exorbitant at this time and I would be fine purchasing the land and holding it until some costs ease. Specifically lumber.

Thanks for reading and please let me know if you have any input or interest.

-Mike