SFR in Kyle or San Marcos - same builder

[Sabuj Banerjee]

Hi All,

I recently sold an investment property in CA and am looking to do a 1031 in a landlord friendly state such as TX. My primary goal is appreciation over the next 5/6 years, cashflow positive preferred but cashflow neutral at a min.

I am considering the following options:

1- Purchasing a new duplex from Two Ten Communities in Buda. Any insight on this builder ?

2- I am also looking at Lenar homes in Plum Creek, Kyle and Whisper in San Marcos. Trying to figure out which one to pick with cashflow and future appreciation in mind?

a) Plum Creek, Kyle - 1900 SF, 4 bed 2 bath, corner lot, large backyard, great school district rating

b) Whisper, San Marcos - 2300 SF, 4 bed 3 bath + study room, moderate backyard, OK school district rating

The Whisper property is about $20K higher priced. Both are cash flow positive.

Any thoughts or comments on these above?

[Jordan Moorhead]

@Sabuj Banerjee generally Buda is seen as more desirable than Kyle but both areas are growing like crazy. Be careful with new build communities that won't be fully built out during your hold time horizon. Trying to compete against a builder to sell your existing build is extremely difficult.

If there is new construction similar to yours around what you're selling you'll be at a disadvantage unless the market is scorching hot again and the builders have waitlists like they did in the recent past.

Let me know if you have any other questions or need help in those areas. We sell a lot in Kyle/Buda and I live on the south side of Austin close to there.