Beginner in Austin, still market potential?

[Kamrava Pirouz]

Hey all, I graduated college a year ago and moved to Austin a couple of months after. I wasn't aware of the Austin market until after I had actually settled here. For the past few months I've been eager to begin my real estate investing here in Austin. However, I'm not sure if the market is still as promising as it was 2-3 years ago. I've been skimming Round Rock and Pflugerville, both of which seemed to have potential, but I was later told by a few friends that right now is not the right time to buy.

My goal is rental + appreciation. 

Any suggestions? 

Also - would love to grab a coffee with a local investor! 

[Jose Matuk]

Hi @Kamrava Pirouz, welcome to the forum! I lived in Austin for 4 years and had to move out a year ago because of my job. I purchased a personal home in 2015 in Pflugerville before I was into REI. What I can tell you is that ever since I moved out I've had it rented, and even though It's not cash flowing (or was that my intention back then), I'm breaking even and it has appreciated significantly. I don't know how much higher it can go though, and that might be the reason your friends don't think it's still a good time to buy.

I'm now a lot more informed and would probably look for better deals in different (older) parts of Pflugerville or RR, I think there are some pretty good ones still out there if you put the time and effort; depends on your criteria but I would look for something in the 120-180k range, not above that.  Maybe look at Cedar Park and Georgetown too. 

On the other hand, I think Austin is much more difficult, there was a huge wave of fix and flips, specially in the east side of downtown.  But I think it's still hot, people are still moving there, and there's a lot of demand for places. 

There are a lot of great guys from that area here who might chime in.

Best of luck!