All Forum Posts by: Aaron Gordy

@Jackie Nyambura Everett

The hill country is a vast area but I am active in the areas off 1431. There are some areas of the hill country that are very difficult to develop though for a number of reasons. Send my direction. Thank you!

I have found some landlords like month to month leases so as to give them flexibility to keep up with the market.  Most landlords prefer long term leases though. If the tenants are in a month to month lease and the landlord prefers it then you don't have to do anything as the lease should renew on a monthly basis, but it really depends upon the existing lease. 

@Ofir R.

I am selling a sfh in the georgian acres area. Gentrification all around.  Its a 4x2 around 1200 sq ft, Big lot.  Same tenants for 7 years. I leased them out when I bought it. They want to stay. Solid tenants. Solid property. Low property taxes.  Wanting to 1031 into 4plex or small multifamily. 

Its simple. Its when I can get a higher rate of return elsewhere risk adjusted. Its a math game that is a based upon your own situation. One can calculate the expected roi based upon cash flows and appreciation and that is fairly easy to calculate. It gets a little more complicated when one factors in income taxes.  Real estate has the 1031 exchange gift and the many write offs that makes it preferable for many people. Its really a math game. 

@Scott McGadden ... https://www.kiplinger.com/taxes/what-the-texas-property-tax-...

The folks that are on the ground know. @Jordan Moorhead

I had written out out a response that was documented with statistical evidence across the asset classes that are good ones... but on 2nd thought. No. More for me and my company. Stay away. : )

Opinions with out data is ...... opinions. Is the average vacancy rate of 15% for Houses? Apartments? Industrial? Office (its higher than 15%  and is roughly 23%https://www.commercialedge.com/blog/national-office-report/)? Retail (retail is very good btw)? and so on. Also some submarkets are doing very well in several of the categories above. There is a reason why Blackstone is now one of the largest commercial owners in the metro. They aren't dummies. Being a contrarian has usually played out well historically or you could look in the rear view mirror in a year or two and sang Coulda, woulda shoulda : ). 

The property tax in hutto is not 1.7%. Its 2.1624 in some submarkets. If a new builder is suggesting its 1.7% in hutto then you should be cautious. Hutto due to samsung

@Ali K. I think that areas where young folks enjoy living is probably best given that affordable housing is a real issue in the metro. If you study the demographics of the metro its super easy to deduce that younger folks are having difficulty affording rent and need a room mate or two. Focus on that area, imo. If your strategy is strictly mtr then consider areas where traveling nurses and other similar occupations prefer. The riches are in the niches. Higher than inflation appreciation will occur where demand outstrips significantly supply. 

As of today there are 217 active duplexes on the austin mls. Some are priced at good multiples and some are asking for too much. Given that there will probably be a interest rate decrease or two over the next few months then at that point these will start to look enticing.