After all of my research, the Austin area looks great. Ive just purchased 2 homes in Round Rock and 1 in Cedar Park. By my calculations, the rent collected should cover or at least come close to covering the PITI payment, which wasnt possible in the other areas I looked at, being Henderson/Vegas, Denver, and AZ. This is only possible due to the fact that I have "A" credit and put 20% down though. Average rent in the areas Ive purchased in are about $1100-$1300. Interest only payment fixed for 5 years is about $700, which leaves me 400-600 for taxes, insurance, prop management. Please be advised though that TX has very high prop. taxes, 2.75% and insurance tends to cost more (than California)
So 3 homes, about $160k/ ea, w/ 20% down. Hopefully little to no money coming out of my pocket. Hopefully some big appreciation in the next 5-10 years and cash out. But yeah, $160k cant buy me anything here in CA. Maybe a car.
I am not a genius, so I use everyone else's research. I look at the the Costco's, Starbucks, Ikeas, Dell (HQ in Round Rock), they put a lot of money and research into where they should go, and I tend to follow them. I strangely take a lot of comfort in the fact that MTV chose Austin as the home of one of their Real World Seasons.
I was somewhat indecisive between Austin and Denver, but the Austin area has one the nation's best school systems and no snow ( I figure when seniors move for retirement, theyd rather have a little heat than have to deal with snow). These are 2 markets that seem to have been unaffected by the "bubble", which means if there is a burst, these markets should be fairly uneffected.
This is just my 2 cents. Again I am no genius. Unless I make a lot of money, than maybe I am a genius :wink: Well I hope I was of some help to you. If not, just ignore me please.
