All Forum Posts by: Andy Kogut

I've researched and drove around Austin quite a bit. It's one of the trendiest markets in the country and because of that the priciest market in Texas. You get more for your money in DFW. Rents are not that far apart, maybe a little higher in Austin. The bet is that you will get more appreciation in Austin but a lot of that is already built in to the current prices, who knows how much more premium you will get, comparatively speaking.

A side note is that I believe Austin has less of those annoying foundation issues than DFW (and Houston for that matter). Almost always fixable but cuts into your margin.

lol, Will. How's the SoCal rehab market treating you? I lived there for 26 yrs. Cashed in my chips in 06.

Good input all around. I'm leaning toward Dallas because I know the area better, but Houston intrigues me because of the strong economy and there's just seems to be a lot of fixer inventory there. I remember back in the late 80's, after the oil bust, when you could buy subdivision houses there for 5k a pop. I wish I would have stocked up on those.

Thanks Waylon, that is useful info. By MUD I'm guessing you mean multi unit development? If you Google it multi user dungeon comes up. lol. I'm more familiar with PUD (planned unit development) - maybe MUD is a more common TX term.

I've found that a strong market creates more bidding competition on the buy side and compresses margins even though you are getting some or all of it back on the sale with higher prices. Don't think you can benefit both ways.

Good points about the prevalence of HOA's and higher insurance.

Thanks, Eric. I may take you up on that as I get closer to taking action.

Thanks guys. I was actually trying to find out if there are any differences in profit margins between the two. Not so much zoning issues. I guess it's not easy to find someone with rehab experience in both areas since most people naturally focus on one area.

I was asking because Houston seems to have more distressed properties which may affect the sales prices - leading to lower margins. Maybe not.

Thanks, Jon. I actually know both areas somewhat, have done a couple deals in DFW. Am looking at Houston and wondering if anyone with rehab experience in both areas has any more input.

Anyone here with experience rehabbing in both Dallas and Houston? Are the margins about the same or do they differ? Which do you prefer?

oops wrong forum