All Forum Posts by: Dan Burstain

If you are a lake person then Lago Vista.  If not, then Leander is probably the better investment.  All are great if offer the assumable loan, if you have the down payment.  Happy to go into detail about them.

Welcome Purbhi,

Happy to give you feedback and answer any questions on Leander and the Austin area in general.  I own investment property in Leander and manage investment properties in Leander for a number of clients.  DM with with any questions you have.

Just recently we have seen positive cash flow back in play.  New builds offering interest rate buy downs even to investors along with lower pricing have created positive cash flow new builds just 35 minutes from downtown, 25 to 30 minutes to the airport or Tesla factory.  DM me for more info.

Timing is right as positive cash flow has come back to the Austin area in the form of new builds offering interest rate buy downs even for investors.  I personally like the $200K price points with cash flow 30-45 min from downtown Austin to appreciate nicely.  There is also a play for the $400K places near Leander but those places won't cash flow without significant down payment increases.

A move from California to Texas could save a million dollars. Many Americans are opting in

Swapna Venugopal Ramaswamy USA TODAY July 4, 2023https://www.usatoday.com/story/money/2023/07/04/california-to-texas-move-rising-popularity/70374012007/

The exodus of people from California to Texas is picking up steam.

In 2021, it was the most popular interstate move in the country, with 111,000 people – or 300 people a day – headed to the Lone Star from the Golden State, a whopping 80% increase compared to 2012, according to an analysis of U.S. Census and IPUMS data by StorageCafé.

During the pandemic, as remote work became a reality for many, the trend of people moving from high-cost cities to more affordable areas began started taking root.

The number of people leaving the Golden State for Texas has grown by 36% between 2016 and 2021 while the migration stream from all other states to Texas did not change, rising a mere 0.1%, according to data from the American Community Survey 5-Year Estimates.

“The steep housing prices and cost of living in California represent major reasons,” for the movement, says Prof. Rogelio Saenz, department of demography, at the University of Texas at San Antonio. “One way to assess the difficulties in purchasing a home in California or Texas is to compute the ratio of the median household income to the median home value in each state.”

According to the 2021 American Community 1-Year Estimates, the value of homes was $7.63 for every $1 of household income in California in 2021 compared to $3.55 per $1 in Texas. The median value of a home in California was 2.7 times higher than in Texas in 2021.

The continual soaring housing prices and cost of living in California and much greater affordability in Texas is likely to sustain the significant flows of Californians toward Texas in the coming decades, he says.

Lower housing costs, affordability in Texas

Other than lower housing costs, the factors that make Texas attractive to Californians are the no-income tax policy, the lower cost of living and employment opportunities bolstered by the tech and energy sectors. Utilities are generally lower-priced in Texas as well, roughly 20% less than in California.

On the business front, Texas has actively pursued an economic strategy that includes creating a business-friendly environment that helped not only to retain businesses but also attract new ones. Over 100 companies moved their headquarters to Texas since 2020, with 40% of them coming from California.


Who’s moving to Texas? Millennials.
Most people moving from California to Texas are millennials, making up 46% of those decamping to Texas.

Millennials who moved to Texas had an average household income of $114,000 per year, 21% more than what millennials bring home overall at a national level ($94,000 per year).

The million-dollar difference

Homes cost, on average, about $282,000 less in Texas compared to California, amounting to a 70% price-tag difference.

In particular, two moving routes can result in savings of over $1 million. Buying a home in the Dallas area as opposed to one in San Jose can result in savings of over $1 million on average, as the home price difference between Santa Clara and Dallas counties is a whopping 258%.

The second biggest difference in listing prices is between San Mateo and Travis counties, at 243%, giving homebuyers a chance of nearly $1.3 million on average in savings.

Most Californians can save over $1,000 in rent when moving to Texas

In 18 of the moving routes, renters can save over $1,000 a month in Texas as compared to in their Californian county of origin. Not only that, but they can also make hefty savings if they switch renting from one state to the other. Except for the Los Angeles County to Collin County route, renters pay over 50% more in California versus their Texas destinations.

For instance, a move from Los Angeles to El Paso can save renters $1, 578 per month.

The second-best savings go to those moving from the San Diego area to San Antonio, with a 110% difference in rental rates, a saving of roughly $1,470 on rent per month.

Is everything big in Texas?

On average, homeowners get to enjoy 17% bigger homes in Texas versus California whereas apartments are about 6% larger.

For those prioritizing living space at home, a move from Los Angeles County to Collin County would be the most rewarding. This route brings the most space gains for both homebuyers (1,055 sq. ft.) and apartment dwellers (124 sq. ft.).

Besides the Los Angeles County to Collin County moving route, Californians get to enjoy an additional 1,000 square feet of living space when they buy a home after traveling on two other moving routes to Collin County: From Santa Clara County to Collin (1,002+ sq. ft.) and from Orange to Collin (1,000+ sq. ft.). In both cases, Californians get a home that’s on average 57% larger than the ones in their state of origin. Switching Los Angeles County for Denton County will also bring newcomers from the Golden State an additional 930+ square feet of living space at home.

@Olga Daisel  If you can hold onto the property I would as next year around April I think we will see a big jump in prices as that is when I see the interest rates coming back down plus demand is low in winter months.  Once August rolls around here in 2 months we won't see increases in price till March.  For me, the time to buy in Austin are these next few months where prices are much lower simply because of interest rates.  Many people are on the sidelines just waiting.  So best to jump on the low price and refinance to a better interest rate after a year.  

Hi Evan,

Lots of opportunities in Austin for flips.  Trick is to move quickly, both with being able to jump on a good deal and to rehab quickly to limit holding costs at high interest rates.  DM me at your convenience as I am happy to share my experience as I have done a number of house rehabs with my crew on call. 

@Bryan Zavala $30K down when you are using one side as a primary is totally doable. Plenty of duplexes where you can have your PITI (Principal, Interest, Taxes, and Insurance) around $2000/mo after subtracting the other side's rent from your it. If you are using the property solely for investment, then yes, $30K would not be enough but if you plan to live in one side then you can drive that down payment way down. PM me if you want me to walk you through the numbers.

@Vicki X.  Only if it is your primary residence, then it is limited to a maximum of 10% increase of the prior years tax amount.  If it is not a primary residence, they don't look at the following year's assessed value and redo the value each year.  

Property taxes bills are about to hit the mail and I thought I would help those in the Austin and Central Texas area know how to protest them.  In my opinion, you should protest your taxes every year as it can only save you considerable money and can take as little as 5 minutes.

How to file a protest in your county

Your home value starts Jan. 1

Your home’s appraised value for the year is based on its condition – and what the appraisal district estimates the sale price for your property could be – on Jan.1. Any damage or improvements after this date – say, a tree that falls on your roof in March, or the new bathroom you added in May – won’t affect the taxable value of your home this year.

Appraisals mailed out

In early April, the appraisal district mails a notice to all property owners, telling you the estimated market value and assessed value of your home. The assessed value is the number used for tax purposes. Look over the numbers carefully. If your property is not described correctly or if the value seems incorrect, you can protest it.

Filing a protest

In Travis, Williamson and Hays counties, around May 15 is the deadline for most property owners to file a notice of protest of your appraised value.

What’s the best way to file? You have a couple of options. You can use the form on the back of the “Notice of Appraised Value” that you received from the appraisal district, since it already has your account information printed on it. Or you can file your protest online.

In Travis County, go to www.traviscad.org/efile. Williamson County residents can go to www.wcad.org/online-protest-filing, while Hays County residents can do the same at www.hayscad.com/protest-info. The benefit of online protesting is that appraisal district staffers can review your information and decide whether to offer you a settlement, potentially without you having to attend a hearing at all.

As you’re filling out the form, pay particular attention to the step in which you check off the box or boxes stating the reason for your protest. Your choices here will affect what kind of evidence you can present later on. If the district listed the wrong square footage for your home, for instance, be sure to check “property description is incorrect.” If you think your value is out of step with similar homes, make sure to mark “Value is unequal compared with other properties.”

For typical homeowners challenging their appraisal, the Texas Comptroller’s office suggests checking “Value is over market value” and “Value is unequal compared with other properties.” That will “allow you to present the widest types of evidence and preserve your full appeal rights,” the agency says in its handout on “Property Taxpayer Remedies.”

Meet with the appraiser

If you do not online protest and once you’ve filed your “Notice of Protest,” the Travis Central Appraisal District will send you a letter with two dates: an informal meeting with an appraisal staffer and your formal hearing date with the appraisal review board, a group of independent residents appointed to hear these challenges. During the informal meeting, the staffer will review the numbers with you. Bring all of your documentation: Information on comparable homes (records are available on the appraisal district’s website), perhaps an independent appraisal if you recently refinanced your house, or photos, repair estimates and other records showing damage that may devalue your home. Once you and a staffer have hashed it out, the district may offer to reduce your value by a certain amount. If you’re satisfied, you can accept it.

THERE IS NO DOWNSIDE TO ONLINE AND INFORMAL PROTESTS. YOUR APPRAISED AMOUNT CAN ONLY GO DOWN.

However, if you still don’t agree with the appraised value, you can keep your date with the appraisal review board, or technically, with a three-member panel of appraisal review board members. Before that hearing, you have a right to see all of the information the district appraisers plan to present, so be sure to contact the appraisal district to request those documents. I would be wary of going to the formal review as the board can decide to RAISE your appraised value causing you to pay more, whether you agree with them or not.

Helpful hints

Here are some suggestions from experts on how to conduct yourself during the protest and appeal process, and how to give yourself the best chance at success:

DON’T: Complain about how you can’t afford your taxes. The appraisal district doesn’t set the tax rate; they only decide what your home is worth for tax purposes.

DO: Come armed with a specific value you believe your home is worth, and the documentation to support that figure. Also, if this is a primary home, double check it has the homestead exemption.

DON’T: Give a long, rambling presentation filled with generalizations.

DO: Request in advance the documentation the appraisal district compiled to calculate its appraisal of your property. Examine the comparable homes used to determine your property’s value. See whether differences in property size, home upgrades or proximity to a busy road, for instance, might make those properties a poor comparison for your home.

Finally, if all this sounds too much, even the 5 minute online protest, there are a number of companies who will fight on your behalf and you pay 40-50% of what they save you for that service. Some are now charging a flat upfront fee but there are some still offering 0 cost if they don’t save you money.

Don’t hesitate to contact me for all your real estate questions, in Texas and nationwide.

Dan Burstain

INVESTMENT REALTOR®

Cell: 512.588.3260