All Forum Posts by: Dan Burstain

Out of state investing, in my opinion, requires, first, one to have at least one person on the ground there that knows their stuff.  They don't have to be a PM or Realtor but it helps.  A good handyman can do the trick as well.  But you need at least one of those to have a good chance of success.  The second thing I look for is stability.  If it is the state capital or has a huge university, that helps in down times to keep things stable.  Then third, I look for job growth.  Are companies moving there, is it pro business, etc.  This is basically why I left California 14 years ago and moved to Austin and bought 6 places here.  It has one of the largest state capitals, a huge university, and tons of job growth in a pro-business, vibrant city with no income tax.  

@Schadrac Mertis  Jarrell is a growing community about 30 minutes from high tech corridor (Apple campus, HomeAway, InDeed, etc) and about 45 minutes from downtown Austin.  Right now, new build prices there are hard to beat.  Rents are nice as well with new builds renting around $2000+ per month.  You can grab an 1850sqft 4 bedroom new build there for under $300K.  Lots of incentives too (no closing costs, appliance package, etc).

Depends, what are your goals? I am an Investment Realtor here in the Austin area and have clients doing all types of stuff. If you want immediate cash flow, you need to look into STR, or monthly rentals, or rent by room. I have investors buying new builds as they just became available to investors again. I have investors doing scrape and builds which are riskier but potentially provide huge returns (turning $400K into $1M+ in 18 months). So it depends on what your comfort level is and what your goals are both short and long term. Happy to discuss in more detail if you like.

It has been about a year since new builds were available to purchase for investors in most of the Austin area.  Now those restrictions have opened back up.  You can grab a new build in the Austin and surrounding area starting in the low $300's.  Don't like the interest rates, many builders are offering heavily discounted interest rates with their lenders.  Unsure about the market's direction, buy a new build that has not been started yet and your small deposit will cover a year and a half of speculation.  That really is the Warren Buffet way as people get scared and pull their money out, that is when he puts his money in to take advantage of those deals being offered now.  Austin is still bringing in 140 people a day along with huge companies like Micron looking to drop $80 billion on a plant just 30-40 minutes southeast of downtown Austin.  

Just sent you a DM.   You will love Austin.  

Christinia,

I see it went pending...was that you? Be wary of the abnormally large rental price for the B side. That is what makes it look more attractive. Maybe if this was a month to month renter or some STR with owner living in other side it makes sense but you can see there is a $400 discrepancy between the units and even if the garage was converted to another room it would not add that much rent to one side in my opinion.

I just PM'd you.  Not every lender does this and they can vary on requirements, down payments, and especially when it comes to reserves.  There are some great opportunities though in building homes on infill lots or even scrape and builds.  

Plenty of new builds available to investors in San Antonio, New Braunfels, Seguin, and other cities here in Central Texas.  If you want in the actual city of Austin we would need to do a land purchase and then set you up with a custom builder at like $250/sqft.

Yes.  It is hard to find these days but there are new construction opportunities for investors.  I can get you some new builds under $400K in New Braunfels, about 45 minutes from downtown Austin and 35 min to downtown San Antonio.  There are also empty lots you can buy closer into Austin for like $100K but build costs might make that total creep over $500K depending on the size of the home.

I have clients looking to buy and scrape properties and build new.  Anybody got recommendations for

lenders who could handle both the purchase and construction loan for pure investment?  Wanted to

see if there were options besides 20% down on both loans.