@Account Closed, the real estate agent you contacted quoted you this? "I spoke with a real estate on the phone about all of this, she told me, with $300k, she can make it work that I will be cash flowing between $300 and $800 a month. Now, she didn't give me details about location, type of home etc. etc. but she was aware of all my numbers. Is this unrealistic, just to get me on board with her?" Also, "so I need to come up with a revised approach if $300,000 with 10% down (I have been pre approved) is not going to work in Austin with the above numbers.".
Ok, I think there is either some miscommunication going on or your getting bad advice.
1. If you are investing in Investment Real Estate (meaning you are not owner occupied) you will be required to put down a minimum of 20% and a lot of lenders are requiring 25%. If you are buying a home that you will live in then yes there are loans that you can get that only require 3-10% down, If you had military service and qualify for a VA loan you can get 0% down. BUT ONLY IF YOU ARE OWNER OCCUPANT.
2. If you have an agent that can get you 300-800 positive cash flow on a 300k property with 20% down in Austin, then ask her to show you a real live example and to show you the numbers. It is not that hard to either prove her right or wrong. I would be very skeptical that she could produce those numbers but I don't want to call her a liar. So just say to her to show you a property on the market today in Austin that could work. Now I do think you can find something similar just not in the Austin area.
My brother just closed a duplex in Elgin, TX, about 30-40 mins to Austin. He bought it for 174k and it brings in 1850 in rents and I believe those rents could be renewed to about 2000 next year. He does his own property management and he is clearing $400 positive each month now. However, if you're not experienced, not from the local area, and not ready to pounce then to close a deal like this is going to be hard.
Again, I don't know much about your experience but if you are serious about moving to Austin and you don't have any kids over the age of 5, this is my recommendation: Save your money until you move out here. Look for a duplex, buy it, move in one side, rent the other side. If you're single and really motivated, rent out one of your rooms on your side and now you're cooking with fire. Do it for two years, if you like the setup, go find another duplex and move into it and repeat. If you need your privacy, buy another duplex and don't rent out your extra room. If after two years, you want a small SFH to live in, then move out of your duplex, hopefully rents continue up and now you are breaking even or making a little positive when you move into your next property. But don't sell the duplex!
Properties in and around Austin, have gotten so expensive that most people are going to have to find ways to cut expenses. I tell all who I mentor, to plan on being your own landlord. That will save you money and give you a lot of experience. Once you begin to acquire more properties, more experience and more confidence, then you're ready to decide if a property manager makes sense or not.
Lastly, when you are told stuff be it from a real estate agent, a friend, mortgage lender, or anyone, if it doesn't sound right ask more questions and have it explained to you so that you can understand. 2008 changed the way investment properties are bought. Before then, you could buy property with 5-10% down, not anymore, unless you are owner occupant. Good luck.
