All Forum Posts by: Linda Osborn

@Caleb HeimsothI don't disagree. But it all depends on the numbers and total picture....not just the price of the property. And if you are just starting out, funding this would be a lot more difficult than, say, a property for $40K or $60K. Just make sure that price isn't the only qualification. If I buy a property for $40k, but no one will rent it, that doesn't do me much good, either!

@Zach Talke, @Caleb Heimsoth Just a point of clarification....yes homes are much more expensive in Austin than they used to be. And the prices are still rising due to demand. Austin's jobless rate is one of the lowest in the country and many more people are moving here everyday. That said, according the the Austin Board of Realtors and the Texas A&M Real Estate Center, the median price of a home as of July 2018 is $405K in Austin proper, with surrounding cities (suburbs) at: Round Rock $278K, Pflugerville $265K, Manor $205K, Leander $261K, Kyle $215K, Hutto, $226K, Georgetown $287K, Cedar Park $325K, Buda $266K....so there are plenty of homes within close proximity to Austin that are more affordable. And those are "medians"....so, by definition, half of the homes are lower than this price! Don't get me wrong, finding a "deal" is still a challenge, especially since rent rate increases tend to rise more slowly than do home prices.... but deals can still be found with work and time. Just something to think about!

@Brian Washburn If the carpets are gross like you say, spend the money now to either replace or put in other flooring. Bad carpet will (1) affect your ability to get it rented, (2) affect your ability to get market rent even if you do get it rented, and (3) depending on how bad it is, may affect the smell of the unit and/or sensitivity to allergies of your tenant(s). If you can afford it. Replace with hard flooring (tile, wood laminate, etc.) which is more expensive, but will last longer. My only caution with laminate is that moisture/water will damage it...so keep away from wet areas. If you do replace with new carpet, make sure there is a clause in your lease requiring the tenants to have the home professionally cleaned when they leave....or there is a charge to do it for them. Hope this helps! Regards, -Linda

Welcome to BP, @Rich Kleinhans! Feel free to reach out if I can be of any assistance!

Looking for help from the BP Technical Staff and couldn't figure out another way to enter it. Feel free to let me know if there is a better venue for this inquiry.

I was trying to enter an investment into my BP Profile, but ran into several issues....(1) sometimes I couldn't get to the [Save] button (it was below my screen and the scroll bar would not let me scroll down that far, (2) when I finally figured a way to see the [Save] button, it wouldn't Save. I'd hit [Save] and nothing would happen. 

And, as an additional item, it would be great to post videos here as well as pictures. Doesn't look like that is an option now, but should be considered. 

Please let me know when these items are corrected.

Thanks!

@Zach Talke, 

@Jordan Moorhead is correct. Without a steady W2 income, purchasing property for buy & hold will be difficult. It is better to get a steady income first! Then later you can explore other possibilities. 

For someone young and starting out, I always recommend buying your first homestead, then turning it into a rental after 2-4 years. The reasons for this are as follows: (1) You have to have a place to live anyway....why pay rent and a mortgage right away? (2) You can get much better loans terms (interest rate, downpayment) as a potential owner-occupier, (3) the loan is a tax deduction....take advantage of it!, and (4) if you are handy with repairs and maintenance (and assuming the property is still very livable), you can add some sweat equity while you are living in it. re there opportunities where if you are able to find good deals, to find a partner where they provide the money down (with the idea being you'll pay them back for "your half" of the money down they are paying for up front through the investment's performance over time) and you use their credit and your role is to take care of all the property management? Or is this rare, if even a thing?

With regard to your question "Are there opportunities where if you are able to find good deals, to find a partner where they provide the money down (with the idea being you'll pay them back for "your half" of the money down they are paying for up front through the investment's performance over time) and you use their credit and your role is to take care of all the property management? Or is this rare, if even a thing?" In my experience, this would be very difficult. Most investors with money have someplace to put it and would consider this type of investment risky since you have no "skin in the game."  

@Account Closed is essentially recommending the same thing, and I agree with him. 

In the meantime, happy learning!

Welcome to BP,

@Au Jia!  

Welcome to BP @Vivek V.! Lots of information here! 

First thing you should do is spend some time on BP and with other investors and get educated. Although I agree great cash flow is great, having someone else pay off your investment (thus "buying" you equity), and having depreciation to counter your income (conditions apply, so do your homework!) are excellent reasons as well. Appreciation is a fantastic bonus, but it is risky to count on, even in our dynamic Austin market. 

Depending on where you are in life and your current lifestyle, my recommendations would be different. Feel free to reach out to discuss further.

Some comments on the discussion with @Ryan Blake above:

- Property taxes. Property taxes are capped IF the home is purchased as a homestead. Investment property taxes are NOT capped, and, as you can imagine, have been a big topic in the past 2-3 years as property values in this area continue to climb. So, you are correct, property taxes need to be considered. 

- Ryan captured the costs pretty well. Additional ones to look out for are HOA dues/fees. These can vary significantly across the Austin area depending on subdivision/amenities.

Good luck with your investments and please feel free to let me know if I can help in any way!

@Hira Man Shrestha, Did you get your questions answered? Feel free to reach out if you have specific questions you want to explore further with regard to investing (or not) in the Austin area. 

@Sue Swami, Did you find what (who ;-) ) you were looking for?