All Forum Posts by: Michael Watson

Hi all, 

Long post so please bear with me... I have two questions: (1) I live in South Austin and have been shaking the trees for about six months trying to find a deal to buy. I am interested in SF, duplex and up to 8-plex. I have been looking as far South as San Antonio and as far North as Waco and ~ 20 miles East and West of I-35, but nothing seems to be a reasonable investment at this time. Key factors being the average time on market (very limited), asking price, rents for my given search area, etc. I understand that the 1% rule doesn't apply in these markets as the rents have not caught up to home prices and I am fine using IRR. Is anyone finding deals within the past 6-months that are available? By available I mean do they make sense to purchase, rent, and receive a reasonable return without pinning hopes on the real estate market continuing to soar in Central Texas?

(2) Is anyone interested in potentially partnering on a JV to purchase some land within the year and build duplexes? I am specifically looking in the Buda area as there is a real shortage of homes there. I understand building costs are exorbitant at this time and I would be fine purchasing the land and holding it until some costs ease. Specifically lumber.

Thanks for reading and please let me know if you have any input or interest.

-Mike 
 

Do the soaring prices for single family homes in the metro Austin area (including surrounding areas like Buda, Kyle, etc.) make sense to any other potential investors when applying the 1% rule? I can't make deals work out on my desired ROI without making some real concessions. The single family home rents don't seem to have caught up to the rapid growth of home price.

Is there a new metric others are using that I should be aware of and should consider when reviewing deals?

Thanks.