All Forum Posts by: Navdeep Raj

1) If you own an investment property, with 1031 Exchange I can sell the investment property and buy a like-kind property and defer capital gain taxes. Correct?

2) If you own an investment property in Texas, and if anytime in the last 5yrs of the sale if that property you lived in the property, you don't pay any capital gain taxes. Correct?

1+2) If you own an investment property, with 1031 Exchange I sell that property, use that funds to invest in a like-kind property and at some point I live in that new property for 2 years and then sell that second property, will I pay capital gains taxes?

@Steve R. Good info. Agree that is also a good pocket. Wells Branch will be equidistant from Apple/Joyville, Domain & Parmer Center? Any specific insights/thoughts about Wells Branch?

I've been looking to invest in a SFR in the North-West Austin pocket. I've been working with local agents and now finally in contract (with option period) on a house in 78728, Wells Branch. It's a 4bed 2bath 1360sq property on a 4225sq lot, single car garage for 255k. I'm a remote investor with potential to move to Austin in 5ish years (I know of the negative cash flow and comfortable with it).

My original favorite pocket was Jollyville considering the new Apple campus but houses there are no more in my comfort zone. This pocket to me is as good cos its under 5mi to Old/New Apple, Oracle, 5mi to Domain, etc. Also this house is under a mile from the Howard station meaning access to Downtown should be good. 

Apart from my assumptions and homework, I'd like to hear from other local investors and agents in the area about pros and cons of this this property/zip-code. 

@Wayne Bolen In 5 yrs, I'd have put 30k out of my pocket to PITI

@Account Closed Yes, I'm working with a huge Redfin team of agents and reps with the buying process. Comps show this property is priced right for current market while there are also houses of same type/size selling for 30-60k over. To break it down, total expense is 2k (includes PITI, repairs, management fee, gardening, etc.) and income is ~$1500-$1600 income giving me ~$450 negative cash flow per month. I'm purely looking at this as a buy+hold investment given the potential appreciation its going to have in the next few years. This property is <1mi from the upcoming Apple campus.

Another old article feeding my speculation...

I'm in contract for a 3B-2B house in 78729. Its built 1985 with a converted garage to a large 2nd living area and is a corner lot. So far my research says Austin is not a good place for investment properties given the CAP rate is between 2-3% max (Am I wrong?)

I’m putting in 20% down on the 255k property, it might need 5-10k fixes and overall closing will be close to 60k with a 205k loan.

Monthly expenses will be ~$1k (repairs, management, vacancy, tax, insurance, etc.) and rent ~$1.5k putting me in a negative cashflow!! Yeah, I know its not a good investment property!! Right?

I’m betting on the speculation that in 5-8 years property values will have doubled. Why?

Community center with pool, tennis, etc - 1min walk

School district: 5-6-7

Driving distances:

Costco - 14min

Walmart - 10min

Lakeline shopping mall - 11min

And to the Tech side of things (big part of my speculation)

Apple/Oracle/Accenture/TriNet - 7min

Electronic Arts - 5min

Amazon - 12min

IBM - 12min

Dell - 14min

Visa - 7min

Flex - 6min

Cisco - 6min

Nvidia - 9min

National Instruments - 11min

Samsung - 20min (insanely huge factory)

Everyone above are huge huge employers with 100s-1000s of jobs and constantly hiring & expanding.

Amazon is expanding to 800 new employees in “The Domain” new offices by 2020.

Google expansion downtown Austin - 5000 new people, 800k sqft by 2022

And to the best one! Apple!! Their approved upcoming campus going to be complete by end of 2021 will employ 5000 employees and scales to 15000 people.

This is a 1 BILLION DOLLAR investment by Apple and is 0.9mi, 2min drive, 5min bike or 20min walk from this place.

I’m in contract and have 3 more days to back out. I’d love to hear for all you investors if this is a good move for the long term :)

I'm in contract for a 3B-2B house in 78729. Its built 1985, 1150sqft (1550sqft including a converted garage to a large 2nd living area) and is a corner lot. So far my research says Austin is not a good place for investment properties given the CAP rate is between 2-3% max (Am I wrong?)

I’m putting in 20% down on the 255k property, it might need 5-10k fixes and overall closing will be close to 60k with a 205k loan.

Monthly expenses will be ~$1k (repairs, management, vacancy, tax, insurance, etc.) and rent ~$1.5k putting me in a negative cashflow!! Yeah, I know its not a good investment property!! Right?

I’m betting on the speculation that in 5-8 years property values will have doubled. Why?

Community center with pool, tennis, etc - 1min walk

School district: 5-6-7

Driving distances:

Costco - 14min

Walmart - 10min

Lakeline shopping mall - 11min

And to the Tech side of things (big part of my speculation)

Apple/Oracle/Accenture/TriNet - 7min

Electronic Arts - 5min

Amazon - 12min

IBM - 12min

Dell - 14min

Visa - 7min

Flex - 6min

Cisco - 6min

Nvidia - 9min

National Instruments - 11min

Samsung - 20min (insanely huge factory)

Everyone above are huge huge employers with 100s-1000s of jobs and constantly hiring & expanding.

Amazon is expanding to 800 new employees in “The Domain” new offices by 2020.

Google expansion downtown Austin - 5000 new people, 800k sqft by 2022

And to the best one! Apple!! Their approved upcoming campus going to be complete by end of 2021 will employ 5000 employees and scales to 15000 people.

This is a 1 BILLION DOLLAR investment by Apple and is 0.9mi, 2min drive, 5min bike or 20min walk from this place.

I’m in contract and have 3 more days to back out. I’d love to hear for all you investors if this is a good move for the long term :)