All Forum Posts by: Pat Brown

@Pat Brown Yes, if you are just buying a rent ready home off the MLS in Round Rock, it may be a bit difficult to find a good deal that cash flows really well. That goes for both single family and multi-family in that area. You are going to need to find one that is distressed and that maybe not many other people would buy. That way you purchase at a discount, fix it up and then rent it out.

I think I'm looking hardest at the strategy you describe here. Good advice. Thanks

1 Vote

Originally posted by @Sal Zafar:

Round rock is getting out of hand. Properties which never been sold because of it's condition are selling it with full or may be higher than asking price. Outside investors are killing it here. What they are not understanding that rents are not really matching with the sale price. Even whole sellers are putting artificial inflated numbers incorrect COMPS from next two streets increasing the value of the property-- I personally notice that, since i have MLS access. Sad thing is, outside investor are not understanding all that. They see under $200k sell price and just jumped on it.

I have to agree with you Sal. It's insane. I do have a patient agent who feeds us lots of good leads but I'm beginning to think I need to sit for a while. Thanks for the reply

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Originally posted by @Russell Spillers:

Pat,

You've gotten a great response from some really knowledgeable folks. I am a full time real estate investor in Central Texas. I am mainly engaged in flips and acquiring properties for my own buy and hold portfolio, but the level of marketing I am doing enables me to also wholesale deals that I am unable to take down immediately.

If your interested in a conversation plesas give me a call.

Thanks Russell at this point not heading that direction but could be in the near future. Thanks for the post.

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Originally posted by @Lars S.:

Originally posted by @Pat Brown:

Should I jump in a possibly have a negative cash flow?

Round Rock and Austin seem extremely competitive which is why I have been trying to learn about other cities. Have you taken a look at other cities like Kileen or Katy? Those two cities seem to be discussed more and more here on the forums and I would be interested to see what you think of those areas. Perhaps those areas might provide better opportunities than Round Rock.

So I have checked into Kileen which is a military town so heavy transition. Pretty close to Round Rock but I want a little closer to home. Katy is outside of Houston so even further out, so maybe down the road. Thanks for the reply

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Put a bid on a house just east of 35 good location. House was almost 1400 sq ft and priced at 164,900. Put a bid at 170k and had the high bid but a cash buyer came in and they took that offer.
It could come Back On Market BOM. Which brings a question. If you see a BOM and a Price Drop obviously or maybe not so obviously someone did an inspection and bailed and just lost the Option Money. So would you jump on one of those, hoping like the foundation is not cracked?
A question for those bidding what is the standard rule of Option Money? Is there a formula like (Age of House, Shape of House, Price of House)? Last question what about items that need repair in the house, in a hot market like Round Rock should you just leave those out and lower your price or put them in on say a full price offer or maybe a full price or a little over. I'm asking several questions here so any advice would be helpful.

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Thanks for the reply. Frustrating process here in Round Rock Tx. Houses have all jumped about 15% last year. I don't see it stopping but then with those prices rents have not jumped accordingly.
There in lies the problem.

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Houses here are going in 2 to 3 days so I have to make a decision fast
Looking at a 207k house that would only yield a $150 a month positive cash
flow. But houses are appreciating fast here at a rate of 10 or more a year.
Should I jump in a possibly have a negative cash flow?

2 Votes

All Forum Posts by: Pat Brown

Pat Brown has started 4 posts and replied 17 times.

Post: First Time Buyer in Austin/Round Rock

Post: First Time Buyer in Austin/Round Rock

Post: First Time Buyer in Austin/Round Rock

Post: First Time Buyer in Austin/Round Rock

Post: Just got out bid again...well sort of in Round Rock Tx

Post: First Time Buyer in Austin/Round Rock

Post: First Time Buyer in Austin/Round Rock