All Forum Posts by: Robert Eyers

Hey Matt, I manage properties in Austin, but one of my investors recently picked up a property in Killeen and I agreed to manage it for him. My experience has been... Eye opening. The property is negative right now because we had to fix it up, but the tenants moved in recently and it should be cash flowing very nicely in a moment.

However, as someone who WAS also looking at buying cheap with quick cash flow in Killeen... I'm seriously reconsidering.

I recommend you stick to Austin. If you want to set up a call and walk through the case study I just mentioned, let me know.

When I moved here from Sonoma (5 years ago) I was making to a penny the exact amount I made in CA. We were renting in CA, and both my wife and I were working 50-60 hour weeks. We were able to buy a home, have a child, and allow her to semi-retire while building her own business. Most people would tell me at the time how expensive Austin is, but I had to laugh a bit.

Investors: Look to Hornsby Bend, still affordable enough to cash flow TODAY and practically across the street from this. Call me if you need boots on the ground.

Hi there Meghanath,

I still highly believe in the Austin market. We were named one of the top ten recession resistant cities for 2020, and in the last month Amazon signed a new lease here and Tesla is in the process of negotiating a deal for a factory. Job growth continues to be strong, and appreciation will follow.

I'm a property manager here and am happy to look into any specific deals if you like, but the short answer in my mind is budget specific. SFR's do very well in North Austin and luxury properties in West Austin (Bee cave, Steiner) are great investments right now. Personally, I'm trying to make the numbers work on 2-4's in South austin (78745) because we are seeing the rent outpace prices there right now and I suspect the value will catch up in the next 18 months.

Cash flow in year 1 is hard in Austin unless you have significant equity on day 1. Unless you buy low or put a significant deposit down there is a risk of cash flow being flat or negative. Still, the appreciation game is strong and the rent increases notably each year while the mortgage stays the same (if you are smart with your tax protests).

Let me know if I can ever assist!

Excellent read, thanks for sending it.

Everyone I've spoken to has expressed fear of selling in this market. I've actually had a couple new clients from people trying to put tenants in place for a couple years instead of putting their home on the MLS. Works well for me, but these stats show the buyers are still out there.

My thoughts: if you want to sell right now, I wouldn't hold back. Buyers are rebounding faster than sellers and I suspect we'll have a low supply/high demand for a few months. Yes, in the long run this crisis will hit people's wallets and we may see more inventory from people who are downsizing, but I don't think that will happen until stimulus checks and unemployment run out. 

Of course, that's for the flippers and individuals of the world. For investors I still say Buy and Hold is the best way to make money in Austin.

@Neil Narayan, thanks for the shoutout!

@Ian Lenny, I'll send you a note.

I don't, but I do have an outstanding mortgage broker I could refer you to if you like. 

@Devin Dang, congrats on taking the first steps! You're already miles ahead of many people. 

One piece of advice when you are analyzing deals, don't try to force profit. I used to find myself playing little games like "well, if I can lower the interest rate by 0.5%, this property would be in the black monthly". I'm not saying you are getting stuck there, but keep it in the back of your mind. Especially for this project, it doesn't really matter if its cash flowing positive or negative $100. The point is you are just about breaking even on your primary residence, which would normally cost you up to $2k monthly. And if you lose $100 a month? The appreciation will catch you up.

My obstacles you need to think about are:

1) You can't find a 4/3 in Austin at that price point, as others have said. I'm in South Austin, so I think of Kyle when I look at your numbers. Bastrop and the area's Beau pointed out are also good to look into.

2) Not all 4/3's are the same. 4 adults living in 1800 sq feet might make sense financially, but it could get old in practice.

Finally, in your case I don't think you're looking for a property manager since you'll be on site, but feel free to reach out to me if I can offer any advice on leasing, advertising, etc. I'm always happy to help!

Sorry, I should have been clearer. I'm talking about just measuring debt against rent. $200 cash flow prior to  accounting for maintenance and vacancy. 

I'm on the MLS, but I try to look elsewhere as well. I'm a REIA member, but those meetings have been less than fantastic since COVID19. I'm constantly watching the facebook wholesalers groups, and things like foreclosures and auction.com. I have a network of investors that I work for (property management) that sometimes comes up with something. Anywhere else you think I should be looking? My mailers and active marketing is more focused on my business than acquisitions, and I'm not really trying to change that.

Thanks @Matthew Irish-Jones, but I was looking a little closer to home, more of the Austin TX Suburbs. Winters in NY aren't my style... and I've known too many Bills fans (Kidding, they are great people)

@Stephen Stokes - I want that to be true, but the properties I'm seeing would require a significant down payment or rehab. Every time I crunch the numbers I end up tying up 40K in a 3/2 that is cash flowing $200 per month at best. What's your strategy for "buying right" at the moment? I'd love to hear your experience.