All Forum Posts by: Sue Swami

Hello, I recently moved to the SF bay area, the home prices here are legendary and I don't have to explain why I am looking to invest long distance. 

I am interested in rental SFRs in Austin - because of it's foundation in tech as is mine, because I'm interested in appreciation more than cash flow (still positive cash flow is a must of course). I want to be in a long term hold pattern and I prefer stronger urban areas with lots of jobs to hedge against a correction. We might eventually move there, and that has influenced me to a small extent to look at Austin. 

I am interested in buying two properties - on a scale of A-C, one in a class A neighborhood, and while I don't think the math would be quite there at the higher end, I'm open as far as budget, and another in a class B neighborhood that's shaping up well. I am not looking for a mind blowing deal - I know they are not easy to get and I don't want to bide my time waiting for one to magically appear especially as someone not in any secret society. However I need a strong agent who can propose fundamentally sound investment SFRs with solid math based on our cash position and risk appetite. 

I've already spoken to a couple of agents, but I'm not completely sure I vibe with them 100%. If anyone here has used an agent they would recommend, I'd love to talk to them. (ETA: preferably someone who has a real estate history longer than the recent bull market and known what it is to invest during the down cycle as well).  If anyone has specific neighborhoods that they'd recommend based on my preamble above, I'd love to hear those. I have a couple of acquaintances in the Round Rock/Cedar Park area, and I am familiar with the school districts from having talked to my close friend who lived there (she doesn't anymore) but am otherwise not in the know, so please throw some names and numbers at me to help me out. 

I'm glad to find someone else with a similar mindset. Even with what is considered good cash flow, my stocks are performing just as well if not better (at least for now) so it's not worth the headache to have multiple properties for me. I use real estate for diversification, and don't mind slightly lower returns. 

From researching, I am beginning to see the light in what you did. I think might be better off with a bigger property in class B than a small one in A based on the cash flow and just the vacancy period and how long it is on market. 

But I'm still hoping someone will respond with some insight on the rebuilding in Arcadia that's happening. I'm fascinated. 

On a separate note, would you PM your realtor contact if you had a good experience with them? 

I have three rentals in the Gilbert/Queen Creek area. I am considering selling them all when their leases expire (within a few months of each other) and 1031 exchanging into a single bigger property in a more upscale area (as best as I can get timing right). I understand it's going to be less cash flow but it would save the headache of maintenance on three properties for me. Also, I think we're peaking prices in that area (a guess, who knows?)

I have been tempted by the tear down and rebuild wave that's happening there. I would be looking at a combination of proceeds from the sale and a new mortgage to pay for it. I'd be primarily looking for an older home under $1M that I could rent for a few years before rebuilding. The other possibility is to buy a lot and build custom and then sell it, but I don't believe I could get financing for $1.5M+, not to mention no income for about two years. Would be too ambitious I think but I just don't know any figures. 

What should I consider with such a project and with this area? It's newer to me, and I'd be diversifying away from the HOA/cookie cutter style rentals that we currently deal in.

1) In a quick survey of the two areas they seemed FILLED with for sale properties so is it right now a buyer's market there? Is it always the case that there is that much turnover? 

2) What kind of investments are best suited for that area? Flip? Buy & hold rental? How is the area as a rental anyway? 

3) Are there pockets within PV and arcadia that are better? I've driven around a bit, but I don't live there and could use some insight. All the realtors I spoke to are upbeat about everything (predictably). 

4) Are there other nice areas that anyone can suggest to consolidate at the $750k price range away from Chandler/Gilbert/Queen Creek? 

Thanks for any and all insight and avice.