All Forum Posts by: Vik J.

So, this conversation came up with my best mate yesterday evening and I thought I'd get some insights from the investor gurus here.

Given what's going on now (increasing prices and lower inventory), and given the growth of Austin - so many companies moving or expanding - do you foresee a scenario where it's either so expensive to buy a home closer to work place / school district, etc., or there's just not enough choice that people will be forced to (or want to) rent instead....which means rental prices also start to go up? 

How is the rental market in 2020 compared to previous years in terms of rent increase?

Good day Prash! First off, a hearty welcome to this forum! 

We are all facing the same challenges, even more so for blokes like me who are OOS investors. The most obvious advice would be "be patient, something will show up" but it is challenging all the same.

That said, it also goes back to what your criteria is (price point, neighbourhood, amount of time investment). Depending on that, you can still find properties. I've heard of folks buying BRRR properties, for example. Again, depends on how well you're connected and how much time you're willing to give, and something will work out. I am a remote OOS, I was lucky to buy a few years ago when it was this manic, but I have also been frustrated by what I'm seeing.

Of course, like my dear ol chum @Rohan D. points out, there are several experts on this thread that could offer additional advice.

Thanks @Vivana Alvarado!!

I can't speak for a condo, but generally 1 and 2 is tenant. You'll, of course have to ensure the pool, lawn, etc. are spiffy before your tenant moves in (but I guess that goes without saying). 

no3 is an interesting question - in terms of regular care, I don't believe there's anything I do or oversee, but if there are structural issues, or a problem (like wind blew down my fence, or water sprinkler broke - those are things that I'm responsible for). If they "break" something (like, say, clogged the waterpipes in the John), they're responsible. 

+1 to what everyone says. ~400 CF sounds amazing in this current Austin atmosphere.

Veni, in an ideal world, I'd love to buy a prop in CP or RR but today, it's just too expensive to a point where you won't see enough cash flow. Unless you get a great deal, or are willing to remodel it a lot. I like Leander, but again, it comes down to both appreciation and cash flow in each of these areas. 

+1

Hi Karin, I own rentals in Leander and they are appreciating well, and getting good cash flow too!

Andrew, mate - a big warm welcome to this forum and a merry Christmas to you! 

I presume you meant Leander. Liberty hill , etc. Any reason Why you would only prefer N Austin? Steve wang hits some good points. Cash flow neutral is also hard on new constructions... but, keep looking! It’s not impossible. Just don’t buy a home knowing fully well you’ll be CF negative.

Also consider expanding your search to other neighbourhoodS like hutto, etc. The South too - Kyle, Buda, etc. 

Other than the weather, Austin is all sorts or fabulous. I’m so happy the city is finally receiving nationwide recognition!!

I’m so happy for Austin! Such a fine city !