Austin Investment Case Study

I recently worked with a client from Los Angeles who was looking for an investment property that provided positive cash flow. He wasn’t familiar with the Austin area, but he quickly found there are better real estate investment opportunities in central Texas when compared to California.

The main reason is that the rental income in the Los Angeles area doesn’t provide an attractive return on  investment when the sales price is so high. Many properties are priced well over $1 million, so your rent would have be close to $10,000 per month for it to be lucrative — and in California those properties are very  hard to find.

This property is a great example of where the numbers can work in your favor here in Austin.

This duplex was purchased for $370K. The rental rates are $1600 for each unit (2) providing just under  10% positive cash flow.  It’s located just two miles from the new Dell Medical School (under construction) and only three miles from downtown and the University of Texas.  These are all features which will boost equity through appreciating home values and rents should also increase – making this a very attractive investment.

I always help my clients research areas where rents are forecasted to increase.  In this case we selected a location which is completely being transformed and where home values have started to rise while still being affordable.

Another benefit I provide is property management. This duplex is now a turn-key investment since I manage it and with my resources and contractors, my client doesn’t spend time worrying about rents or repairs. In just a couple weeks we completely updated the property with new paint, AC, new fixtures and other repairs without disrupting the tenants.

There are many properties in Austin where you can get a 10% annual ROI and I would love to help you find it.  Moreover I will always try to find the best location for appreciation and rising rents.

Call me today if you are looking for investment properties and have questions.