Investing in real estate in Austin

[hound 109]

Originally Posted by HEKTO

I agree. What are the good/best school districts in Austin area? My understanding that Cedar Park and Round Rock are among those. Am I right?

yep... the Cedar Park ISD is darn good. You can look it up..... CPISD.


Seriously Hekto. Do some research prior to asking questions (here) about "investment" property.

Here's a freebie. On virtually all 160-200K home you might be interested in, factor in 2.5-2.8% (per year) in property taxes & another $600-$1000 for insurance. (& no homestead exception)

[atxcio]

Originally Posted by Paula Kothmann

Thanks, Atxio. Do you have tips for finding a tenant this time of year?

Honestly in the past several years I've had to do almost nothing. I put an ad on craigslist, or a sign on the property, and the inquiries start coming in quickly. I screen tenants myself, but if you aren't comfortable doing it (or don't have all the forms/screening tools) then it's worth paying a property manager to do the whole thing. They can do your listing/advertising as well.

[Spacepup]

Originally Posted by centralaustinite

It is happening in all kinds of neighborhoods!! A house on my street sold about 6 months ago. It was well priced, and sold quickly. Sounds good. Only the new owners live out of state and *might* move to Austin someday. They bought it as a "investment" but are newbies and quickly proved to be in over their heads without a well-thought out plan. They have done some minor work on the house and keep the lawn up but haven't moved in and haven't rented it out. So a young married couple decided somehow that buying property in Austin was a "can't lose" proposition . . . yet they must be losing money on it every month (just wait until they see the property tax bill) and a house stands empty diminishing our neighborhood.

Yep Yep. Absentee landlords are just about the worst thing that can happen to a neighborhood. We may as well be (and perhaps are) in the same neighborhood.

I have noticed a proliferation of new get rich quick type financial independence "programs" that hype up owning rental houses as the sure-fire route to effort-free income - just sit back and collect checks! Warren Buffet says he wants to invest in SFH rentals, and surely he can't be wrong, RIGHT?! Some acquaintances have even gone to one or two then asked me or my family for tips because they know my parents have property they rent, and after we fill them in on what is actually involved in renting a place they never go back.

[HEKTO]

Originally Posted by centralaustinite

It is happening in all kinds of neighborhoods!! A house on my street sold about 6 months ago. It was well priced, and sold quickly. Sounds good. Only the new owners live out of state and *might* move to Austin someday. They bought it as a "investment" but are newbies and quickly proved to be in over their heads without a well-thought out plan. They have done some minor work on the house and keep the lawn up but haven't moved in and haven't rented it out. So a young married couple decided somehow that buying property in Austin was a "can't lose" proposition . . . yet they must be losing money on it every month (just wait until they see the property tax bill) and a house stands empty diminishing our neighborhood.

I don't understand - they can't find tenants?

[hound 109]

Originally Posted by HEKTO

I don't understand - they can't find tenants?

One can always find a tenant. If the price is right.

[centralaustinite]

Originally Posted by HEKTO

I don't understand - they can't find tenants?

No! They could easily rent out the house. They are just too clueless and too mixed in what exactly their purpose is in owning the home. They live out of state but think that they might move to Austin someday and live in the house. But now the move isn't happening as quick as they thought. And being a first-time landlord from out of state is apparently beyond their skill set. And they don't have the wits/extra funds to bring in a management service. They define clueless.

I think that they bought the house in cash! As an *investment* but now they have locked that cash up and seem frozen.

Sometimes access to money seems to make people dumber, this certainly seems to be the case. Maybe they are trust fund babies? I've had a few as neighbors . . . tremendous lack of life skills.