Real estate in TX (Austin, Pasadena: sale, real estate market, foreclosures)

[TOMY]

Hi There,
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I'm looking to inveast in the real estate market in TX. My invesment will be in a range price of 100$ K to 150$K.

Is the market in TX is a good investment for the future? what i can receive if renting the place on a house in a range of 100 to 150?

What is the best place to look for in TX?

Im not from the US, Im just looking to invest.

I will appreciate any opinion and any thing that can help.

Thanks,

[Rocktexas]

Very difficult to answer your question to the point.
Basically you can have a good deal in any place in TX as opposed to CA, FL or AZ in terms of general market situations.
But it really depends on what you are trying to accomplish. You have to decide what your goal is first. We can't just talk a topic on a very broad context with fruitful results.
There are at least 4 ways to make money out of a real estate: income (in most of deals, creating a positive cashflow is very easy by putting all cash, but you can still be a loser if we take other factors such as "inflation" into our consideration), tax benefit, equity building (inflation) and appreciation.
Also, there are basically two ways to investing in real estate: Hardware or Software. By "hardware", I mean you "own" the morter and bricks with legal ownership and liabilities. With "software," I mean you don't own any physical stuff of a property, but you can "control" it without most of the risks an owner has. Some deals fall in between. Just like computer industry, a hardware sector may go downturn while sofeware are hot.
So, what you have in your mind? Just say: "I want make money is not enough, please at least tell us what kind return you want so that people can tell you if it is good or "bad."
BTW, good or bad are simply subjective terms. To you, it may be a good apple, but can be a bad one to others. Starting from 2005, I switch my target market from California to Central texas (the Hill counties) and bought several properties. Out of my last sale of my real estate investment in TX, I made at least 300 percent of return in a year (in fact, I turn my seed capital five times in 6 months, I have the escrow record to show you if you don't believe it).
Is it good or bad environment in TX real estate? You are the judge.

p.s. I got more than cash reward if you know Texans are more friendly than the place I used to live.

[Tejano]

[SIZE=3]I have never lost money in a real-estate transaction in my area of Victoria Texas for the past 15-18 yrs. I have bought houses to rent and also to flip (remodel to resell). I have done owner-financing deals also. I have invested in raw acreage as well. In my area there are real-estate companies that specialize in rental properties as far as managing it for you. I have always done it myself. I have always been fascinated with real-estate and how easy it is to make money. In my area if I purchased a house for ~100K I could expect to get 800-1000/mo. I have included a MLS link from my area. It will help you get an idea of the houses that are available in this area. Wish you luck! [/SIZE]
[SIZE=3][/SIZE]
[SIZE=3]Victoria Board of REALTORS[/SIZE]

[tstone]

You have to play this game very wisely in most of Texas if you want to actually make money when all is said and done. I personally wouldn't do it... and if I ever changed my mind about it I'd only do it without borrowing. Interest aside, the cost of insurance and property taxes can eat you up. Combine that with contractor expenses, income/capital gains taxes and markets that appreciate between slightly negative and slightly more than inflation (per year)... that certainly can wash away profits and it plagues a lot of the state. You really need to know your location location location to succeed. Many people I know who said they "made money" simply shifted their debt and didn't profit at all.

However Texas is a great place to buy a big house on a decent lot and live very comfortably for a long time.

[Rocktexas]

Sounds like "It takes money to make money"?
So the RE game is just for those riches to play?

I just got back from county property tax sale. The game rule is totally different from California. Great game here if you have patience.

At least there are a lot of properties up on auction blocks with value and potentials. Not like California where all tax sale pprty are just "JUNKS" with no chance for a bidder to gain anything recently. A piece of "land-locked" small lot, about 4,000 sqft, was auctioned for $110,000 in South Pasadena in 2003. It is purely a time wasted with few demand to "re-sell" for a profit (yes, you may talk to the adjourning land owner into buying it, I wish you good luck).

For example, a piece of decent city lot in a $200K +/- housing neighborhood was sold for $2400 this morning. Annual tax is $96. In that community, almost every single vacant lot with half the size as the one auctioned is asking $30,000 at least in NAR's MLS. What a bidder can lose by putting that amount of money and get 25% interest? It is better than current CD rate which will earn you 4-5% (and how much is the coming inflation rate and tax on interest?

Doing investing in RE, Yes, you do need some cash (I called it "seed money"). In Texas, it is very small amount as opposed to what you need and risks involved in Cali.

Dig out more info before you said "Very wisely." If you know how to do it, you wouldn't say that needs a lot of "special technique or knowledge" or "wisdom." It is basically very easy and safe with common sense without getting hurt.

Well, 80% people are normal and think normally. They can believe whatever they want and do whatever a normal person does to get normal return. That's normal in every stage of generations (Every generation has its "myth", it was a belief that stainless machine could poison the land when John Deer invented his machine and tried to market them.)

Let others do so-called "normal buy, hold and sell" in their way of thinking. I always do "abnormal" RE transactions ONLY and specialized it in "distressed RE market" in the past 10 years. It is my "normal" and creative way to make money in RE. I really don't follow the normality of the general public and don't listen to others. With very hign standard of morality of my own, doing things differently is my principle, not just for money involved. I am free like a bird in my life style. There is no "person" I have to listen to, except two: Uncle Sam (he governs us as a casio dealer who sets our economic game rule) and Goldie (that is my toy poddle. I have no choice when he wants to go out doing his business or needs water)

Okay, "abnormal" is too strong. Let's borrow a term from stock market and say it is a "contrarian" style of RE investing. The last thing I want is inviting bankers involved in my doing. At least at some point of time, I AVOID them and love "Seller Financing" so much.

Sorry, I am talking too much as a senior's tongue wags often as a dog's tail. I have to go back to talk to a listing agent and make an offer in buying a REO property right across the street of a tax sale property which was withdrawn this morning. That's a good buy if I can get my price (Remember, it is my criteria to buy at a steep discount of 50 percent at least).

[mtalatala]

It depends on your investment objectives. If it is appreciation, homes in Texas does not appreciate as much. If it is cash-flow, you'll have to consider your exit strategy. When are you going to sell the house? 5 years? 10 years? How fast can you sell the house? Will you be stuck with the house amid fierce competion from foreclosures and builders?

One thing that your might consider is looking for a distressed multi-unit aparment building. Distressed maybe because of low-occupance rate due to mismanagement...not necessarily because of maintenance issues. A simple way to say it is to raise the occupancy and sell for a profit.

Easier said than done. I would suggest before diving into real estate investing, know the area, inspect the property yourself, arm yourself with a good accountant, lawyer and a realtor.

[ozonehole]

At the moment, the real estate market is tanking all over the USA. Seems like about the worst time to start speculating. I'd wait until the market hits bottom (not sure just when that will be).

[NOTAM]

i was just watching CNN Headline News. they Central Texas, specifically Austin and Round Rock as very good investments on foreclosure properties...

[texdav]

Being foreign and not in the area or country it might not be that good an investment. You probaly could do better in the markets with alot less risk and management cost.I mean buying ;then renting and keeping up with a rent property from a foreign country can be risky especailly when your talking about one 150,000 home.