Investing in Austin Texas Real Estate

Austin, TX Economy Growth

REAL ESTATE INVESTING IN AUSTIN TX – FAQ

Q: What does Crossland Real Estate do as agents for investor buyers?
A: We help financially qualified individuals identify and acquire residential homes.

Q: What does Crossland Real Estate NOT do?
A: We do not help buyers find flips, fixers, foreclosures or creative financing opportunities. We do not sell duplexes, 4-plexes or apartments, just good quality “rent ready” single family homes in good areas.

Q: Do you focus on and recommend certain areas in and around Austin?
A: Yes. We generally help buyers find homes in South, SW, & NW Austin as well as Cedar Park, Leander and West Round Rock. We don’t sell in newer, unestablished outskirts.

Q: Why those particular areas?
A: Homes in these areas, in our opinion, offer the best combination of location, affordability, appreciation potential, schools and the median value housing stock that attracts quality renters.

Q: What price ranges to you recommend Austin real estate investors stay within?
A: $225K to $375K, in general. Or, roughly, 25% above and below the median Austin home value of $300K.

Q: Do you recommend a certain size and age of home?
A: Yes. We recommend homes that are 3 to 4 bedroom, 2 to 3 bath, 2-garage minimum, between 1,400-2,200 square feet in size, built 1980s and newer.

Q: Do you have other criteria investors should observe?
A: Yes. When possible, it’s best to have a 1-story home that has an additional flex room, such as a 2nd living area, formal dining, 4th bedroom or office. If it is a 2 story home, it’s best to have the master bedroom downstairs. Also, we help you avoid homes with “misfit attributes” or functional obsolescence.

Q: Is real estate investing risky?
A: Yes. Real Estate investing is extremely risky. You might lose money. You should only invest in real estate with extra, left over money that you’re willing to put at risk. This means you should already be maxed out with any employer matched 401Ks, have no debt attached to depreciating assets (such as cars, furniture, credit card debt, etc), and have no outstanding balances on credit cards.

In other words, your financial house should be in order with all other investment, retirement and debt categories in your life. If you have credit card debt, car payments and haven’t started saving for retirement, you should discuss that with your financial advisor or accountant before looking for investment property to purchase.

Q: How much cash on hand should I have before investing.
A: About $75,000 to $125,000 USD. This will provide funds for a 25% down payment and remaining reserves equal to 6 months rent. If you don’t have that amount of available funds for down payment and operating reserves, you should reconsider investing in Austin real estate.

Q: What are some basic financial assumptions about investing in Austin real estate
A: It will generally take 3.5 to 5 month’s rent to cover annual property taxes and insurance for the typical rental home.
Property taxes average 2.2% to almost 3% of assessed market value, depending on the location in the Austin metro area.
Assume 10% of gross annual rent toward repairs and maintenance
Assume 10% of gross annual rent toward vacancy/leasing, and
Assume 10% of gross annual rent toward management fees if you will be using a property manager.

The historic average appreciation rate in Texas is 4.5% over time, so that’s the rate we assume over a decade or more, even if the market at time of purchase is “hot” or “flat”.

Homes in Austin generally lease for somewhere between 0.5% to 0.7% of the market sales price per month. So, for example, a median value $300,000 home at 0.6% of market value would have a monthly lease value of $1,800/mo. More expensive homes have lower ratios. Cheaper homes have higher ratios, but they are cheaper for a reason. Be careful. You want to be able to attract quality tenants.

Of course all of these numbers are averages and guesses. Two identical homes in the same neighborhood will perform differently over a 10 year period. Cash flow, or monthly “break even” cash flow amount will depend on how much down payment you invest.

You also have to factor in tax advantages, depending on your income level and tax bracket, equity pay down over time, and depreciation write off over time. A “negative cash flow” property may be positive once everything is factored in. You and your accountant should assess how real estate investing will fit into your personal financial picture, and how it compares to alternatives such as the stock market.

Q: Can you help me decide if investing is a good idea for me?
A: No. Thats’ not what we do, other than to say we think it’s a good idea for many, but not for most. We help financially qualified individuals identify and acquire residential homes, but we are not financial advisors or accountants. The above should get you started on considering the basic parameters we think a prudent investor should consider. We’re here to help once you’ve determined that investing is a good idea for you and your financial goals.

Are you Ready to Get Started Click Here or call 512-327-3900

Q: Can you give examples of listings you think make good candidate properties for investment?
A: Sure. The list of properties below is an example of homes available in SW Austin. You can modify the search and change the criteria if you wish.

Price Change - 2 days ago
$181,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,240
SQFT
Address Withheld
Austin, TX 78745
Cherry Meadows Subdivision
$185,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
960
SQFT
11510 Easy St
Austin, TX 78748
Mooreland Add Subdivision
New Listing - 4 weeks online
$210,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,084
SQFT
11512 Easy St
Austin, TX 78748
Mooreland Add Subdivision
New Listing - 2 weeks online
$215,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,331
SQFT
3318 Dalton St
Austin, TX 78745
Kincheon Sec 01 Subdivision
New Listing - 23 hours online
$215,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,374
SQFT
6102 Idlewood Cv
Austin, TX 78745
Flournoys Sweetbriar Subdivision
New Listing - 3 days online
$225,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,290
SQFT
10601 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
New Listing - 3 weeks online
$229,900
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,236
SQFT
10517 Garbacz Dr
Austin, TX 78748
Saddlewood Estates Sec 03 Subdivision
New Listing - a week online
$238,500
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,710
SQFT
10627 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
$239,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,572
SQFT
10655 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
New Listing - 2 days online
$240,000
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,922
SQFT
11409 Lost Maples Trl
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
New Listing - 4 days online
$240,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,299
SQFT
9309 Linkmeadow Dr
Austin, TX 78748
Cherry Creek Sec 16 Subdivision
New Listing - 4 days online
$249,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,276
SQFT
300 Natali St
Austin, TX 78748
Park Ridge Subdivision
$249,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1515 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
$249,999
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11703 Akita Path
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$250,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
982
SQFT
7204 Shadywood Dr
Austin, TX 78745
Meadow Creek Sec 01 Subdivision
New Listing - a week online
$250,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,650
SQFT
8500 Devine Ln
Austin, TX 78748
Parkwood Sec 02 Subdivision
$255,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,136
SQFT
6100 Boxcar Run
Austin, TX 78745
Southwest Park Sec 02 Amd Subdivision
Price Change - 2 weeks ago
$255,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,922
SQFT
1300 Catalan Rd #1001 #1001
Austin, TX 78748
Smithfield Condos Subdivision
Price Change - yesterday
$259,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,521
SQFT
1324 St Stanislaws Dr
Austin, TX 78748
Morningside Subdivision
$260,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,083
SQFT
8310 Beaver Brook Ln
Austin, TX 78748
Beaconridge Subdivision
Price Change - yesterday
$262,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,571
SQFT
10612 Marias River Dr
Austin, TX 78748
Texas Oaks Sec 08-A Subdivision
New Listing - 3 weeks online
$263,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11802 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
Price Change - 4 weeks ago
$263,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1403 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$263,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1410 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$264,000
Condo For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,209
SQFT
5807 West Gate Blvd #B #B
Austin, TX 78745
Westgate Crossing Condo Subdivision
$265,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,462
SQFT
10305 Laredo Dr #143 #143
Austin, TX 78748
Sweetwater Glen Condo Amd Subdivision
$265,000
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,439
SQFT
2404 Jesse Owens Dr
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
$266,486
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1504 Airedale
Austin, TX 78748
Smithfield Subdivision
$269,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,036
SQFT
8702 Dittmar Oaks Dr
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - a week online
$269,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,102
SQFT
10726 N Platt River Dr
Austin, TX 78748
Texas Oaks 09 Subdivision
New Listing - 3 weeks online
$269,958
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11803 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
Price Change - 3 weeks ago
$270,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,991
SQFT
1607 Strickland Dr
Austin, TX 78748
Dittmar Crossing Subdivision
Price Change - yesterday
$274,018
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1416 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
Open House 12/07 at 10AM
$274,327
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11804 Frenchie Ln
Austin, TX 78748
Smithfield Subdivision
Open House 12/08 at 1PM
$274,900
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
962
SQFT
9200 United Kingdom Dr
Austin, TX 78748
Buckingham Estates Ph 04 Sec A Subdivision
New Listing - 2 weeks online
$277,777
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
888
SQFT
401 Flournoy Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 05 Subdivision
Price Change - yesterday
$278,502
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,559
SQFT
8900 Parker Ranch Cir #A #A
Austin, TX 78748
Parker Ranch Subdivision
Open House 12/08 at 1PM
$279,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,214
SQFT
2652 Piping Rock Trl
Austin, TX 78748
Tanglewood Forest Sec 02 Ph C Subdivision
$279,800
Single Family Home For Sale
Pending
4
BED
2
TOTAL BATHS
1,499
SQFT
602 Mulberry Dr
Austin, TX 78745
Beaconridge 04-A Subdivision
New Listing - 2 weeks online
$279,875
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,684
SQFT
9912 Willers Way
Austin, TX 78748
Tanglewood Forest Sec 02 Ph A Subdivision
New Listing - 2 weeks online
$279,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11801 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
Price Change - yesterday
$279,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1511 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 16 hours online
$280,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,366
SQFT
2416 Christoff Loop
Austin, TX 78748
Rancho Alto Ph 03 Subdivision
New Listing - 3 days online
$280,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,477
SQFT
11609 Bruce Jenner Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 4 weeks online
$280,000
Single Family Home For Sale
Pending Taking Backups
4
BED
2
TOTAL BATHS
1,630
SQFT
1005 Speer Ln
Austin, TX 78745
Austin Highlands Sec 03 Subdivision
Price Change - 3 days ago
$280,000
Condo For Sale
Active
3
BED
2
TOTAL BATHS
1,196
SQFT
4410 Jester Dr #A #A
Austin, TX 78745
Ford Place 02 Subdivision
New Listing - a week online
$280,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,048
SQFT
7717 Elderberry
Austin, TX 78745
Beaconridge Subdivision
$282,262
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11705 Akita Path
Austin, TX 78748
Smithfield Subdivision
Price Change - 2 weeks ago
$284,900
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,176
SQFT
903 St Elmo Cir
Austin, TX 78745
Hilltop Add Subdivision
New Listing - a week online
$285,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,930
SQFT
2208 Boyds Way
Austin, TX 78748
Reserve At Slaughter Creek Subdivision
New Listing - 2 weeks online
$285,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,752
SQFT
10409 Wylie Dr #262 #262
Austin, TX 78748
Sweetwater Glen Subdivision
New Listing - 4 weeks online
$285,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
961
SQFT
707 Prince Arn Dr
Austin, TX 78745
Buckingham Estates Ph 2 Sec 2 Subdivision
New Listing - 2 weeks online
$285,000
Condo For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,752
SQFT
10204 Maydelle Dr
Austin, TX 78748
SWEETWATER GLEN Subdivision
$285,000
Single Family Home For Sale
Pending
3
BED
1
TOTAL BATHS
1,014
SQFT
5704 Garden Oaks Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 05 Subdivision
New Listing - 2 weeks online
$285,000
Single Family Home For Sale
Pending Taking Backups
4
BED
2
TOTAL BATHS
1,642
SQFT
1206 Dunstan Dr
Austin, TX 78745
Southwest Park Subdivision
New Listing - 3 weeks online
$288,002
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11800 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 days online
$288,400
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
1400 Jenkins Bnd
Austin, TX 78748
Summerrow Subdivision
Price Change - 2 weeks ago
$289,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,168
SQFT
6101 Waycross Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 08 Subdivision
Price Change - yesterday
$289,321
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1414 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
$289,444
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,707
SQFT
1517 Huckleberry Ln #51 #51
Austin, TX 78748
SAGE MEADOW Subdivision