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.

New Listing - 3 weeks online
$175,000
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
810
SQFT
6904 Cherry Meadow Dr
Austin, TX 78745
Cherry Meadows Subdivision
New Listing - 2 weeks online
$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 - 3 days 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 - 3 days online
$215,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,326
SQFT
3403 Clarksburg Dr
Austin, TX 78745
Southampton Sec 01 Subdivision
New Listing - 2 weeks online
$219,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,174
SQFT
8503 Romney Rd
Austin, TX 78748
Buckingham Estates Ph III Sec Subdivision
$238,500
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,710
SQFT
10627 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
$238,700
Condo For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,922
SQFT
11417 Lost Maples Trl
Austin, TX 78748
Ravenscroft Twnhms Amd 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 - 4 weeks 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
$245,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,167
SQFT
11507 Dub Dr
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 3 weeks online
$248,500
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,366
SQFT
1631 Cattle Trl
Austin, TX 78748
Texas Oaks 02 Subdivision
$249,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1515 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$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
4
BED
2
TOTAL BATHS
1,527
SQFT
1110 Dunstan Dr
Austin, TX 78745
Southwest Park 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
$259,900
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,922
SQFT
1300 Catalan Rd #1001 #1001
Austin, TX 78748
Smithfield Condos Subdivision
New Listing - 2 days online
$259,900
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,214
SQFT
2821 Wilcrest Dr
Austin, TX 78748
Pheasant Run Sec 01 Subdivision
New Listing - 2 weeks online
$259,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1503 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$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
New Listing - yesterday
$263,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11802 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
Price Change - a week ago
$263,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1416 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
Price Change - a week ago
$263,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1403 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
Price Change - a week ago
$263,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1410 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 4 weeks online
$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
New Listing - yesterday
$265,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,322
SQFT
7902 Woodcroft Dr
Austin, TX 78749
Woodstone Village Sec 01 Subdivision
New Listing - a week online
$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
New Listing - a week online
$268,000
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 - 4 weeks online
$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 - 3 weeks online
$269,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,355
SQFT
11405 Eddie Egan Ln
Austin, TX 78748
Olympic Heights Sec 01 Subdivision
New Listing - 2 weeks online
$269,000
Condo For Sale
Active
3
BED
2
TOTAL BATHS
1,209
SQFT
5807 West Gate Blvd #B #B
Austin, TX 78745
Westgate Crossing Condo Subdivision
New Listing - 4 weeks online
$269,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,743
SQFT
11221 Pardoners Tale Ln
Austin, TX 78748
Canterbury Trails Sec 04 Subdivision
$269,958
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11803 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$270,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,590
SQFT
11244 Pardoners Tale Ln
Austin, TX 78748
Canterbury Trails Sec 04 Subdivision
Price Change - 2 days ago
$270,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,521
SQFT
1324 St Stanislaws Dr
Austin, TX 78748
Morningside Subdivision
Open House 11/16 at 10AM
$274,327
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11804 Frenchie Ln
Austin, TX 78748
Smithfield Subdivision
$274,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1505 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,713
SQFT
1133 Brecon Ln
Austin, TX 78748
Parkwood Sec 03 Subdivision
New Listing - 3 weeks online
$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
Price Change - 3 weeks ago
$279,875
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,684
SQFT
9912 Willers Way
Austin, TX 78748
Tanglewood Forest Sec 02 Ph A Subdivision
New Listing - 4 weeks online
$279,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,422
SQFT
9308 Beechnut Dr #35 #35
Austin, TX 78748
Sage Meadow Condo Amd Subdivision
Price Change - 3 weeks ago
$279,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11801 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$280,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,991
SQFT
1607 Strickland Dr
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 6 days 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
New Listing - 5 days online
$280,000
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
1,019
SQFT
3400 Plantation Rd
Austin, TX 78745
Oak Plantations Subdivision
Open House 11/17 at 1PM
$280,000
Single Family Home For Sale
Active
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
$282,500
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
910
SQFT
401 Tilbury Ln
Austin, TX 78745
Greenwood Hills Sec 04 Subdivision
Price Change - 3 weeks ago
$282,860
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,245
SQFT
9715 Holly Springs Dr
Austin, TX 78748
Tanglewood Forest Sec 02 Ph D Subdivision
$283,301
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,559
SQFT
8900 Parker Ranch Cir #A #A
Austin, TX 78748
Parker Ranch Subdivision
New Listing - 2 weeks online
$284,260
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1511 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
Price Change - 3 weeks ago
$285,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,375
SQFT
8129 Tockington Way
Austin, TX 78748
Parkwood Sec 04 Subdivision
$285,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,735
SQFT
11700 Paul E Anderson Dr
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - a week 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 - 3 weeks online
$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 - 3 weeks online
$285,000
Single Family Home For Sale
Active
4
BED
2
TOTAL BATHS
1,642
SQFT
1206 Dunstan Dr
Austin, TX 78745
Southwest Park Subdivision
New Listing - 2 weeks online
$285,900
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
11904 Dispatch Way
Austin, TX 78748
Summerrow Subdivision
$286,321
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1414 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
$288,002
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11800 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$288,150
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1405 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision