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.

$181,000
Single Family Home For Sale
Pending
3
BED
1
TOTAL BATHS
1,240
SQFT
Address Withheld
Austin, TX 78745
Cherry Meadows Subdivision
Price Change - 2 days ago
$225,900
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 - 2 weeks online
$235,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,350
SQFT
1412 Geoffs Dr
Austin, TX 78748
Saddlewood Estates Sec 03 Subdivision
$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
New Listing - 3 weeks online
$239,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,572
SQFT
10655 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
New Listing - a week online
$239,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,167
SQFT
12004 Johnny Weismuller Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
$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
$240,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,299
SQFT
9309 Linkmeadow Dr
Austin, TX 78748
Cherry Creek Sec 16 Subdivision
$248,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,512
SQFT
11607 James B Connolly Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - a week online
$249,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,136
SQFT
6100 Boxcar Run
Austin, TX 78745
Southwest Park Sec 02 Amd Subdivision
New Listing - yesterday
$249,900
Condo For Sale
Active
3
BED
2
TOTAL BATHS
1,234
SQFT
5047 Fort Clark Dr
Austin, TX 78745
Park At Battle Bend Amd Subdivision
$249,999
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,036
SQFT
8702 Dittmar Oaks Dr
Austin, TX 78748
Dittmar Crossing Subdivision
Price Change - 3 days ago
$255,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
888
SQFT
401 Flournoy Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 05 Subdivision
New Listing - 3 weeks online
$255,000
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,922
SQFT
1300 Catalan Rd #1001 #1001
Austin, TX 78748
Smithfield Condos Subdivision
New Listing - a week online
$258,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,366
SQFT
2416 Christoff Loop
Austin, TX 78748
Rancho Alto Ph 03 Subdivision
$258,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,439
SQFT
11317 Canterbury Tales Ln
Austin, TX 78748
Canterbury Trails Sec 02 Subdivision
$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
$263,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1403 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$264,997
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,203
SQFT
10607 NORTH PLATT RIVER Dr
Austin, TX 78748
TEXAS OAKS 9 Subdivision
New Listing - 2 weeks online
$265,000
Single Family Home For Sale
Pending Taking Backups
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
1,086
SQFT
8400 Birmingham Dr
Austin, TX 78748
Buckingham Estates Ph 3 Sec 3 Subdivision
New Listing - 3 days online
$265,000
Condo For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,922
SQFT
1306 Catalan Rd #901 #901
Austin, TX 78748
Smithfield Condos Subdivision
New Listing - 3 weeks online
$266,486
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1504 Airedale
Austin, TX 78748
Smithfield Subdivision
New Listing - a week online
$270,000
Single Family Home For Sale
Active
5
BED
2
TOTAL BATHS
1,846
SQFT
8102 Beaconcrest Dr
Austin, TX 78748
Beaconridge 02 Amd Subdivision
$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
New Listing - yesterday
$274,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,099
SQFT
Address Withheld
Austin, TX 78748
Texas Oaks 09 Subdivision
$274,900
Single Family Home For Sale
Pending
3
BED
1
TOTAL BATHS
962
SQFT
9200 United Kingdom Dr
Austin, TX 78748
Buckingham Estates Ph 04 Sec A Subdivision
New Listing - 6 days online
$274,999
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
1,168
SQFT
6101 Waycross Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 08 Subdivision
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,268
SQFT
7402 Ceylon Ct
Austin, TX 78749
West Branch Subdivision
New Listing - 4 weeks online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,268
SQFT
1708 Strobel Ln
Austin, TX 78748
Rancho Alto Ph 02 Subdivision
New Listing - 2 weeks online
$275,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,299
SQFT
750 Patchway Ln
Austin, TX 78748
Parkwood Sec 05 Subdivision
New Listing - 3 weeks online
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,231
SQFT
9622 Holly Springs Dr
Austin, TX 78748
Tanglewood Forest Sec 02 Ph D Subdivision
New Listing - 2 weeks online
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,346
SQFT
2304 Wilma Rudolph Rd
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
Price Change - 2 weeks ago
$276,004
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1416 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
Price Change - 2 weeks ago
$277,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11705 Akita Path
Austin, TX 78748
Smithfield Subdivision
New Listing - 4 days online
$278,502
Condo For Sale
Active Contingent
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
$279,000
Single Family Home For Sale
Pending Taking Backups
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
$279,900
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
1,176
SQFT
903 St Elmo Cir
Austin, TX 78745
Hilltop Add Subdivision
$279,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11801 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$279,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1511 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
$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 - yesterday
$280,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,867
SQFT
11820 Easy St
Austin, TX 78748
Morningside Subdivision
$285,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
961
SQFT
707 Prince Arn Dr
Austin, TX 78745
Buckingham Estates Ph 2 Sec 2 Subdivision
$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
Open House 01/19 at 1PM
$288,000
Single Family Home For Sale
Active
4
BED
2
TOTAL BATHS
1,522
SQFT
11801 Buzz Schneider Ln
Austin, TX 78748
Rancho Alto Ph 01 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
Price Change - 2 weeks ago
$289,656
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1414 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 5 days online
$289,900
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,992
SQFT
8605 Davis Oaks Trl
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 3 days online
$289,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,566
SQFT
9005 Vigen Cir
Austin, TX 78748
Park Ridge Subdivision
$290,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
1314 Jenkins Bnd
Austin, TX 78748
Summerrow Subdivision
New Listing - 3 weeks online
$290,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,199
SQFT
1114 Echo Ln
Austin, TX 78745
Carrell Oaks Sec 2 Subdivision
$290,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,674
SQFT
718 Minturn Ln
Austin, TX 78748
Buckingham Estates Ph 04 Sec C Subdivision
Price Change - 2 weeks ago
$290,570
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1405 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 days online
$291,201
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1411 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
Open House 01/19 at 12PM
$291,996
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11800 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
Open House 01/19 at 1PM
$293,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,355
SQFT
11702 Jim Thorpe Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
Price Change - 4 weeks ago
$293,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,254
SQFT
6304 Libyan Dr
Austin, TX 78745
Southwest Park Subdivision
Price Change - 2 weeks ago
$293,009
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,918
SQFT
1408 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
$295,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,658
SQFT
Address Withheld #28
Austin, TX 78748
Milestone Southpark Condominiu Subdivision

THERE IS MUCH MORE TO CONSIDER! THIS IS A BRIEF OVERVIEW TO GET YOU STARTED

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