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.

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.

$285,000
Single Family Home For Sale
Pending
3
BEDS
1
TOTAL BATH
936
SQFT
705 Mankato Drive
Austin, TX 78748
Texas Oaks Sec 08-A Subdivision
New Listing - 4 weeks online
$321,000
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,213
SQFT
11309 James Haller Drive
Austin, TX 78748
Chappell Hill Subdivision
New Listing - 3 weeks online
$325,000
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
1,418
SQFT
8514 Dittmar Oaks Drive
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 3 weeks online
$335,000
Single Family Home For Sale
Active
4
BEDS
2
TOTAL BATHS
1,271
SQFT
607 Blueberry Hill
Austin, TX 78745
Flournoys Sweetbriar Sec 11 Subdivision
Price Change - 3 weeks ago
$339,000
Single Family Home For Sale
Active Under Contract
3
BEDS
1
TOTAL BATH
1,300
SQFT
3402 Plantation Road
Austin, TX 78745
Oak Plantations Subdivision
New Listing - 2 weeks online
$340,000
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,236
SQFT
11307 James Haller Drive
Austin, TX 78748
Chappell Hill Subdivision
$348,000
Single Family Home For Sale
Active Under Contract
4
BEDS
3
TOTAL BATHS
1,905
SQFT
505 Kingfisher Creek Drive
Austin, TX 78748
Texas Oaks 10 Subdivision
New Listing - 4 weeks online
$349,999
Single Family Home For Sale
Pending
3
BEDS
4
TOTAL BATHS
1,422
SQFT
2207 Wilma Rudolph Road
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
Price Change - 6 days ago
$350,000
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
962
SQFT
504 Treys Way
Austin, TX 78745
Flournoys Sweetbriar Sec 07 Subdivision
New Listing - 4 weeks online
$359,000
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,102
SQFT
10708 N Platt River Drive
Austin, TX 78748
Texas Oaks 09 Subdivision
New Listing - 4 weeks online
$359,000
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
854
SQFT
603 Treys Way
Austin, TX 78745
Flournoys Sweetbriar Sec 07 Subdivision
$365,000
Condo For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,024
SQFT
6713 West Gate Boulevard #A
Austin, TX 78745
6713 West Gate Boulevard Condo Subdivision
New Listing - 2 weeks online
$369,000
Single Family Home For Sale
Active Under Contract
5
BEDS
3
TOTAL BATHS
2,144
SQFT
358 Fm 1626
Austin, TX 78748
San Leanna Estates Subdivision
$370,000
Townhouse For Sale
Pending
3
BEDS
3
TOTAL BATHS
1,821
SQFT
11129 Lost Maples Trail
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
$374,900
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,247
SQFT
11720 Alexs Lane
Austin, TX 78748
Morningside Subdivision
Price Change - 4 weeks ago
$375,000
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,008
SQFT
7207 Lunar Drive
Austin, TX 78745
Meadow Creek Sec 01 Subdivision
New Listing - 3 weeks online
$375,000
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,176
SQFT
8515 Cornwall Drive
Austin, TX 78748
Buckingham Estates Ph Iii Sec Subdivision
Price Change - 2 weeks ago
$375,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
1,052
SQFT
8106 S 1st Street
Austin, TX 78748
Pool O H Sec 02 Subdivision
New Listing - 4 weeks online
$380,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
880
SQFT
1106 St Stanislaws Drive
Austin, TX 78748
Chappell Hill Subdivision
New Listing - 4 weeks online
$380,000
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,648
SQFT
3108 Linnet Drive
Austin, TX 78745
Cherry Creek Ph 08 Sec 06 Subdivision
$384,000
Townhouse For Sale
Pending
3
BEDS
3
TOTAL BATHS
1,821
SQFT
11136 Lost Maples Trail
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
New Listing - 4 weeks online
$385,000
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,299
SQFT
9212 Vigen Circle
Austin, TX 78748
Park Ridge Subd Subdivision
New Listing - 2 weeks online
$385,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
1,143
SQFT
8200 Belclaire Lane
Austin, TX 78748
Beaconridge I Subdivision
New Listing - a week online
$389,000
Single Family Home For Sale
Active
4
BEDS
2
TOTAL BATHS
1,324
SQFT
1312 Radam Circle
Austin, TX 78745
Salem Walk Sec 03 Subdivision
$390,000
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,658
SQFT
9924 Milla Circle #28
Austin, TX 78748
Milestone Southpark Condominiu Subdivision
New Listing - 3 weeks online
$390,000
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,501
SQFT
913 Sweetwater River Drive
Austin, TX 78748
Texas Oaks 05 Subdivision
New Listing - 3 weeks online
$390,000
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,352
SQFT
10622 Marias River Drive
Austin, TX 78748
Texas Oaks Sec 08-A Subdivision
Price Change - 3 weeks ago
$394,900
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,123
SQFT
605 Hyde Park Place
Austin, TX 78748
Buckingham Estates Ph Iii Sec Subdivision
$395,000
Condo For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,277
SQFT
6801 Beckett Road #131L
Austin, TX 78749
Cottage Court Condo Amd Subdivision
Price Change - yesterday
$395,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
988
SQFT
828 Sussex Drive
Austin, TX 78745
Colonial Park Amd Subdivision
New Listing - 4 days online
$395,900
Condo For Sale
Active
3
BEDS
4
TOTAL BATHS
1,396
SQFT
1701 Matthews Lane #A
Austin, TX 78745
Matthews Lane Condos Subdivision
$397,595
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,233
SQFT
10507 Bilbrook Place
Austin, TX 78748
Texas Oaks 05 Subdivision
New Listing - 4 weeks online
$399,000
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,590
SQFT
11608 Jim Thorpe Lane
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 2 weeks online
$399,500
Condo For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,695
SQFT
1510 Bedlington Lane #1501
Austin, TX 78748
Smithfield Subdivision
$399,900
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,363
SQFT
2005 Boyds Way
Austin, TX 78748
Reserve At Slaughter Creek Subdivision
New Listing - 2 weeks online
$399,900
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,590
SQFT
11406 James Haller Drive
Austin, TX 78748
Chappell Hill Subdivision
New Listing - 2 weeks online
$399,900
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,118
SQFT
7011 Mount Carrell Drive
Austin, TX 78745
Hillside Oaks Subdivision
$399,900
Single Family Home For Sale
Active Under Contract
3
BEDS
3
TOTAL BATHS
1,438
SQFT
1609 Redwater Drive #155
Austin, TX 78748
Sweetwater Glen Condo Amd Subdivision
$399,900
Single Family Home For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,230
SQFT
1605 Cattle Trail
Austin, TX 78748
Texas Oaks 02 Subdivision
$399,900
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,072
SQFT
813 Great Britain Boulevard
Austin, TX 78748
Buckingham Estates Ph 3 Sec 3 Subdivision
New Listing - 4 weeks online
$400,000
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
1,652
SQFT
7125 Wishing Well Drive
Austin, TX 78745
Sunridge South Subdivision
$400,000
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
1,434
SQFT
11347 Canterbury Tales Lane
Austin, TX 78748
Canterbury Trails Sec Ii Subdivision

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