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 - a week online
$199,000
Single Family Home For Sale
Pending
4
BED
2
TOTAL BATHS
1,318
SQFT
6510 King George Dr
Austin, TX 78745
BUCKINGHAM PLACE SEC 4 Subdivision
Price Change - 4 days ago
$215,900
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
$237,900
Condo For Sale
Pending
3
BED
2
TOTAL BATHS
1,506
SQFT
11128 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
New Listing - 7 days online
$244,900
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
2,127
SQFT
1809 Veneer Dr
Austin, TX 78748
Laurelwood Estates Subdivision
New Listing - 4 days online
$246,000
Townhouse For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,821
SQFT
11124 Lost Maples Trl
Austin, TX 78748
Ravenscroft Townhomes Subdivision
New Listing - 7 days 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
$249,900
Condo For Sale
Pending
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
New Listing - 2 weeks online
$260,000
Single Family Home For Sale
Pending
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
$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 - 20 hours online
$265,000
Single Family Home For Sale
Pending
6
BED
3
TOTAL BATHS
2,629
SQFT
10310 Gail Rd
Austin, TX 78748
Ford Oaks Annex Resub Subdivision
$265,000
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,922
SQFT
1306 Catalan Rd #901 #901
Austin, TX 78748
Smithfield Condos Subdivision
New Listing - 4 weeks online
$265,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,084
SQFT
7202 Sir Gawain Dr
Austin, TX 78745
Buckingham Estates Ph 2 Sec 1 Subdivision
New Listing - 3 weeks online
$265,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,231
SQFT
9622 Holly Springs Dr
Austin, TX 78748
Tanglewood Forest Sec 02 Ph D Subdivision
New Listing - 3 weeks online
$265,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1416 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
$266,486
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
1504 Airedale
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$270,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,454
SQFT
11021 Franklins Tale Loop
Austin, TX 78748
Canterbury Trails Sec 02 Subdivision
New Listing - 4 weeks online
$270,000
Single Family Home For Sale
Pending Taking Backups
4
BED
3
TOTAL BATHS
1,991
SQFT
1607 Strickland Dr
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 3 weeks online
$270,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,263
SQFT
9038 Vigen Cir
Austin, TX 78748
Park Ridge Subdivision
New Listing - 3 weeks online
$274,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,099
SQFT
Address Withheld
Austin, TX 78748
Texas Oaks 09 Subdivision
New Listing - 7 days online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,237
SQFT
5902 Burnhill Dr
Austin, TX 78745
Cherry Creek Ph 02 Sec 02 Subdivision
New Listing - a week online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,699
SQFT
8511 Davis Oaks Trl
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 3 weeks online
$275,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,346
SQFT
2304 Wilma Rudolph Rd
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 4 weeks online
$277,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11705 Akita Path
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$278,500
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,299
SQFT
8921 Swanson Ln
Austin, TX 78748
Park Ridge Subdivision
$278,502
Condo For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,559
SQFT
8900 Parker Ranch Cir #A #A
Austin, TX 78748
Parker Ranch Subdivision
$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
New Listing - 16 hours online
$279,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,564
SQFT
7912 Keneshaw Dr
Austin, TX 78745
Southwest Oaks Sec 01 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
New Listing - 4 days online
$280,000
Condo For Sale
Active
3
BED
2
TOTAL BATHS
1,485
SQFT
712 Padron Ln #67 #67
Austin, TX 78748
Milestone Southpark Condominiu Subdivision
New Listing - 4 weeks online
$283,000
Single Family Home For Sale
Pending
4
BED
2
TOTAL BATHS
1,522
SQFT
11801 Buzz Schneider Ln
Austin, TX 78748
Rancho Alto Ph 01 Subdivision
Price Change - 6 days ago
$283,823
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1414 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$284,900
Condo For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,346
SQFT
1605 Bluewood Ln #119 #119
Austin, TX 78748
Sage Meadow Condo Amd Subdivision
New Listing - 4 days online
$285,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,480
SQFT
7616 Islander Dr
Austin, TX 78749
Maple Run Sec 01 Subdivision
New Listing - 4 weeks online
$287,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,867
SQFT
11820 Easy St
Austin, TX 78748
Morningside Subdivision
New Listing - 2 weeks online
$289,213
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11811 Malamute Rd
Austin, TX 78748
Smithfield Subdivision
New Listing - yesterday
$289,446
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11907 Malamute Rd
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 days online
$289,900
Single Family Home For Sale
Pending Taking Backups
4
BED
3
TOTAL BATHS
2,138
SQFT
11737 Easy St
Austin, TX 78748
Morningside Subdivision
New Listing - 2 weeks online
$290,000
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,655
SQFT
2200 Coats Cir
Austin, TX 78748
Great Oaks At Slaughter Creekp Subdivision
New Listing - 2 weeks online
$290,570
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1405 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
$291,201
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1411 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$291,996
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11800 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$293,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,355
SQFT
11702 Jim Thorpe Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 20 hours online
$293,009
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,918
SQFT
1408 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$295,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,860
SQFT
11200 Canterbury Tales Ln
Austin, TX 78748
Canterbury Trails Sec 02 Subdivision
New Listing - 3 days online
$297,500
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,346
SQFT
2205 Billy Mills Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - a week online
$298,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,251
SQFT
8105 Tockington Way
Austin, TX 78748
Parkwood Sec 04 Subdivision
New Listing - 3 weeks online
$298,645
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,792
SQFT
10717 Portico Ln
Austin, TX 78748
Lynnbrook Village Condo Subdivision
New Listing - 4 weeks online
$299,000
Single Family Home For Sale
Pending
4
BED
2
TOTAL BATHS
1,764
SQFT
2918 Dillion Hill Dr
Austin, TX 78745
Cherry Creek Ph 06 Sec 01 Subdivision
New Listing - 2 days online
$299,000
Condo For Sale
Active
3
BED
1
TOTAL BATHS
1,308
SQFT
2401 Claret Cv #111 #111
Austin, TX 78748
Gabardine Condo Subdivision
New Listing - 3 days online
$299,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,178
SQFT
1606 Chippeway Ln
Austin, TX 78745
Cooper Oaks Sec 01 Subdivision
$299,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,911
SQFT
8404 Chick Pea Ln
Austin, TX 78748
Parkridge Gardens Subdivision
New Listing - 4 weeks online
$299,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,494
SQFT
3015 Foxton Cv
Austin, TX 78748
Tanglewood Forest Sec 04 Ph F Subdivision
$299,642
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
1301 Tenon Cv
Austin, TX 78748
Summerrow Subdivision
New Listing - a week online
$299,900
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,291
SQFT
1200 Spearson Ln
Austin, TX 78745
Cooper Oaks Sec 02 Subdivision
$299,990
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
1307 Tenon Cv
Austin, TX 78748
Summerrow Subdivision
New Listing - a week online
$299,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1502 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision