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 - yesterday
$199,999
Single Family Home For Sale
Pending Taking Backups
4
BED
2
TOTAL BATHS
1,183
SQFT
11312 James Haller Dr
Austin, TX 78748
Chappell Hill Subdivision
New Listing - 2 weeks online
$229,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,293
SQFT
10705 Carovilli Dr
Austin, TX 78748
Texas Oaks 09 Subdivision
New Listing - 4 weeks online
$229,999
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,222
SQFT
10602 N Platt River Dr
Austin, TX 78748
Texas Oaks Sec 09 Subdivision
New Listing - 5 days online
$230,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,350
SQFT
10612 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
New Listing - 4 weeks online
$230,000
Single Family Home For Sale
Pending Taking Backups
4
BED
3
TOTAL BATHS
2,144
SQFT
1510 Damon Rd
Austin, TX 78745
T C W Add Subdivision
New Listing - 5 days online
$235,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
904
SQFT
5801 Glenhollow Path
Austin, TX 78745
Flournoys Sweetbriar Sec 03 Subdivision
$238,500
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,474
SQFT
10504 Wylie Dr #277 #277
Austin, TX 78748
Sweetwater Glen Condo Amd Subdivision
New Listing - 2 weeks online
$239,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,294
SQFT
10639 Carovilli Dr
Austin, TX 78748
Texas Oaks 09 Subdivision
$245,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,082
SQFT
7109 Whispering Oaks Dr
Austin, TX 78745
Whispering Oaks 01 Subdivision
New Listing - a week online
$249,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,340
SQFT
11713 Channing Dr
Austin, TX 78748
Morningside Subdivision
New Listing - 3 weeks online
$249,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,245
SQFT
300 Shep St
Austin, TX 78748
Park Ridge Subdivision
$249,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,183
SQFT
718 SHINY ROCK Dr
Austin, TX 78748
TEXAS OAKS SEC 7 C Subdivision
$249,950
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,092
SQFT
3215 Plantation Rd
Austin, TX 78745
Oak Plantations Subdivision
$250,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,364
SQFT
10528 BILBROOK Pl
Austin, TX 78748
TEXAS OAKS SEC 7 A Subdivision
New Listing - a week online
$250,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,235
SQFT
5905 Glen Meadow Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 10 Subdivision
New Listing - 2 weeks online
$250,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,623
SQFT
1406 Sahara Ave
Austin, TX 78745
Southwest Park Sec 02 Amd Subdivision
Price Change - 2 weeks ago
$255,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,566
SQFT
9903 Woodshire Dr
Austin, TX 78748
Tanglewood Forest Sec 02 Ph A Subdivision
$255,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,075
SQFT
5710 Cherry Park
Austin, TX 78745
Cherry Creek East Subdivision
$256,977
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,282
SQFT
11602 Koolie Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 6 days online
$257,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
982
SQFT
407 Meadow Lea Dr
Austin, TX 78745
Meadow Creek Sec 01 Subdivision
New Listing - 3 weeks online
$259,500
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,020
SQFT
6101 Harwin Ln
Austin, TX 78748
Southwest Park Sec 02 Amd Subdivision
$259,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,699
SQFT
1600 Dittmar Oaks Cv
Austin, TX 78748
Dittmar Crossing Subdivision
New Listing - 4 weeks online
$259,990
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,393
SQFT
12124 Broten St
Austin, TX 78748
Rancho Alto Subdivision
New Listing - 3 weeks online
$260,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,267
SQFT
8925 Vigen Cir
Austin, TX 78748
Park Ridge Subdivision
New Listing - 4 days online
$260,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,572
SQFT
8606 Birmingham Dr
Austin, TX 78748
Buckingham Estates Ph 3 Sec 5 Subdivision
New Listing - 2 weeks online
$260,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,552
SQFT
7500 Shadowridge Run #16 #16
Austin, TX 78749
Laurels At Legend Oaks Ph 02 A Condo Subdivision
$262,500
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,590
SQFT
1824 Canon Yeomans Trl
Austin, TX 78748
Canterbury Trails Sec Iii Subdivision
Price Change - 2 weeks ago
$264,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,233
SQFT
11321 Blairview Ln
Austin, TX 78748
Hillcrest Sec 04 Subdivision
New Listing - 6 days online
$265,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
2,005
SQFT
8821 Francia Trl
Austin, TX 78748
Park Ridge Subdivision
New Listing - 3 weeks online
$265,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,331
SQFT
9133 Texas Sun Dr
Austin, TX 78748
Texas Oaks 02 Subdivision
New Listing - 6 days online
$265,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,459
SQFT
3415 Clarksburg Dr
Austin, TX 78745
Southampton Sec 01 Subdivision
$265,000
Single Family Home For Sale
Pending Taking Backups
4
BED
2
TOTAL BATHS
1,566
SQFT
5405 Hunters Gln
Austin, TX 78745
Salem Walk Sec 02 Subdivision
$265,000
Condo For Sale
Active Contingent
3
BED
2
TOTAL BATHS
1,258
SQFT
6801 BECKETT Rd #111R #111R
Austin, TX 78749
Cottage Court Condo Amd Subdivision
$265,000
Condo For Sale
Active
3
BED
2
TOTAL BATHS
1,350
SQFT
1606 Catalan Rd #301 #301
Austin, TX 78748
Smithfield Condos Bldg 3 Subdivision
Foreclosure
$267,500
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,578
SQFT
10820 Gerald Allen Loop
Austin, TX 78748
Reserve At Slaughter Creek Subdivision
New Listing - a week online
$269,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,714
SQFT
1801 Rockland Dr
Austin, TX 78748
Sweetwater Glen Condo Amd Subdivision
New Listing - 2 weeks online
$269,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,466
SQFT
707 Shiny Rock Dr
Austin, TX 78748
Texas Oaks Sec 07-C Subdivision
Price Change - 2 weeks ago
$269,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,540
SQFT
8017 Burley Bnd
Austin, TX 78745
Southampton Hills 03 Subdivision
New Listing - 3 weeks online
$270,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,375
SQFT
2637 Gate Ridge Dr
Austin, TX 78748
Southland Oaks Sec 04 Ph B Subdivision
New Listing - 2 weeks online
$272,000
Single Family Home For Sale
Active
4
BED
2
TOTAL BATHS
1,612
SQFT
12005 Buzz Schneider Ln
Austin, TX 78748
Rancho Alto Ph 01 Subdivision
Price Change - a week ago
$272,500
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,507
SQFT
2411 Marcus Abrams Blvd
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
$272,537
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1503 Airedale Rd
Austin, TX 78748
Smithfield Subdivision
$272,836
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1511 Catalan Rd
Austin, TX 78748
Smithfield Subdivision
$273,811
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11603 Karst
Austin, TX 78748
Smithfield Subdivision
Price Change - 3 weeks ago
$274,500
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,398
SQFT
12325 Barras Branch Dr
Austin, TX 78748
Gabardine Condo Subdivision
$274,900
Single Family Home For Sale
Active
4
BED
2
TOTAL BATHS
1,335
SQFT
303 Craigmont Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 09 Subdivision
$274,900
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11604 Koolie Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$274,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
2,112
SQFT
8701 Kimono Ridge Dr
Austin, TX 78748
Laurelwood Estates Subdivision
$275,000
Single Family Home For Sale
Active Contingent
3
BED
1
TOTAL BATHS
962
SQFT
500 Treys Way
Austin, TX 78745
Flournoys Sweetbriar Sec 07 Subdivision
Price Change - 2 weeks ago
$275,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,714
SQFT
1616 Kemah Dr #116 #116
Austin, TX 78748
Sweetwater Glen Condo Amd Subdivision
Price Change - 2 weeks ago
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,900
SQFT
2209 Kaiser Dr
Austin, TX 78748
Hillcrest Sec 02 Subdivision
New Listing - 6 days online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
1,128
SQFT
1402 Green Forest Dr
Austin, TX 78745
Greenwood Forest Sec 02 Subdivision
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,186
SQFT
2700 Pectoral Dr
Austin, TX 78748
Pheasant Run Sec 01-A Subdivision
New Listing - 6 days online
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,326
SQFT
9105 Wagtail Dr
Austin, TX 78748
Pheasant Run Sec 01 Subdivision
New Listing - 4 weeks online
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,247
SQFT
8104 HUDDLESTON Ln
Austin, TX 78748
Parkwood Sec 04 Subdivision
New Listing - 7 days online
$275,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,213
SQFT
5618 Porsche Ln
Austin, TX 78749
Westcreek Ph 03 Sec 05 Subdivision
New Listing - a week online
$275,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,909
SQFT
2400 Wilma Rudolph Rd
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - 3 weeks online
$276,992
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11802 Malamute Rd
Austin, TX 78748
Smithfield Subdivision
$277,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
940
SQFT
6205 Harwin Ln
Austin, TX 78745
Southwest Park Sec 02 Amd Subdivision
$277,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,590
SQFT
11213 Jim Thorpe Ln
Austin, TX 78748
Olympic Heights Sec 02 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