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.

Foreclosure
$198,000
Single Family Home For Sale
Pending
4
BED
2
TOTAL BATHS
1,908
SQFT
5911 Nancy Dr
Austin, TX 78745
Windswept Acres Sec 02 Subdivision
New Listing - 3 days online
$200,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,401
SQFT
10310 Bilbrook Pl
Austin, TX 78748
Texas Oaks 05 Subdivision
$224,999
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,290
SQFT
10601 Marshitahs Way
Austin, TX 78748
Saddlewood Estates Sec 02 Subdivision
Price Change - 6 days ago
$225,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
964
SQFT
801 Easy Day Cv
Austin, TX 78745
Turtle Creek Estates Sec 01 Subdivision
New Listing - 2 weeks online
$229,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,167
SQFT
1721 Friars Tale Ln
Austin, TX 78748
Canterbury Trails Sec 03 Subdivision
New Listing - 2 weeks online
$235,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,290
SQFT
10828 Old Manchaca Rd
Austin, TX 78748
Saddlewood Estates Sec 01 Subdivision
New Listing - 4 days online
$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
New Listing - 3 weeks online
$239,500
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,271
SQFT
1412 Canon Yeomans Trl
Austin, TX 78748
Canterbury Trails Sec 02 Subdivision
New Listing - 4 weeks online
$239,999
Townhouse For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,231
SQFT
11413 Lost Maples Trl
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
New Listing - 3 weeks online
$240,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,271
SQFT
1400 SW Merchants Tale Ln
Austin, TX 78748
Canterbury Trails Sec 04 Subdivision
$245,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,922
SQFT
11409 Lost Maples Trl
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
New Listing - 2 weeks online
$245,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,922
SQFT
11417 Lost Maples Trl
Austin, TX 78748
Ravenscroft Twnhms Amd Subdivision
New Listing - 2 weeks online
$249,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,346
SQFT
8527 CORNWALL Dr
Austin, TX 78748
BUCKINGHAM ESTATES Subdivision
Price Change - 2 weeks ago
$249,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1515 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 4 days online
$250,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
958
SQFT
1110 Speer Ln
Austin, TX 78745
Austin Highlands Sec 03 Subdivision
New Listing - 3 weeks online
$255,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,718
SQFT
1400 Sir Thopas Trl
Austin, TX 78748
Canterbury Trails Sec 05 Subdivision
Price Change - 4 weeks ago
$255,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,439
SQFT
1401 Merchants Tale Ln
Austin, TX 78748
Canterbury Trails Sec Iv Subdivision
New Listing - 4 weeks online
$259,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,424
SQFT
9706 Nightjar Dr
Austin, TX 78748
Tanglewood Forest Sec 02 Ph E Subdivision
New Listing - 2 weeks online
$259,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,422
SQFT
2207 Billy Fiske Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
$259,900
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,149
SQFT
8110 Cattle Dr
Austin, TX 78749
Maple Run Sec 04-A Subdivision
Price Change - 2 weeks ago
$259,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1503 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
$259,999
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,422
SQFT
11603 James B Connolly Ln
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
New Listing - a week online
$262,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,177
SQFT
2645 Piping Rock Trl
Austin, TX 78748
Tanglewood Forest Sec 02 Ph C Subdivision
New Listing - 2 weeks online
$263,493
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11703 Akita Path
Austin, TX 78748
Smithfield Subdivision
$265,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,485
SQFT
11009 Gerald Allen Loop
Austin, TX 78748
Reserve At Slaughter Creek Subdivision
New Listing - 4 days online
$265,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,422
SQFT
1501 Canon Yeomans Trl
Austin, TX 78748
Canterbury Trails Sec 02 Subdivision
Price Change - 4 days ago
$265,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,552
SQFT
7501 Shadowridge Run #128 #128
Austin, TX 78749
Laurels At Legend Oaks Ph 02 A Condo Subdivision
New Listing - 6 days online
$265,000
Single Family Home For Sale
Pending Taking Backups
4
BED
2
TOTAL BATHS
1,636
SQFT
8308 Peaceful Hill Ln
Austin, TX 78748
Schwartz Otto Subdivision
Price Change - 3 weeks ago
$268,746
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1403 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
New Listing - 3 weeks online
$269,000
Single Family Home For Sale
Pending Taking Backups
3
BED
1
TOTAL BATHS
1,229
SQFT
6013 Glen Meadow Dr
Austin, TX 78745
Flournoys Sweetbriar Sec 09 Subdivision
$269,490
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11802 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$269,900
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 - 4 days online
$269,900
Single Family Home For Sale
Active Contingent
4
BED
3
TOTAL BATHS
1,439
SQFT
2404 Jesse Owens Dr
Austin, TX 78748
Olympic Heights Sec 02 Subdivision
Price Change - 2 weeks ago
$269,935
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1504 Airedale
Austin, TX 78748
Smithfield Subdivision
$269,958
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
11803 Bracco Dr
Austin, TX 78748
Smithfield Subdivision
$270,243
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,532
SQFT
11803 Frenchie Ln
Austin, TX 78748
Smithfield Subdivision
Price Change - 3 weeks ago
$271,018
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1416 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$272,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,469
SQFT
9900 Willers Way
Austin, TX 78748
Tanglewood Forest Sec 02 Ph A Subdivision
Price Change - 3 weeks ago
$273,014
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,532
SQFT
1410 Bichon Bnd
Austin, TX 78748
Smithfield Subdivision
Price Change - 2 weeks ago
$274,990
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
1505 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision
Price Change - 2 weeks ago
$275,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,436
SQFT
8508 Chick Pea Ln
Austin, TX 78748
Parkridge Gardens Subdivision
$279,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,720
SQFT
1914 Rockland Dr
Austin, TX 78748
SWEETWATER GLEN Subdivision
New Listing - 2 weeks online
$279,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,590
SQFT
1809 Monks Tale Ct
Austin, TX 78748
Canterbury Trails Sec 03 Subdivision
New Listing - 3 weeks online
$279,990
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,661
SQFT
10832 Gerald Allen Loop
Austin, TX 78748
Reserve At Slaughter Creek Subdivision
New Listing - 3 weeks online
$280,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,293
SQFT
6211 Middleham Pl
Austin, TX 78745
Buckingham Meadows Subdivision
New Listing - 3 weeks online
$280,000
Single Family Home For Sale
Pending Taking Backups
3
BED
2
TOTAL BATHS
1,016
SQFT
1304 Turtle Creek Blvd
Austin, TX 78745
Southwest Park Subdivision
$280,000
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,276
SQFT
4603 Raintree Blvd
Austin, TX 78745
Greenwood Forest Sec 01 Subdivision
New Listing - 2 weeks online
$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 - 3 weeks online
$280,368
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11608 Landseer Dr
Austin, TX 78748
Smithfield Subdivision
$280,950
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11804 Malamute Rd
Austin, TX 78748
Smithfield Subdivision
New Listing - 4 weeks online
$282,000
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,590
SQFT
1725 Canon Yeomans Trl
Austin, TX 78748
Canterbury Trails Sec 03 Subdivision
New Listing - 4 weeks online
$282,084
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
11800 Frenchie
Austin, TX 78748
Smithfield Subdivision
New Listing - 2 weeks online
$282,262
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,736
SQFT
11705 Akita Path
Austin, TX 78748
Smithfield Subdivision
Price Change - 6 days ago
$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
$284,500
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,713
SQFT
1133 Brecon Ln
Austin, TX 78748
Parkwood Sec 03 Subdivision
New Listing - 2 weeks online
$284,569
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
1,667
SQFT
1304 Tenon Cv
Austin, TX 78748
Summerrow Subdivision
Price Change - 5 days ago
$284,860
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
New Listing - 3 days online
$284,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,590
SQFT
11244 Pardoners Tale Ln
Austin, TX 78748
Canterbury Trails Sec 04 Subdivision
New Listing - 4 days online
$284,900
Single Family Home For Sale
Pending Taking Backups
3
BED
3
TOTAL BATHS
1,718
SQFT
1421 Sir Thopas Trl
Austin, TX 78748
Canterbury Trails Sec 05 Subdivision
New Listing - 6 days online
$284,990
Condo For Sale
Pending
3
BED
3
TOTAL BATHS
1,736
SQFT
1517 Bedlington Ln
Austin, TX 78748
Smithfield Subdivision