It’s not hard to see why so many people are interested in buying investment properties in Austin, TX. The problem is there are so many competitive bidders and buyers that it’s intimidating even for seasoned investors. Housing inventory is relatively limited, prices are rising, and in some cases, houses are sold in a matter of days.
How are you supposed to find a good investment property in the competitive Austin area?
Austin has grown to be an incredibly popular area for real estate. There are several factors responsible for this, including general qualities of Austin and recent developments in economic, cultural, and political areas.
For example:
· Climate. Austin has excellent weather and beautiful scenery, making it appealing to people all over the country.
· Industry. The economy of Austin is thriving, with significant employers, high employment rates, and entrepreneurial opportunities in spades.
· Culture/the arts. Some people have flocked to Austin because they appreciate it as a hub for culture and the arts. Talented creatives from many disciplines have ended up here.
· Politics. Austin is a relatively progressive city in a relatively conservative state, making it at least potentially appealing to a wide spectrum of people with various beliefs and backgrounds.
· Snowballing appeal. Once people started flocking to Austin, Austin became more newsworthy and more frequently discussed, ultimately resulting in a sort of snowball effect of popularity.
With all this in mind, is Austin too hot of an area for real estate investors? In other words, is inventory too limited and are prices too high to validate an investment point of entry?
The short answer is no.
· There are always good deals if you know where to look. First, remember that there are always good real estate deals if you know where to look. Just because prices are generally high in an area doesn’t mean there aren’t any properties worth buying, and just because there are a lot of competitive bidders doesn’t mean you’re always going to be outbid.
· The market is likely to continue growing. Austin’s past and present are quite attractive, but so is its future. Even if you’re forced to spend a bit more money than you’d like, you can still secure an amazing property that will serve you well years and decades into the future.
· Time is on your side. Real estate investing is generally a long game. If it takes months or even years to find good properties to add to your portfolio, that’s alright. As long as you’re willing to remain patient, you’ll eventually find perfect new additions to your portfolio.
Considering all of this, how do you find an ideal investment property in the competitive Austin area?
· Know what you’re looking for. You can start by getting a firm grasp on what you’re looking for. What type of property do you want? What is your upper limit price? What kind of rent will you need to charge? How are you going to balance your real estate portfolio?
The more specific you are, the better. Instead of browsing a huge market of expensive potential properties, create a finite list of criteria you can use to objectively filter that list down. This way, you’ll only concentrate on properties with potentially significant value to your portfolio, and you won’t waste time on properties outside your specified criteria.
· Keep an open mind. Next, keep an open mind. There are many areas, neighborhoods, and suburbs to explore around Austin, so challenge yourself to explore all of them. You may find a beautiful investment property in an area where you least expect it. Similarly, it may be in your best interest to consider properties you ordinarily wouldn’t consider.
For example, imagine there’s a property that requires significant repairs and upgrades before it can be marketed; ordinarily, you may avoid this type of property because you don’t want the extra risk or uncertainty. However, if you’ve been consistently outbid for turnkey properties in the area, buying a fixer upper could be a way to avoid competition.
· Hire a good real estate agent. A good real estate agent can help you find diamonds in the rough. They can help you better understand and clarify your buying criteria. They can help you sniff out good deals on the market. They may even be able to help you find off-market properties. On top of that, they can help you with generating offers, negotiating deals, and seeing those deals through to fruition. Having an expert at your side is invaluable.
· Network aggressively. Networking is important for almost any professional, but it’s especially valuable for real estate investors. Connect with people in the Austin area and keep developing your real estate network. Make it known that you’re interested in buying investment properties, and ask your contacts to spread the word. It’s one of the best ways to find off-market deals.
· Make offers. If you’re feeling ambitious, you can also make offers on properties that aren’t currently listed for sale. You can post signs, distribute flyers, or even advertise on billboards that you’re willing to buy properties in cash. Some homeowners not currently interested in selling may become interested in selling once they see your offer.
· Don’t abandon your key criteria (remain patient). Finally, remain patient. Even if you do everything right, it may be a while before you find a property worth bidding on, and even then, it’s possible you will be outbid. Feel free to modify your key criteria, but only after significant patience and due diligence; don’t impulsively abandon these metrics.
Are you currently looking for an investment property in the Austin area? Do you need the guidance or support of a team of real estate agents to help you do it? Or are you interested in managing your property with the help of a property management company? Green Residential can help. Contact us for more information today!
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