The capital of Texas has been all over the national news lately. It’s a great place to live, find a job, raise a family… It’s also the live music capital of the word and home the the famous Mexican martini. But the topic that keeps Austin newsworthy is the real estate investment potential. Simply put, Austin is a hot market for both residential and commercial real estate. Why? According to Forbes, ”Austin looks like a great buy right now with a projection population growth of 16% and three-year home price forecast of 5%.”
Click here to read the full article…
Another great article by residential housing expert and business journalist, Francesca Levy, boasts Austin as a solid investment vehicle “thanks to their strong pre-recession population growth, slowing home-price drops and a mix of jobs that’s weighted toward growth industries like government and education.”
All indicators point to Austin, Texas as a stable market to invest in, yet you still need to look for the most profitable deals. Realtors can show you what is on the market, but you’re not going to find the best bang for your buck on the MLS…. The best deals are typically going to be at the foreclosure auction.
NOTE: Good foreclosure deals in Austin are currently very secure due to the stable real estate market and increasing population. We are currently in a seller’s market.
Things you need to know about the Travis County Foreclosure Auction:
- occurs the first Tuesday of every month on the courthouse steps
- you can purchase a property for 60% of its market value
- properties are paid for in cash (cashier’s checks, money orders) in full
QUESTIONS OR COMMENTS?
How much money you can make rehabbing foreclosures really depends on what price range you are dealing with. And, just to be clear: flipping like it used to be will never be the same. The only profits worth going after (in terms of less risk) are at the foreclosure auction.
Here’s an example of a realistic profit margin in Austin, TX:
If you were to spent $65K to $70K on a property (with rehab costs usually end up at $10-$15K), you could put it back on the market at market value for $120-$130K.
Total estimated profits: $30K – $45K.
NOTE: This is for an entry-level house in Austin, TX. Mid or high-level houses usually have less rehab costs and larger profit margins, but they typically are on the market longer, too.
This foreclosure was purchased for $67K
After rehabbing the property, I was able to sell for $119K
On April 14th, 2010, Forbes announced Austin TX as one of the top ten best U.S. cities for business and careers. Why? Mostly because of the stable housing market, but also due to “green” industry and government job growth.
So what does this mean?
It means, if you have the cash to invest in Austin real estate, do it now. With so many people moving here, property values have only one place to go: up.
fastest growing cities
At the Austin foreclosure auction, where you can pick up a property at 60% of it’s value, renovate it, and put it back on the market. It’s a complicated process, but it doesn’t have to be.
Purchasing foreclosed properties in Austin Texas isn’t easy, but the payout is worth it if you know what you are doing. There are lots of ins and outs to this game and, luckily, I have been fortunate enough to have met the right people.
Here are just some initial details:
The Austin foreclosure auction takes place the first Tuesday of every month on the courthouse steps.
You need cash in the forms of cashiers checks, properties must be paid for in full the day of the auction. If you do not have the exact increments, you will get a refund in the mail for the difference.
Most of the properties need a decent amount of work. Get to know a good, reliable, and efficient local contractor.
There could be tax liens on the property you purchase, so do your research before hand.
There are approximately 700 properties to research per month. Not every property ends up for sale.