Another article discussing the Texas Investment Real Estate.
Good if you own,but for buyers look for returns (cap rates ) to go down. Try to find rehabs and turn them to rentals (rehab2rental)
As an investor who owns a handful of homes I can assure that my partners and myself have never purchased a home in tip top condition. Typically we find something in distressed or something that has enough problems (ie. roof, foundation, missing appliances, general “poor” condition) so that we can buy under market and attain the right returns. I look for at least a 1.5 multiple in stronger markets (better areas) and almost 2x in median income areas.
Ex: purchase and repair for 80,000 – target rent 1400-1600. Thats hard to do in Austin, but in other areas of Texas it can be done if purchased right.
Texas Rehab Loans – for more