Providing insider knowledge for investors from outside the Austin area is key to helping them find and acquire properties. This includes tracking the evolution of the entire Austin-Round Rock MSA and considering how growth may develop as Austin continues to expand. It also means digging into the history of an area to find the weaknesses and strengths of building practices and infrastructure. Understanding the technical aspects of buying and leasing a residential investment property is critical to a profitable investment formula. However, that knowledge doesn’t always translate into deciding on and successfully negotiating for the desired property. In this highly competitive market, submitting a winning bid is a make-or-break moment for each investor.
Since the beginning of 2021, all markets began to heat up, but the Austin market vastly outpaced the growth of other areas and Savannah’s focus has been entirely on submitting the winning bid for her investor clients. By watching the market carefully, nurturing relationships with listing agents, and staying informed on successful contract writing techniques, Savannah was able to win 9 contracts for her clients against 50+ other offers in the under $500,000 price range. This price range is by far the most competitive price range in the Austin area. While other agents were submitting 20+ offers for clients to win 1 contract, Savannah was closing business within less than 3 offers.
Investment Property Analysis
Every Realtor does property analysis. It’s in the job description. But what isn’t in the job description is how to find hidden pitfalls that can consume profits. When analyzing a property for any purchaser, Savannah’s goal is to learn as much about the property as possible. These are some important considerations about any property:
- Does the HOA have limits on the number of units that can be leased in the neighborhood?
- Does the HOA have special rules that apply to lease properties?
- What is the tax rate? If the property increases in value, is it likely that the tax rate may create a negative cash flow situation?
- How mature is the area? How will the building of schools and infrastructure impact the taxes as the community continues to grow?
- What kinds of geological features exist where the property is located? Is the area prone to foundation issues?
- In previous MLS listings for the property, are there mentions of recent HVAC or roof replacement if the seller doesn’t have the documentation to disclose this information.
- What other information can be found in previous MLS listings for the property?
Property analysis is more than answering the 2 fundamental questions of how much an investor can buy and rent a property for. As a Realtor, Savannah can’t do a professional property inspection, appraisal, or title research. But she can help you understand as much as possible about your target property before you make an offer on it.
Market Growth Patterns
Staying informed on where employers are buying land and how quickly the infrastructure can be developed to support emerging growth is key to being knowledgeable about hotspots where demand is likely to increase. But understanding patterns of Austin’s growth also comes from watching that growth over the years.
Savannah has seen and experienced Austin’s evolution from a college town and county seat to an international hub expanding to include a 5 county MSA. She’s been in the communities working with small businesses and organizations for over 3 decades. As a college student, she was involved in the premiere broadcast of the first year of SXSW and watched Round Rock grow to meet Austin’s city limits as Dell completed the construction of its headquarters.
These experiences, along with staying informed on corporate and municipal behavior give Savannah the ability to keep her investor clients informed. Property prices obviously follow growth. With excellent information and a little experience, an investor may be able to buy a property before the prices start to increase.