Thurs, Jan 8th - Will 2009 be the year real estate fortunes are made?   No one knows, of course. But the market has to eventually "bottom out". Most experts are predicting this will occur some time in 2009.   We feel the biggest influence on residential property values in 2009 will come when the federal government begins its efforts to stimulate home purchases, probably some time in February or March.   The incoming administration understands that home purchases have a tremendous "multiplier effect" (every $1 spent on a new home actually represents $5 or more that filters through the economy). Therefore, expect even lower mortgage rates, tax incentives, and a laxing of the 4 investment property ownership limit - the single worst idea we've seen in years.   Most duplex and fourplex property in Central Texas hasn't seen much drop in value (and in many neighborhoods - any). As rents keep rising (the increasing number of people who can't buy houses need to live somewhere), few owners are selling. Even though buyers are fewer, it's less relevant when there are also few sellers.    We've read three great books over the Holiday that are worth mention - Malcolm Gladwell's Outliers is fantastic, providing yet another excellent insight into the social and economic dialogue. Richard Branson's Business Stripped Bare: Adventures of a Global Entrepreneur is excellent - there's no one else on earth that is as smart as this guy. Finally, Donahue Peebles' The Peebles Path to Real Estate Wealth: How to Make Money in Any Market - this guy is very smart, and has a great way of explaining real estate investment that we find very accessible.   Have a great 2009, and please let us know if we can assist you in building wealth through real estate this year. - Robert Grunnah Top 10 Foreclosure List Week of 1/8/09 BELOW $100,000 4413 Magin Meadow Dr, Austin, TX 78744 Great southeast location near Onion Creek Park. School District: Austin ISD Asking Price: $82,800, 1012 sq ft. 3/2, built in 2005 Lease: $925/month, Cap Rate: 9% Monthly Positive Cash Flow: $249 Pro Forma Value in 5 yrs: $112,065; 5 yr ROI: 53% 9% under recent sales comps, 8% under tax appraisal 18013 Honey Locust Ln, Elgin, TX 78621 Small town charm with easy access to 130 tollway School District: Elgin ISD Asking Price: $85,000, 1102 sq ft. 3/2, built in 2006 Lease: $900/month, Cap Rate: 9% Monthly Positive Cash Flow: $214 Pro Forma Value in 5 yrs: $115,330; 5 yr ROI: 51% 6% under recent sales comps, 9% under tax appraisal LOW $100,000's 12801 Wedding Dr, Manor, TX 78653 Nice small subdivision with easy access to 71, 130 and airport. School District: Bastrop ISD Asking Price: $100,000, 1498 sq ft. 3/2/1, built in 2002 Lease: $925/month, Cap Rate: 8% Monthly Positive Cash Flow: $167 Pro Forma Value in 5 yrs: $149,126; 5 yr ROI: 59% 14% under recent sales comps, 2% under tax appraisal 7308 Gunnison Pass Austin, TX 78724 Quick and easy access to north employers. School District: Austin ISD Asking Price: $102,000, 1268 sq ft. 3/2, built in 2005 Lease: $1000/month, Cap Rate: 8% Monthly Positive Cash Flow: $210 Pro Forma Value in 5 yrs: $163,415; 5 yr ROI: 73% 20% under recent sales comps, 23% under tax appraisal 11511 Hereford St, Manor, TX 78653 Near Shadow Glen Golf course and 130 School District: Manor ISD Asking Price: $103,000, 1919 sq ft, 4/2/1, built in 2005 Lease: $1125/month, Cap Rate: 9% Monthly Positive Cash Flow: $280 Pro Forma Value in 5 yrs: $139,604; 5 yr ROI: 52% 6% under recent sales comps, 32% under tax appraisal 11809 Bastrop, Manor, TX 78653 Hop on 290 or 130 and get to wherever you need to go! School District: Manor ISD Asking Price: $105,000, 2140 sq ft. 4/2/1, built in 2002 Lease: $1175/month, Cap Rate: 9% Monthly Positive Cash Flow: $308 Pro Forma Value in 5 yrs: $161,143; 5 yr ROI: 71% 17% under recent sales comps, 32% under tax appraisal 216 Spillway, Kyle, TX 78640 Kyle location is great for schools and access to shopping School District: Hays ISD Asking Price: $107,100, 1524 sq ft, 3/2, built in 2003 Lease: $1050/month, Cap Rate: 8% Monthly Positive Cash Flow: $214 Pro Forma Value in 5 yrs: $163,384; 5 yr ROI: 65% 16% under recent sales comps, 19% under tax appraisal 12253 Abbey Glen Ln #D, Austin, TX 78753 Pflugerville ISD makes this a great deal School District: Pflugerville ISD Asking Price: $112,900, 1722 sq ft. 3/2/1, built in 2002 Lease: $1225/month, Cap Rate: 8% Monthly Positive Cash Flow: $104 Pro Forma Value in 5 yrs: $250,544; 5 yr ROI: 127% 42% under recent sales comps, 39% under tax appraisal $120,000's - $150,000's 338 Paddington, Kyle, TX 78640 Great Kyle location for schools, shopping, commuting School District: Hays ISD Asking Price: $130,700, 2452 sq ft. 4/2/1, built in 2006 Lease: $1175/month, Cap Rate: 7% Monthly Positive Cash Flow: $182 Pro Forma Value in 5 yrs: $206,543; 5 yr ROI: 66% 19% under recent sales comps, 20% under tax appraisal 12712 Wood Lily, Elgin, TX 78621 Elm Creek subdivision outside of Elgin School District: Elgin ISD Asking Price: $174,500, 4122 sq ft. 6/3/1, built in 2006 Lease: $2000/month, Cap Rate: 10% Monthly Positive Cash Flow: $539 Pro Forma Value in 5 yrs: $357,737; 5 yr ROI: 124% 38% under recent sales comps, 26% under tax appraisal *ROI formula: ((Value in 5 yrs+ 5 yr net cash flow) - Purchase Price) / Purchase Price   *Cash flow is assuming 30% monthly expenses Robert Grunnah 1400 S Congress Ave Castle Hill Investments, LLC 512-444-2299

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