| Central Texas Investment Property Update - May 27, 2009 |
Recently there have been a number of newspaper articles describing our new post-recession attitude about money.
My favorite headline so far is "Good Is the New Great", which suggests we're lowering our expectations, trying to identify what is truly important to us, and slowing our effort to keep up with the Joneses. (I have to wonder, though, how long we can really keep human nature at bay?)
This economic downturn has hit everyone I know. Adjusting to reduced income, a "simplified" lifestyle, and unrealized expectations, is of course stressful and disappointing.
As the clouds appear to be slowly parting from the real estate market, there do seem to be some winners coming to light. First time home buyers that were shut out for years while investors outbid them on properties are now able to find ample inventory and good deals on single family homes and duplexes in Central Texas.
From 2005 to 2007, the vast majority of duplex and fourplex buyers were investors, many from out of state. Today, the majority of buyers for our duplex listings are savvy owner occupants that are discovering duplexes are the best way to provide shelter, but also to dip one's toe into investment real estate. Why not let your tenant on the other side cover half or more of your monthly mortgage?
Though owner occupant buyers are certainly tougher customers to work with (pickier on inspections, more challenging loans), we're grateful that they have picked up the slack while the investors focused on more immediate financial concerns (few of which were their Austin rental properties, which have held up amongst the top 3% of world asset prices since 2007).Owner occupant buyers are the real heroes the past two years in keeping investment property values in largely positive territory.
Clients who have purchased duplexes that are considering selling soon should have a vacancy either coming up very soon, or at least one tenant on a month to month lease. Properties that are fully leased - once highly prized for a quick sale - now shut out any potential owner occupany, and are more difficult to sell. That said, most properties, regardless of condition, location, or tenant status, can be sold in a reasonable amount of time if the property is properly priced (your obligation) and marketed effectively (our obligation).
Those reading this email that are "upside down" on your mortgage and need to get out - call or email Robert today. Over the past year, our short sale team has handled an average of five short sales per month, without one failure to date.
I am also excited to see our buyer agent veterans tackle new niche markets this year:
Bryan Kosarek (email) has come out of the gate running full speed in an effort to connect to the community closest to him: University of Texas condo owners. As a recent grad himself, and a veteran of intensive investment sales over the past few years, Bryan already has fans of his effective sales methodology and "get it done" attitude. By late 2010, look to Bryan to hold the crown as top producing condo salesperson in the area.
In addition to flipping homes, Debbie DeBerry (email) has recently added north Austin rental property brokerage services to her area of focus. If you own a rental house anywhere Central North or further North, there's only one agent in the city with the unique knowledge of how to professionally sell your asset, regardless of tenant status or property condition. Debbie learned in the trenches helping investors during the hottest real estate period in years ('05-'07).
To our local owner occupant clients - what are you waiting for? Rates are low, there are a an increasing number of properties to choose from, and your window isn't going to last forever. Touch base with Heather Knight (email), our owner occupant specialist that will find you the ideal duplex to get started.
Our preferred lender, Amy Krause (email) can bring all buyers up to speed with current rules and regulations about getting loans. They're still a pain in the butt, but more people qualify for them than have in the psat couple of years, so please check in with Amy. - Robert Grunnah |
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Fourplex Value in South Austin
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Click Here for Virtual Tour
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| Fourplex |
- 1981 Construction/ Each unit is 2 Bedroom, 1 Bathroom/
2,976 Sq Ft
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A unit: $595/mo expires November 1, 2009/ B unit:
$650/mo July 30, 2009
- C unit: $550/mo expires November 15, 2009 D unit:
$550/mo November 2009
- Taxes: Approx $5,192 /year
Value priced. In
better condition than most fourplexes. Owner has managed herself for many
years. Tenants are responsible. Many recent improvements inside and out.
Pre-inspection available in attachments. Fully occupied with $2345 a month in
rent.
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South Austin Gem, Improved for Value
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Single Family
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- 1999 Construction /
4 Bedroom /3.5 Bath/
2,489 Sq Ft
- Taxes: Approx $3,771
Value! If you've
seen this one, look again - we've spent thousands of dollars improving this
one. Lowest and best price per square foot in the neighborhood. Walk to running
trails and fitness center. Spacious and light with a master bedroom that you
won't believe.
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Single Family Residence Value in South Austin
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Click Here for Virtual Tour
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| Single Family |
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- 1979
Construction / 4 Bedroom, 2 Baths/ 1,607
Sq Ft
- Taxes: Approx $3,556/yr
Under $100 per sq
ft! New paint and carpet. Large backyard on quarter acre lot in extremely
popular neighborhood. Value priced to sell.
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Exceptional South Central Remodel
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Click Here for Virtual Tour
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| Fourplex |
- 1971 Construction / Each unit is 2 Bedroom, 1.5 Baths/ 4,030 Sq
Ft
- A unit: $795/mo expires
July 31, 2009/ B unit: vacant
- C unit: $725/mo expires
March 31, 2010 / D unit: $795/mo expires July 31, 2009
- Taxes: Approx $5,405/yr
Exceptional 78704
remodel. Very "mod" exterior and cool updated interiors - make sure
you check out the Virtual Tour. One unit left vacant for savvy owner occupant,
or investor can actually cash flow this one. Full pre-inspection
available.
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A Reliable Cash Flow in the Technology Corridor
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Click Here for Virtual Tour
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| Duplex |
- 1984 Construction/ Each unit is 2 Bedroom, 2 Baths/ 1,777 Sq Ft
- A unit: $790/mo expires May 2009/ B unit: Vacant for Owner occupant, or $800+/mo mkt rent
- Taxes: Approx $4,073/ yr
Could be owner occupied! B unit tenant is moving out next week. Reliable cash flow on popular street near Domain mall. Always stays rented. Seller has put a lot of money into improvements the past few years.
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Opportunity to Create Value in Northwest Austin
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Click Here for a Virtual Tour
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| Duplex |
- 1984 Construction/ A unit: 2 Bed/ 2 Bath/
B unit: 3 Bed/2 Bath/
2,080 Sq Ft
- A unit: $725/month to
month/ B unit: vacant
- Taxes: Approx $4,139/yr
Recently renovated
B unit ready for owner occupant. Several thousand dollar paint job and make
ready - property now in great shape. FHA buyer could spend less than $7k and
have tenant next door paying $725/mo towards the mortgage. No Survey. B unit
vacant.
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Best Priced Duplex in Northwest Austin
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Click Here for Virtual Tour
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Duplex
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- 1981 Construction/ Each unit 2 Bedrooms, 1.5 Bathroom/ 2,007 Sq Ft
- A unit: $795/mo expires January 31, 2010/ B unit: Vacant for owner occupant or $850 mkt rent
- Taxes: Approx $4,649/yr
Best priced duplex on the market. Well-kept investment in quiet cul -de -sac. Possibility to Owner occupy with strong offer. One water meter for the building - owners pays $20-$30/mo for water bill.
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Northwest Hills Duplex Priced to Sell
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Click Here for Virtual Tour
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| Duplex |
- 1981 Construction/ Each
unit is 3 Bedrooms, 1.5 Bathroom/ 2,406 Sq Ft
- A unit: $970/mo expires
May 31, 2010/ B unit: $1,225/mo expires June 2009
- Taxes: Approx $6,014/yr
Best value in Northwest Hills - priced to sell. 6497
(unit on left) will be vacating June 30th, and unit 6495 has recently renewed
lease through May, 2010. Great owner occupant opportunity to live in Northwest
Hills with next door neighbor paying mortgage for you - or for
investor, increase rent for vacating unit. Seller is in process of replacing
roof, so buyer will get a new roof by closing.
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Suburban Fourplex Priced to Sell
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Click Here for Virtual Tour
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| Fourplex |
- 1984 Construction/ Each
unit is 2 Bedroom, 1 Bathroom/ 3,072 Sq Ft
- A unit: $525/mo expires
January 31, 2010/ B unit: $525/mo expires Feb. 28, 2010
- C unit: $525/expires June
21, 2009/ D unit: vacant
- Taxes: Approx $4,295/yr
Priced to sell quickly. Full pre-inspection
available. HVAC repairs to be performed Monday. "As is sale" only.
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| Condo |
- 1982 Construction/ 1
Bedroom, 1 Bathroom/ 634 Sq Ft
- Taxes: Approx $2,001/yr
Value! Lowest price
per sq ft in UT area. Complex sits on high cliff overlooking Lamar & Duncan
Park. Great UT student pad or investment.
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East Austin Duplex Value Priced for Quick Sale
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Click Here for Virtual Tour
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| Duplex |
-2002 Construction/
Each unit 3 Bedrooms, 2.5 Bathroom/ 2,921 Sq Ft
- A unit:
$1,100/month to month/ B unit: owner occupied
- Taxes: Approx
$4,840/yr
Value priced for
quick sale - 2002 construction, over 2900 sq ft close to downtown. Owner
is moving out of state and needs to sell. Both units to be vacant at time
of sale. Excellent opportunity to re-lease for over $1,000 per side, or
owner occupy with FHA loan and have neighbors pay large portion of mortgage.
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Reliable Cash Flow in East Austin
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Duplex
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- 1971 Construction/ Each
unit 2 Bedroom, 1.5 Bath/ 1,607 Sq Ft
- A unit: $635/month to
month/ B unit: $595/month to month
- Taxes: Approx $2,180/yr
Value priced to
sell. Reliable cash flow. Foundation deflection evident in back unit. Sold
"as is". Due to foundation settling, no FHA buyers will be considered
- cash, conventional, hard money, or construction loans only.
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