Central Texas Investment Property Update - November, 2009
The biggest news in the residential real estate industry right now is the imminent extension of the $8,000 homebuyer's tax credit.
 
We've seen a significant positive benefit from the tax credit in the Austin market. Most Realtors, homeowners, and first time buyers breathed a sigh of relief this week when Congress announced its extension (and expansion) through April of 2010.
 
While the vast majority of real estate investors continue to sit on the sidelines (thanks to dwindling net worth, reduced credit availability, and high down payment requirements), first time and even move-up homebuyers are keeping the duplex market afloat, and in some popular areas actually increasing overall median property values.
 
In a fortunate coincidence, the new American focus on frugality makes duplex ownership a smarter investment for many homeowners, who have decided that now might not be the best time to buy a large McMansion. After calculating how much lower their mortgage payment is with rental income from their neighbor's unit, and realizing that there are duplexes scattered throughout Austin's most desirable neighborhoods - people are coming to the conclusion that duplexes are a wise investment, indeed.
 
South Austin continues to be one of our most active markets right now. Well priced homes and duplexes are selling within days, very close to asking price. The magic price point in the market seems to be $200,000. If you're under, you're likely to get an offer. If you're over, you better have a fantastic property, or be priced significantly under the competition.
 
At Castle Hill Investments, we feel confident that 2010 will be a busy year for us, and the local real estate market. For the first year ever, Castle Hill Investments represented a buyer or seller in over 20% of the non-foreclosure duplex and fourplex transactions in the Central Texas area. And we did this with an average marketing period of 34 days versus our competition's mind-numbing average of 88 days on market. Our goal for 2010 is to increase our market share to 30%, while continuing to add value to the duplex and fourplex owner-occupant and investor community.
 
We've hired a smart, outgoing, and knowledgeable client relations manager named Bianca Roper, who will be contacting duplex and fourplex owners in the coming months to introduce herself. All area duplex and fourplex owners are eligible to receive the 2010 "Central Texas Small Multifamily Investment Report". Please call me at 512-444-2299 or email for more details or to get on the mailing list.
 
This Month's "Hot List": single family houses and duplexes in zip codes 78704, 78745, 78748, and 78749, properties priced under $200k, and properties in clean, good condition.
 
This Month's "Not So Hot List": duplexes and single family homes north of "the river", properties over $200,000, properties in any type of poor condition.
 
Stay in touch! - Robert 

(from left) Adrienne Laosa, Bianca Roper, Heather Kight, Robert Grunnah, Daniel Duffy, Daniel Wyler
 
 
 
South Austin
5213 Tahoe Trl
Offered at $199,900
Click Here for Virtual Tour

 Tahoe_Nov09

 Completely renovated urban fourplex - $2,500/mo Gross Rent
New on Market!

- Desirable "Central Market South" area close to downtown and 78704 
- Each unit has a private courtyard
- Estimated taxes: $3,545
- Insurance: $2100/year
- Owner pays water and gas, electric separately metered 
- 2,572 Sq. Feet, Built 1972

This is a Castle Hill Investments renovation! We purchased the property this year, then spent over $30,000 doing a gut remodel. We replaced the flooring with high quality Pergo material, replaced fixtures with Ikea lighting and plumbing, and installed new counters and cabinets. Excellent combination of current cash flow to high quality remodel.
Northwest Hills
6702 O'Henry Cv
Offered at $349,900
Click Here for Virtual Tour

 OH_nov09

Reduced over $100,000 - Motivated Seller
North Cat Mountain Duplex on a Hill Overlooking Canyon
Now $349,900 - The Closeout Price 

- 3,706 sq.ft!
- 3 bedrooms / 3 bathrooms per Unit
- Private hot tub per Unit
- Unit B year lease at $1300/month, perfect for owner occupant, or lease other unit for $1400/mo+
- Multi-level outdoor deck
 
Incredible value, and only priced this low because we need to get the property sold before the end of the year. Price per sq ft is literally under $90 - that's insanely below replacement value. Great schools, great location, and incredible vistas of the canyon in all directions. 
78704
3305 South Oak
Offered at $249,900
Click Here for Virtual Tour

 Southoak_nov09

Austin's Hottest Neighborhood - 78704
Updated Duplex, Leased for $2245/mo!
New on Market!

- 2/1 each unit on over-sized lot in desirable 78704 neighborhood
- Built in 1970, 1,824 square feet
- Dual Garages
- A unit: $1,095/mo Expires 8/31/10
- B unit: $1,150/mo Expires 11/30/09

Fabulous contemporary 78704-style remodel. Massive over-sized lot and backyard. 2007 updates include Pergo, S/S appliances, Ikea fixtures, and extensive fencing. Fully leased and ready to go, or B unit could be owner-occupied. Seller financing available with $100k down.
2105A Kinney Ave
Offered at $339,900
Click Here for Virtual Tour

 AKinney_Nov09

78704's Hottest Area: South Lamar Neighborhood
New on Market!

The energy of the South Lamar neighborhood is perfectly incorporated in this to-the-studs remodel of a traditional 30's bungalow. No expense was spared in the year-long renovation. High quality appliances, flooring, fixtures, and landscaping throughout. Perfect blend of modern meets classic restoration. 2105B Kinney is another house on same lot. Shares driveway but not parking. See agent for details.
2105B Kinney Ave
Offered at $289,900
Click Here for Virtual Tour

 Bkinney_nov09

78704's Hottest Area: South Lamar Neighborhood
New on Market!


The energy of the South Lamar neighborhood is perfectly incorporated in
this to-the-studs remodel of a traditional 30's bungalow. No expense was
spared in the year-long renovation. High quality appliances, flooring, fixtures,
and landscaping throughout. Perfect blend of modern meets classic
restoration. 2105A Kinney is another house on same lot. Shares driveway but
not parking. See agent for details.
South Austin
2617 Riddle Rd
Offered at $199,900
Click Here for Virtual Tour

 Riddle_nov09

Deep one-third acre, treed lot in popular Tanglewood
Investors: $1700/mo Market Rent or Great Owner-Occupant Duplex
New on Market!
- 2,279 Sq. Feet, Built in 1984
- Est. Taxes: $5,286/TCAD
- Unit A: 2/1.5, currently vacant for owner-occupant
- Unit B: 2/2.5, $775/mo Expires on 11/30/09

Tanglewood Owner Occupants - nicest, most "home-like" duplex on
the market in South Austin. Just vacated unit A has been made ready
and shines. Take advantage of that $8,000 tax credit while it still lasts,
and live in a great home with your tenant paying most of the mortgage.
7100 Woodhue Ct
Offered at $197,900
Click Here for Virtual Tour

 w_09

One of the nicest duplexes in South Austin we've ever seen
Great for owner-occupant, or investors: $1700/mo Rent Potential 

- 500 sq ft screened-in porch, Beautiful mature trees
- Minutes to downtown
- 2 Bedrooms / 1.5 Bathrooms each
- 1,959 Sq. Feet, Built in 1981

One of the nicest duplexes we've listed this year - would make *exceptional* owner-occupant property. Large corner lot in with one side on quiet cul de sac. Property has been well-maintained by current owner-occupant. 500 square foot
screened in porch, and lots of other upgrades. Recent paint, recent roof.
1019 Glen Oak
Offered at $149,900
Click Here for Virtual Tour

 Glen_09

South Austin Duplex - Value Priced and Motivated Seller
Will Discount Price $7125 in Lieu of Foundation Repairs

- 2 Bedrooms / 1 Bathroom Each
- Minutes from downtown, Spacious living rooms
- A Unit: $699/mo Expires on 6/30/10
- B Unit: $675/mo Expires on 9/30/10
- 1,702 Sq. feet
- Estimated taxes: $2,887

Bargain-priced value in popular neighborhood. Seller will discount price a further $7125 in lieu of making foundation repairs. Detailed foundation estimate available in attachments. Possible owner occupany opportunity with full price offer.
5808 Garden Oaks
Offered at SFR $149,900
Click Here for Virtual Tour

 gardenoaks_nov09

Large home in popular 78745 South Austin Neighborhood
New on Market
Great Rental ($1300/mo) or Owner-Occupant Home 

- 4 Bedrooms / 2 Bathrooms
- 1,267 Sq. Feet
- Built in 1970
- Hot tub in large backyard
- Located in popular 78745
- Estimated taxes: $2,804

Exceptional value. Updated and well-maintained home owned by same
family since 1974. Large backyard, great trees, and laminate flooring
inside.
East Austin
5406 Ponciana
Offered at $199,900
Click Here for Virtual Tour

 ponc_nov09

Great Value Duplex - Just Blocks from Interstate 35 (Downtown)
Newer Construction, $1950/mo Income, Under $200k
- 3 Bedrooms, 2 Bathrooms each
- Newer Construction
- Tile floors, Recent Appliances, Private backyards
- A unit: $900/mo Expires 10/01/10
- B unit: $1,050/mo Month to Month

Just two blocks from IH35 and occupied with great tenants who just renewed their lease. Recent construction, tile floors, newer appliances all require little to no maintenance! Three bedrooms and two bathrooms on each side and over 1200 SF per side create extremely desirable floor plans. At nearly 30K below TCAD this investment property is an incredible value!