Austin Residential Investment Property Update for Feb 18th, 2009
Central Texas Investment Property Update - February 18, 2009
Feb 18th - The high drama in the nation's political and financial arenas continues to prove that truth is definitely more interesting than fiction.
Barack Obama's administration released their housing plan today, and we are pleased to see the new $8,000 homebuyer tax credit (as opposed to a deduction, this is like money in the pocket). Combined with today's historically low interest rates, we feel the market will "tip" soon, and we'll see a wave of new buyers, a reduction of inventory, and a resumption of home values' upward climb, albeit at a more reasonable pace. Some investors have already been repositioning assets into real estate, reasoning it's time to end the helpless feeling caused by a 46% decline in US equity markets.
Further, the Administration's emphasis on encouraging lenders to renegotiate terms with struggling homeowners will be an indirect positive influence on property values. Fewer foreclosures means fewer fire sales, and neighborhoods that are able to retain their value.
Fannie Mae has also announced recently that it is relaxing restrictions on investors by allowing them to own up to 10 properties at a time. Last September, Fannie Mae had arbitrarily limited investors to only 4 non owner-occupied properties. This had a chilling effect on investment property purchases. Well documented investors with high FICO scores and strong income could not help reduce the glut of available inventory, and it became obvious that change was needed. Starting March 1st, well-qualified investors will be able to again have up to 10 mortgages.
If you'd like more information on the relaxing of this restriction, please contact your Castle Hill Investments' buyer agent, or our recommended lender, Amy Krause, at 512-219-5858 (amy@amykrause.com).
Duplex and fourplex values, particularly in areas closer to downtown, have not moved much at all, and in some cases, are still seeing multiple offers. There is precious little quality inventory on the market because owners are seeing record high rents, and clearly don't feel there are better alternatives for their investment capital. Owners in South Austin who have considered selling recently should contact us. They'll likely be pleased with their market value estimates.
Our "Instant Equity" program, launched last year, is helping motivated sellers of all property types to sell quickly.
In order to participate in the "Instant Equity" program, sellers are required to price their property properly - which is often a hair under area median comparables. This business model acknowledges that buyers in today's market (rightly or wrongly) have a deep concern about the value of their purchases six months to a year down the road. By offering these buyers a bona fide value, they have the excuse to take the leap that they may otherwise not take.
The proof is in the stats - average days on market for "Instant Equity" listings is only 14 days. And the properties are closing at close to 99% of list price. If you're ready to get your property sold, please see www.castlehillinvestments.com/instantequity for additional details, or call or email me for an estimate of your property's value.
For those folks that I've talked to over the years that miss Austin, here are a couple of news pieces to assure you that we are still quite weird. The Austin zombie invasion made international headlines. And if that wasn't strange enough, how about a fireball streaking out of the sky in broad daylight? Robert Grunnah
Deal of the Month: Value And Motivation
505 Lenora, Taylor, TX 76574
Offered at $109,900
Click Here for Virtual Tour
Duplex
- 1980 Construction / Each unit is 3 Bedroom, 1 Bathroom / 1768 Sq Ft
- A unit: $600/mo expires Nov 2009 / B unit: $550/mo Month to Month (could be increased)
- Taxes: Approximately $2,050/yr
- Pro forma available upon request
Nicest duplex in good school district area, and priced to move. Interiors are well cared for. New stoves in both units, W/D connections, roof replaced in 2008, fresh paint inside. Seller is motivated.
Owner Occupied Quality in Technology Corridor
1012 Fieldwood Dr, Austin, TX 78758
Offered at $144,900
Click Here for Virtual Tour
Duplex
- 1980 Construction / Each unit is 2 Bedroom, 1 Bathroom / 1672 Sq Ft
- A unit: Owner Occupied (Market Rent $700+) / B unit $700/mo Month to Month
- Taxes: Approximately $3,083/yr
- Pro forma available upon request
Seller just completed new roof installation and repaired siding - property is in superior condition to many in area. A unit is owner occupied and you can tell that owner has taken good care of the unit. Pre-inspection performed Feb 12th and available by request. Solid cash flow in a good rental area close to major Technology employers. This one will probably go quickly.
Fourplex Value in Technology Corridor
11809 Alpheus, Austin, TX 78759
Offered at $219,900
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Fourplex
- 1982 Construction / Each unit is 2 Bedroom, 1.5 Baths / 4,103 Sq Ft
- A unit: $675/mo expires February 2010 / B unit: $650/mo expires February 22, 2009
- C unit: Vacant ($675 market rent) / D unit: $675/mo expires June 2010
- Taxes: Approximately $5,361/yr
Fourplex value offered by motivated Californian. Close to major technology employers; stays rented. Comprehensive inspection available for buyer's review (performed Feb 4th). Not a short sale, but sold "as is". Good bargain, current cash flow, and strong appreciation potential.
Single Family Neighborhood in All Directions
4603 Brown Bark Pl
Austin, TX 78727
Offered at $184,900
Duplex
- 1983 Construction / Each unit is 2 Bedroom, 2 Baths / 1777 Sq Ft
- A unit: $825/mo expires September 2009 / B unit $775/mo expires December 2009
- Taxes: Approximately $3,721/yr
One of our favorite duplex streets, because most of the neighborhood (Milwood) is single family homes. Tucked away, but close to everything. Property is on one water meter.
Reduced - 3,200 Sq Ft on Great Old Oak Treed Lot in Technology Heavy Area
8414 Fathom Cir, Austin, TX 78750
Offered at $224,900
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Fourplex
- Constructed in 1981 / 3 Bedroom, 2.5 Bathroom Each Unit / 3202 Sq Ft
- A unit: $925/mo expires May 2009 / B unit $925/mo expires April 2009
- Taxes: Needs to be Disputed with county this year - out of whack with reality (ask us)
Largest duplex floor plan in Austin - fantastic for owner occupant to live in great area and have next door tenant paying the mortgage. For investor, excellent store of value - in our opinion, very unlikely to lose value, and less expensive then replacement cost. Seller will install new roof for buyer.
3 Fourplexes (12 Units)
Opportunity to Create Value
1903, 1905 and 1907 West Loop, Austin, TX 78758
Offered at $219,900 ea, package price negotiable
3 Fourplexes
- Constructed in 1982 / All units 2 Bedroom, 2 Bathroom / 4,124 sq ft per building
- Units lease for up to $750/mo / Leases available by request
- Taxes: Approx $4,933/yr / - HOA is $450/mo per building
Three contiguous fourplexes that have been poorly managed until recently. Fourplexes were selling up to $300,000 in this complex, and have been hit lately due to out of state owners' neglect. Now, new owners have come in and cleaned up the complex. These are probably the lowest prices that fourplexes in the complex will sell for, and the seller has already asked us to remove them from the market. Monthly HOA fee covers water, trash, landscaping and cable to the units. Tenants pay their own electricity.
Exclusive Barton Hills Owner Occupant Opportunity
2012 Westridge Dr, Austin, TX 78704
Offered at $349,900
Click Here for Virtual Tour
Duplex
- Constructed in 1975 / A is a 2/1.5 and B is a 2/2 / 1,908 sq ft
- A unit: $1,175/mo expires March 2009 / B Unit left Vacant for Owner Occupant (or $1400/mo)
- Taxes are Approximately $6,601/yr
The smartest way to live in Barton Hills. Let your neighbor pay $1,175 towards your mortgage every month while you enjoy a beautiful hill country view on valuable real estate. Both units are modern and updated recently with huge backyards. There is no "veto" here - this is simply smart investing for your future.
Lakeway Duplexes Priced to Move
520 Cutty Trl
Lakeway, TX 78734
Offered at $182,500
Duplex
- Constructed in 1984 / A Unit is a 2/2 and B Unit is a 3/2 / 1797 sq ft
- A unit: $750/mo Month to Month / B unit: $785/mo expires July 2009
- Taxes are Approximately $4,427/yr
One of only two realistically priced duplexes in Lakeway (see below for #2) - live lakeside and let your neighbor pay most of your mortgage! A unit is month to month, so owner occupant could move in. Or investors - strong cash flow in a great area.
423 Sailmaster St
Lakeway, TX 78734
Offered at $177,900
Duplex
- Constructed in 1983 / Both are 3 Bedrooms and 2 Bathrooms / 2,093 sq ft
- Rental Comps suggest $900 - $950 for 3/2's in Lakeway
- Taxes are Approximately $4,688/yr
Excellent opportunity to own strong cash flow generator near the lake in Lakeway. Seller is involved in short sale and bank approval will be required. However, we've obtained bank "BPO", and sale should not be overly complicated.
Central Austin Special - Hyde Park on Sale
3803 Duval St, Austin, TX, 78751
Offered at $264,900
Click Here for Virtual Tour
Duplex
- Constructed in 1925 / A is a 1/1 and B is a 2/1 / 1723 sq ft
- A unit: $950/mo expires July 2009 / B unit: $1,000/mo expires July 2009
- Taxes are Approximately $6,877/yr
Prime Hyde Park location. Opportunity to renovate cute property on large lot, and increase rent significantly. Lot value until recently started at $300,000 - this one is only still on market because previous agent started pricing too high ($350k).
BoagoabunnY
Mar 22