If you’re considering investing in Austin real estate, it’s essential to make informed investment decisions throughout the process. In this blog, we’ll walk through five fundamental principles to consider when investing in Austin-area real estate.
- Focus on current returns, not future appreciation. A successful investment must make money from day one. Increases in home value are simply a bonus.
- Know the area and neighborhood. Do your research. Get details on the specific community you’re considering. What’s the long-term outlook? What developments (commercial and residential) are coming to the area? What’s the potential for population and job growth? These are all critical questions to answer.
- Learn the local and federal laws. Regulations–both local and national govern investments. Understand your responsibilities as a property owner. Missing deadlines, not understanding requirements, or violations of ordinances can be a costly mistake.
- Build relationships with local maintenance professionals. Repairs are inevitable with rentals. Take the time to research and build relationships with trustworthy repair and maintenance professionals. If you ever need a recommendation, reach out to me anytime–I’m always happy to provide the names and contact information of those professionals I trust.
- Earmark funds for capital investments. Small repairs are often easily managed; however, more extensive systems, such as HVAC, plumbing, or roof, require a dedicated budget. Be sure that you have the funds set aside for capital expenditures.
Successful real estate investing begins with doing your research and making informed, calculated decisions. If you have any questions about investing in Austin real estate, property management, or rental properties in Austin, reach out to me anytime. I’m always happy to help.