Tag: Investment Property

A Look Back at Austin’s Construction Projects Throughout the 2010s

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Since 2010, there have been a ton of new projects and developments springing up throughout the city. With the start of a new decade almost upon us, we thought we’d take a look back at some of the buildings that weren’t around to add to our skyline just a few years ago.

The Austonian
From 2010 – 2018, this was Austin’s tallest building. The Austonian was the true start to showing how important and lucrative high rise residential buildings can be in Downtown Austin. The skyline wouldn’t be the same without the 683 feet condominium tower.

The Independent
In 2019, the Austonian was usurped in height by the Independent, standing at 690 feet, the building became the tallest in Austin and the tallest all-residential building in the United States west of the Mississippi River. The unique design is always brought up in architecture talks for its Jenga-like look.

Robert B. Rowling Hall
The University of Texas campus is beautiful and has a huge impact on the city year after year, but the new graduate business facility is an even bigger fixture. The 497,500 square-foot building connects to the AT&T Conference Center and Hotel.

Northshore
The 424-foot building has 38 stories, 439 apartments, and is a quintessential mixed-use development. The building comes with a private lounge, pool, concierge, and a variety of great amenities.

70 Rainey
The last ten years have brought particular change to the Rainey District. The tallest of the new towers to the historic Rainey Street is 70 Rainey, and it’s sure to be one of many luxury buildings to connect Rainey to the rest of Downtown.

The last decade has brought a variety of changes, and we know the next ten years can really evolve the city dynamic and skyline even more. If you ever have questions about where we see Austin going and what the changes can bring for your investment properties, don’t hesitate to reach out to TALK Property Management at (512) 721-1094.

5 Real Estate Investment Property Red Flags

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There are a lot of excellent investment properties out there, and while there are some factors that make a property great, there are also some red flags that may help you narrow down which ones you should avoid altogether.

  1. Is the floor plan functional?
    If a home is listed as a four-bedroom home, you want to make sure that all four bedrooms are adequately sized. If one bedroom is particularly small or awkwardly shaped, it may be hard for you to find tenants for that space. You’ll also want to consider the number of bathrooms. It’s unlikely that you’ll find tenants ok with sharing a four-bedroom home with only one bathroom.
  2. What neighborhood and school district does the home fall in?
    No matter how beautiful the home, if it’s in a bad neighborhood or zoned for a school district that doesn’t have a great reputation, you’re going to have a hard time finding tenants. Is the area in a high flood zone, close to loud businesses? These are all factors you’ll want to look into.
  3. Are there structural issues and damage to the property?
    Pay attention to if a property has uneven floors, cracks on exterior walls, etc., as this can be a sign that there are bigger problems with the structural integrity of the home, which can be costly to fix. You should also be looking for roof leaks and checking under countertops and sinks in the bathroom and kitchen for signs of water damage and mold, as this can be another sign that there are major repairs that need to be made.
  4. Have you been asked to waive your right to inspect the property?
    We can’t stress this enough. If a seller asks a potential buyer to waive their right to inspect and back out of the deal if they don’t like what they see, turn tail and run. This is a huge sign that something isn’t right with the property. It’s common for a seller to sell a property as is without making any repairs, but it’s not common to ask a buyer to lock into a deal without an inspection.
  5. Are you being met with resistance to see the inside of the property?
    If you’re having trouble nailing down a date and time to see a property or are even being kept from checking out the whole property, it’s a big sign that the seller is hiding something. The golden rule to live by: Never buy an investment property without seeing 100% of what you’re getting into and after receiving an inspection that gives you an idea of what the property will need maintenance-wise.

If you still have questions on investment properties, don’t hesitate to reach out! We’re more than happy to share some of the knowledge, tips, and tricks we’ve picked up over the years to make sure you make and maintain a great investment.

The Domain is Going to New Heights!

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It is said Domain Tower 2 will be 24 stories and have 330,000 square feet of office space. This second tower is a continuation of the plans to make The Domain Austin’s second “downtown” hub. As huge technology companies are seeing a need for larger space in close proximity to amenities they can offer to employees, construction companies are meeting those demands by expanding The Domain.

Overall, The Domain is about 300 acres of land split amongst a variety of offices, retail spaces, and residences. There are more projects coming soon, including a 20-story, 345,000 square-foot Domain Tower 3, and a proposed 22-story Domain Tower 4. The plan to continue development of The Domain includes a 15 phase plan, and Domain Tower 2 is just one step in the overall goal of bringing 3 million square feet of class A office space, 2,500 multifamily units, 50,000-square feet of restaurants, and a hotel to the area.

While no one has yet signed on to take over the office spaces in Domain Tower 2, there’s no doubt there will be a variety of companies interested due to its great location and competitive markets. The demand is strong and only continues to grow in this area. If you’re curious about how the area in North Austin has changed with the expansion of The Domain, give our team a call. We’re happy to give you a glimpse into how the area has changed and how it will continue to do so in the coming years.

How to Know if a Property is a Good Investment

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Deciding to jump into real estate investment is just the beginning of a variety of decisions you’ll have to make. You’ll be surrounded by questions and things to ponder and consider. So, what is it that makes a property worth buying in order to rent out to tenants? What should you be looking for in a great investment property?

  1. Quick turnaround time – By this, we mean that you should be looking for homes that you can buy and have a tenant living there in no time. It can be costly and unwise to invest in a property that will need a ton of renovations before you can rent it out. It’s recommended to look for properties that will generate enough rent in 10 months to cover all costs or follow the “2% rule.” This is the financial rule that states that your monthly rent should be at least 2% of the total purchase price of a property.
  2. Check out the number of days homes are staying on the market as well as what other rentals are offering – If a neighborhood is seeing a decrease in the number of days on the market for homes being sold, this shows that the housing market in that area is heating up and could be especially desirable. On the other hand, if you see rental properties offering discounts and deals, this could be a sign that landlords are having a hard time filling the spots they have open and that the neighborhood isn’t ideal for tenants.
  3. Look into what else is available in the neighborhood – Big businesses spend a lot of money to scout out desirable neighborhoods that will sustain their company. If a Starbucks, Whole Foods, or trendy business is moving in, it’s a great sign that the area is booming and will bring tenants looking for a place to call home. If you’re looking at places in a college town, you need to know that you’re more likely to have a high turnover of tenants – people looking to stay for 1 – 4 years while they finish a degree. If you’re targeting millennials in a city, target your home searches to walkable neighborhoods that are close to public transportation and restaurants/businesses.

If you ever have any questions about real estate and investment properties, don’t hesitate to reach out to our helpful team. We’re here to ensure that your properties and investments are well taken care of.

Loan-to-Value Ratio Explained

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If you’re considering buying a home, there will be a lot of delving into your finances in order to qualify for a mortgage. One of, if not the most, crucial factor to be approved for a mortgage will be your loan-to-value ratio. The loan-to-value ratio is pretty straightforward. It’s simply the amount of money you borrow from your lender, divided by the purchase price of the home in a percentage format.

The loan-to-value ratio is extremely important for lenders as it gives them a better insight into the risk they face loaning money to a prospective homebuyer. The higher your loan-to-value ratio, the higher the risk to the lender, which may play into the mortgage terms and interest rates the lender can offer you. While lenders also look at your credit score, they want to make sure that you have equity in your home and are willing to make a sound investment that you can afford.

Many lenders require that borrowers have a loan-to-value ratio of 80% or lower before they approve a loan, which means that they’re really looking for borrowers to put in 20% for the down payment.

If you’re worried that you could fall under the high loan-to-value client group, there are a few ways to lower your ratio and increase your chances of being approved and getting great terms for your home loan.

One way to lower your loan-to-value ratio is to save up more money in order to have a larger sum to put down for your home. If you can offer up 20% or more of the home’s value, you’ve already lowered the loan-to-value ratio and made yourself less of a risk to the lenders by proving you have a stake in your home. The other way to lower your loan-to-value ratio is to look at more affordable homes. Choose a home that you would need a smaller down payment for, and you’ve immediately taken care of reducing the loan-to-value ratio.

If you ever have questions about your loan-to-value ratio and choosing a property that fits your budget, give our team a call. We’re here to make real estate processes simple and easy to understand for everyone.

Choosing a Home Warranty for Your Rental Property

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Choosing a Home Warranty for Your Rental Property 

There are plenty of expenses when it comes to owning a rental property. New application fees, landscapers, and even the downtime costs associated with utilities when no one is residing at the property. There are many factors to consider when renting your property but the thing you may not have thought about can save you a lot of money and peace of mind. A home warranty.

Large ticket items, like your A/C unit, appliances, or plumbing issues, are not typically covered under your homeowner’s insurance unless in cases of natural disasters. When you have a rental property it is important to ensure maintenance items are covered. This is where a home warranty comes into play.

Saving you time and money, a home warranty company will take care of those maintenance nuisances that seem to happen when you’re least prepared for it. The service level plan you opt into will determine the amount of out-of-pocket expenses you can expect for a maintenance request. 

There are several home warranty companies to research and determine the best fit for you:

  • Choice Home Warranty
  • America’s First Choice
  • Select Home Warranty
  • Total Protect
  • HSA
  • Old Republic
  • Guaranteed Home Warranty
  • Landmark Home Warranty
  • Stanley Safe Club
  • Allied Home Warranty
  • American Home Shield
  • BFS

 While a home warranty can’t guarantee the best tenant, that’s our job, a home warranty can help alleviate the stress of maintenance repairs. When you’re ready to consider all the options available to you for your rental property and need help with professional management services, give us a call. 

Your Summer Home Maintenance Checklist

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Your to-do list always seems to have some kind of home maintenance project on it, especially when a new season begins. Between your pool days and backyard BBQs, make sure you work consistently on the upkeep of your home. Not sure where to start? Luckily, we’re here to help.

 

  1. Check the smoke and carbon monoxide detectors in your home. It’s recommended that you do this once a month, so be sure you’re always putting this at the top of your checklist.
  2. Prep your air conditioner. The sweltering heat means that your A/C and fans are going to be working hard to keep you cool. Be sure you keep units clean and switch out the filters once a month in order to make sure there’s no disastrous break down and that they’re operating at peak performance during the few months you need them.
  3. Keep your grill clean. It may have been months since the last time you fired up the outdoor cooker for burgers and steaks, so give it a deep cleaning. The burnt residue of last year’s forgotten hot dogs won’t improve the flavor of this year’s hot dogs.
  4. Give yourself a porch worth perching on this summer. Dirt and debris can accumulate on your porch, especially after a harsh winter. Sweeping and mopping your porch can do a lot to refresh the atmosphere and make it the perfect place to enjoy those summer evenings.
  5. Detail your deck. It’s important to hammer in any nails that are coming up and could cause someone to trip. Check for rotting and see if it might be time to reseal it.
  6. So mulch to do for your garden. Mulch keeps weeds down and can help your plants retain the moisture that the summer sun tries to take from them. You should also find time to get rid of the dead foliage and let your plants focus their energy on the healthy parts of the garden that are trying to bloom. Train your garden for the hot and dry days by setting up a new watering schedule. Water a few times a week with more water than you usually add rather than watering them lightly every day. It helps promote strong and deep roots.

 

We hope this summer checklist won’t interfere with any of your plans and will make your house the hub for all the season’s best get-togethers. If you or a loved one are looking for a new neighborhood that offers everything you need for a fun family summer, we’re here to help you find that dream home!

Six Tips on Investing in Real Estate

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Today we’re lifting the veil and revealing some of the key factors you need to know to begin investing in real estate. We’ve laid them out in six simple steps to get you on your way.

Step one: Learn everything you can about real estate investing.

Real estate has many nuances and can be a large beast to jump into head first, so it only makes sense to seek knowledge from those who’ve been in the industry and have hands-on experience you can use to your advantage. No matter how you learn best, there’s a method for you. From books and blogs to podcasts and forums, you’ll find a plethora of knowledge and experience that will benefit you in the long run. Start with the general topics and take a deeper dive into the investment areas that catch your eye.

Step two: Don’t wing it.

If you don’t make a plan and start investing based on an idea of grandeur in your head, you’re bound to make a lot of mistakes. Mapping out where you are today with your assets, expenses, and monthly income, as well as where you want to be and how you’ll get there will keep you focused and moving in the right direction. Once you have a plan set out, ask an investor to look it over and make sure it’s plausible. If there are some flaws in your plan, your investor will point them out and help you create a plan that may work better for your budget and lifestyle.

Step three: Finance before you purchase.

What we mean here is that you need to know how you’re going to finance your property purchases before you try to find the residence you would like to add to your investment portfolio. Banks and mortgage lenders will be able to show you all of your options, so you can narrow your scope and focus on properties that make sense for you.

Step four: Look for the right investment.

This is the step that can hold many people back. It makes everything real and is the step you need to take to actually make your investment plan a reality. Make a list of what you’re looking for and specify location, price, property type, and condition of the property and begin crossing off homes that don’t work for you. Don’t make exceptions to your list and stick with your gut.

Step five: Put in the paperwork.

Partner with a real estate agent who understands real estate investment, and don’t be afraid to tell them all of your wants and needs. Your agent will begin to pull properties that meet your criteria list and negotiate with the sellers when you find the right fit to get you the best deal. Once you’ve struck a deal, look for unforeseen costs and have an inspector take a close look at the property. The last step is to close and officially become an investor!

Step six: Effectively manage your properties.

Just like any other business, real estate investment will fail if it’s managed poorly. Learn what it takes to be a good landlord, or look into professional property management companies and find the right manager for you and your investments.

If you’re thinking about real estate investment and are ready to find the right property that meets everything on your criteria list, we’re here to help! Reach out to us today, and we’ll begin the search to put your plan in motion.

Austin-area Home Demand is Strong, but Median Price Stalls Slightly – What This Means for Real Estate Investors

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Strong first-quarter home sales in the greater Austin area continued into April, according to the most recent Central Texas Housing Report released by the Austin Board of REALTORS®. However, the Austin-Round Rock MSA’s first quarter home sales were tempered with a stalled median home price increase of just .2% during that period. This figure is significantly lower than in the same period in previous years.

“Between 2012 and 2015, we saw price increases as high as 9%,” said Kevin P. Scanlan, 2019 president of the Austin Board of REALTORS®. “These narrower margins are a strong indication that market prices are starting to stabilize.”

Home sales volume continues to rise in the greater Austin area, and it was up 14.9% to 3,035 sales. Surprisingly, new listings were down 1.8%, but active listings increased 1%, another opportunity for Austin-area real estate investors.

Pending home sales in the greater Austin area spiked to 14.3%, while months of inventory hovered at 2.4.

According to the Texas A&M Real Estate Center, a “balanced real estate market” is defined as six months worth of home inventory. With housing supply hovering at 2.4 months, the greater Austin area remains a “seller’s market,” meaning that it is generally more favorable to sellers/owners due to a reduced supply of homes.

However, with the median home price tapering, there appears to be some stabilization and a silver lining for investors who are considering investing in Austin-area residential real estate, especially while interest rates remain low.

Regardless of your situation, TALK Property Management is always here to help, even if you just have a question about the real estate investments in the Austin area. Or, if you’re considering selling your investment property or if you know someone who is, contact our TALK Property Management today. We are always here to help.

DIY Fouls: 4 of the Worst DIY Mistakes Homeowners Can Make on Investment Properties

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While it may seem like a good idea to save a buck and perform investment property repairs yourself, DIY repair projects don’t always pay off, and things can get ugly rather quickly. Stay away from these common DIY mistakes that homeowners make, and leave them to the licensed repair professionals.

#1 Drywall Repairs. An extra coat of paint is no biggie, but if your investment property’s walls are in need of drywall repairs from things like cracking around windows (generally speaking, if you can stick a coin in it, there’s a problem), settling around door frames, or holes in the wall, it’s tricky to get it right on your own. Enlist the help of a drywall professional who has the tools and experience to repair the issue correctly.

#2 HVAC Repairs. Your investment property’s heating and air conditioning systems are complex, and they’re often connected to gas and electrical lines. Making a small mistake can jeopardize the system and lead to costly repairs. Hire a licensed HVAC technician to correct any problems.

#3 Electrical Repairs. Installing a ceiling fan or a simple light fixture isn’t usually a big deal. However, when you start dealing with circuitry and breaker boxes in your investment property, the potential of seriously injuring yourself or starting a fire increases dramatically. Electricians are up-to-date on all the recent code requirements, and they have the advantage of working with electrical systems daily. It may seem like a good idea to go it alone, but don’t fall prey to this DIY mistake.

#4 Plumbing Repairs. Incorrectly repair a plumbing issue, and you’ll find yourself in a lot of hot water, no pun intended. While a leaky toilet in your investment property may appear easy to fix, the problem can escalate, or there may be more to the issue than meets the eye. Because water damage is serious and expensive to fix, start at the right place, right from the beginning: hire a licensed plumber.

While it may be exciting to put on your DIY cape when it comes to your investment property, resist the urge–at least on these four important items. Spending the extra money to have a licensed repair professional evaluate the issue prevents DIY mistakes from turning into costly DIY problems.

Have a real estate or investment property question? Reach out to me anytime.