Tag: renters

Pros and Cons of Purchasing A Fixer-Upper Property

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Whether you’re just starting out in real estate investing or you’re looking to build your portfolio, investing in a fixer-upper could be something you’re considering. Like most things in investing, fixer-uppers can come with many benefits but also many risks.

Let’s dive into a few pros and cons of purchasing a fixer-upper property so you can make an informed decision on whether this is the best option for you as an investor.

Pro #1: Lower Purchase Price

Fixer-upper homes tend to have lower purchase prices because the sellers understand the home will need some work prior to moving in. Even though you will need/want to put additional money into the property for repairs, initially, you’ll have a lower purchase price and a lower down payment than you would have if you purchased a property that’s more move-in ready.

Pro #2: Ability To Customize

Sometimes fixer-uppers will need to be gutted entirely, giving you the option to customize the property and make it exactly what you want. This gives you the ability to really think about what features matter most to your renters and make sure they’re included in your property. Renters like to see updated kitchens and bathrooms, so adding new countertops, cabinetry, and even a fresh coat of paint will go a long way.

Con #1: Expensive Repairs

Fixer-upper homes often come with a lot of repairs, which can get costly. It can be easy to get carried away and go over budget when it comes to making repairs and making the property what you want it to be. 

Con #2: Unexpected Surprises 

Even if you have a home inspection completed, there will sometimes be unexpected issues along the way. These issues can lead to even more expensive repairs and a longer time period for repairs to be completed, which can affect your timeline. 

Purchasing a fixer-upper property is a great option for adding more to your portfolio. If you have any questions about fixer-upper properties, reach out to us! We would love to provide our expertise and help in any way we can! 

Investment Property Pricing Strategies For Constant Income and High Occupancy Rates

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The ultimate goal for investment properties is to have a constant stream of income and high occupancy rates, and to do that, you need to make sure your property is priced right. If your property is priced too high, potential renters will skip past it when searching online before they even look into it. 

Here are a few pricing strategies to utilize when pricing your investment property.

Perform a Comparative Market Analysis

While the name might sound scary, a Comparative Market Analysis (CMA) is simply comparing your investment property to similar homes in the area. Find homes with the same number of bedrooms and bathrooms with similar square footage and see what they’re priced at to come up with a competitive price for your property. 

In addition to bedrooms and bathrooms, look at your property’s upgrades, amenities, and location. These are all factors that can be considered when pricing your property. If your home has more to offer or a better location than the other homes, you can price it higher than other properties. At TALK Property Management, we provide this as a FREE service for you. 

Consider the Market

The real estate market can largely affect pricing and what potential renters are willing to pay. If demand is high and supply is low, prices usually increase. If demand is low and supply is high, landlords are likely to lower rent prices. It’s also worth noting that potential renters could be more or less likely to purchase a home than rent based on what the market is doing. So, having a clear understanding of the market is huge when it comes to pricing.

Keep Seasonality In Mind

Typically, rental demands are higher in the summer and early fall as opposed to spring and winter, so you could price your property higher if it’s listed during a peak time of year. Keeping seasonal trends in mind when you price your property and market it online are huge to ensure you’re getting the most money.

Staying competitive with other investment properties is huge when it comes to the overall success of your property. If you have any questions about pricing your investment property or you would like TALK Property Management to do the heavy lifting for you, reach out to us! We want your real estate investment to be a success!

What Investors Should Know About the Austin Real Estate Market

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Austin has become one of the most desirable real estate markets this year, thanks to its ongoing growth. Many companies are relocating and expanding to Austin, which is causing people to relocate as well. More residents mean more people who need housing. This is the perfect time to become an investor in the Austin real estate market! Before you take advantage of the market, here’s what you should know about the local real estate market. 

Renters Can Afford More 

Since many people are relocating for Austin’s incredible job market growth, that means there are people with higher education and higher incomes coming to Austin. These individuals need a place to live, which means you can increase your monthly rent. According to Apartmentdata.com, the rental price for July 2021 was $1,422/month. But don’t go above the market average, then your property will sit vacant for longer. If you need help pricing your property, reach out to us! 

Occupancy Rates Are High

Occupancy rates have always been stable in Austin, but now they’re increasing. As stated in the Apartmentdata.com July 2021 stats, over the past 12 months, the rental rate growth increased by 9.4%, and occupancy is at 91.4%. This hot seller’s market makes homes unavailable for some due to low inventory or high price tags. This means they’ll continue to rent and renew their lease. This creates a unique opportunity for you. 

From that same data, areas all around Austin are popular for renters, which gives you several locations and price ranges to choose from. The most growth came from a combination of downtown Austin, South Congress, and Barton Springs. The other hot submarkets are University of Texas/Mueller, “outlying metro”, Round Rock/Georgetown, and Cedar Park, Leander, and Four Points. 

The Job Market Is Strong

The pandemic has made Austin an attractive home base for many big companies like Tesla, Google, Amazon, Facebook, Oracle, and more. Data from the Austin Chamber of Commerce show that in just June alone, over 20 businesses have relocated to Austin or opened their new business in Austin. More jobs = more people, and more people = more housing. 

Why Invest in the Austin Real Estate Market?

Some other reasons to invest in the Austin real estate market are: 

  1. Quality Education
  2. High Demand for Skilled Labor 
  3. Austin Has Plenty of Amenities
  4. Austin is an Active Community

 

If this all sounds good to you and you’re ready to invest, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.