The Austin real estate market is the top Texas real estate market currently. Not only does the Austin real estate investment business mark new records, but it also keeps on growing and developing further. That is why so many real estate investors wish to finance Austin investment properties in order to start making money in real estate. In this blog, we will reveal why the Austin real estate market is such a great place for real estate investing. Additionally, we will present you with information regarding the two types of rental properties- long term rentals and short term rentals– in the local housing market. Most importantly, we will see what the top three Austin neighborhoods are for real estate investing, regarding each rental strategy. Ready…Steady…Let’s explore the Austin real estate market!
#1 The Austin Real Estate Market
The rate of appreciation of Austin real estate is increasing. Of course, in order to truly understand why the Austin real estate appreciation rate marks such an increase, we need to explore two parameters. The first one is regarding the features of this specific Texas real estate market. The second one is the numerical data representing the current market situation.
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The Austin Real Estate Market- Features
According to Culture Map Austin, the local real estate market keeps on shattering records for performance. This is due to the fact that the economic situation is stable and so is the real estate market. Moreover, the economy keeps on growing even further. The latter is also valid for the population, for which the numbers are rising as well. As you can imagine, all these factors indicate that the market is a perfect opportunity for house investors to invest in. Additionally, the prices of properties are getting higher. So, invest as soon as possible in order to catch the best deal. Curious to learn more about the Austin real estate market? Make sure to read “Austin Real Estate Market 2018: Is Now a Good Time to Invest?”
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The Austin Real Estate Market- Real Estate Market Analysis
It is a necessity to also observe the real estate market analysis results before buying an investment property. Here are the numbers all Austin real estate investors should be familiar with. This data represents the real estate metrics for the whole Austin real estate market, including all of the different neighborhoods and areas in the city.
Median Property Price: $525,481
Median Airbnb Rental Income: $2,058
Median Traditional Rental Income: $1,839
Average Airbnb CoC Return: 0.96%
Average Traditional CoC Return: 0.57%
Average Airbnb Cap Rate: 0.96%
Average Traditional Cap Rate: 0.57%
#2 Austin Investment Properties
Real estate investors should be informed not only about the situation of the Austin real estate market but also about the investment property types and their potential for success. This is needed in order to properly assess the market and select the best investment properties to add to your portfolio.
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Traditional Rentals
Austin is the capital of Texas and it is the fastest growing city in the United States at the moment. The city has a greatly developing economy and is considered to be a highly technological center offering various job positions. Moreover, the city is home to a university hosting many domestic and international students. All these factors result in the need for long term accommodation in the Austin real estate market. Thus, buying an investment property and listing it as a traditional Austin real estate investment has a real potential for success. Interested to learn more about traditional rentals? Make sure to read “How to Succeed with Traditional Rental Properties.”
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Airbnb Rentals
Airbnb Austin is another great investment strategy. The demand for short term rentals in the city is constantly growing due to several factors. First of all, the city hosts various cultural events yearly. Austin offers multiple music venues and leisure destinations. Besides, there are numerous business meeting and conferences held in Austin. The latter also increases the need of Airbnb rentals.
However, you need to keep in mind that Airbnb Austin functions by a specific set of rules and regulations. Such legislation regulates the taxes you should pay, the permissions and licenses you should obtain and so on and so forth. In order to operate efficiently on the market, you should review and be consistent with all local regulations which apply to you. Interested to learn how to find Airbnb Rentals? Make sure to read “Airbnb Rentals: Finding Income Properties Using a Heatmap.”
#3 Best Places to Invest in Real Estate in the Austin Real Estate Market
Here are the best places to invest in real estate in the Austin real estate market. Nevertheless, to present you with a clear picture, we have divided the top Austin neighborhoods into two categories: those best suited for long term rentals and those for short term rentals.
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Traditional Rentals
South River City, Austin- Texas
Median Property Price: $494,013
Traditional Rental Income: $3,334
Traditional Cash on Cash Return: 3.42%
Traditional Cap Rate: 3.42%
Riverside, Austin- Texas
Median Property Price: $256,133
Traditional Rental Income: $1,149
Traditional Cash on Cash Return: 1%
Traditional Cap Rate: 1%
Chestnut, Austin- Texas
Median Property Price: $407,975
Traditional Rental Income: $1,879
Traditional Cash on Cash Return: 0.7%
Traditional Cap Rate: 0.7%
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Airbnb Rentals
Riverside, Austin- Texas
Median Property Price: $256,133
Airbnb Rental Income: $1,914
Airbnb Cash on Cash Return: 3.94%
Airbnb Cap Rate: 3.94%
Airbnb Occupancy Rate: 53.2%
MLK, Austin- Texas
Median Property Price: $292,800
Airbnb Rental Income: $2,570
Airbnb Cash on Cash Return: 3.35%
Airbnb Cap Rate: 3.35%
Airbnb Occupancy Rate: 49.9%
West University, Austin- Texas
Median Property Price: $269,995
Airbnb Rental Income: $2,558
Airbnb Cash on Cash Return: 3.31%
Airbnb Cap Rate: 3.31%
Airbnb Occupancy Rate: 49.5%
If you plan on becoming one of the successful Austin real estate investors, you might be interested in knowing that all the data above has been acquired using Mashvisor’s investment property calculator. This tool will not only help you in finding and buying the best real estate investments. It will also help you in making faster, smarter and easier investment decisions. So, if you want to start making money in real estate, be sure to check out Mashvisor’s investment property calculator.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
