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Hi all investors looking at Texas. We are heading back to San Antonio on 30 Jan to 25 Feb. If anyone interested in meeting with us in town for some assistance in getting into the market please let me know. We are heading back to buy some more properties and check on the progress of some of the renovations we have coming to an end. Happy to assist anyone who is motivated to get into the market and learn.
lucigoosey
I as many others investing in the US market find it very difficult to calculate any kind of capital gains. History has shown that there will be a gain but when and how much I do not know. I have seen some information on the net stating 10 to 50% over the next few years. That kind of information worries me because i do not know how they come up with the figure. The US is really a market which suits investors who are after CASH FLOW at this point in time. Cash flow helps with buying more property in these fantastic times.lucigoosey
To your question about cheaper properties in San Antonio. Yes the city does have some very good properties which are well priced. I managed to pick up 2 x 4 plex properties next to each other. One was 45,000 and the other was first listed at 70,000 but we missed out on it. I tracked down the new owner and ended up paying 110,000 this was done to add value by having an 8plex. Each unit is now rented at $652 per month
$155,000 total purchase price
$ 55,000 renovation
$62,592 gross rental
100% occupied
29% Gross
Tax $6000
Management $626 P/M
Gardens$1200 year
Approx Nett 19.8%
This is one example which may give you an indication of what is available. Single family properties can be purchased from $30,000. Any thing cheaper usually need to much work or are in bad areas.
Our typical renovations are between 20 and 30,000 but that depends on how good a quality you want to go. From our experience if you do a good quality renovation you will let the property a lot quicker and prevent future problems and vacancies.
Good luck with your researchHi
The difference between the cities talked about on the posts and the ones that are being heavily advertised is mainly the markets. Places such as Detroit and Phoenix have had a massive fall in values in comparison to Texas. You will find that Texas property values were not as over inflated prior to the GEC, thus they did not fall in price as much. Areas such as Detroit have a population that is reducing where Texas is gaining people from the northern states.
I drove across the country a number of times trying to get a feel for the different areas. it is obvious from that that Texas is doing better than some of the Northern states. San Antonio has a large military presence a large amount of both private and public hospitals plus a large new Toyota plant. Austin is home to Dell computers.
Very basic but some of the facts i took into consideration before i bought in TexasGood luck
Hi Clappy
You are starting your property investment education at the best possible time. With what is going on in the world at the moment and the fact that finance has become harder to get the amount of strategies that are appearing are fantastic. What I would suggest is to look at all types of deals weather you have the funds or not. Involve yourself with other investors and absorb as much information as you can.
I have been investing in Perth for the past few years and due to the down turn in the property market I have had to re educate myself and look at other options. I am now investing in Texas USA because the properties are more affordable and they provide a positive cash flow.
With the cash flow I am able to continue buying and learning. Any deal you start with, no matter how small, is a good deal as long as it provides income.
You can get into the market in the US for under $30,000 USD. With the purchase you will need to do some rehabbing to get a good tenant. The market is suppressed so it is relatively easy to get into. There is a lot to learn, but as far as I am concerned it is the best job in the world.<moderator: delete advertising>
Read as much as you can, talk to people who have common goals and interests and take no notice of any one who says it cant be done, or you are to young.
Start nowHi All
Some more information in regards to Section 8 tenants in San Antonio Texas. Prior to making a purchase it is essential to request a list of Non Section 8 Compliantareas. The City does publish a document which could save the possibility of buying in an area were you may not be able to utilise the section 8 system. Some areas such as The Glen and Camelot 1 and 2 appear to be good areas. I was very tempted to buy in those areas but as you cannot place section 8 in them they would be a risky investment. The areas do not attract locals who pay there own rent. Remember Do your research.good luck
Guys. I have been buying in San Antonio Texas for two years now and the market is fantastic. I will head back in Feb for another 3 weeks and intend coming back with some more good deals. I encourage you all to take a look over there as the market is not like the rest of the US. The properties are not to difficult to let as long as the rehab is done well and the place has good curb appeal and is in a good rental area.. Airconditioning is a must to get tenants quickly. You need to get to know the rules and regulations from the City as to rehabs. Inspections are required on all plumbing, electrical and Air conditioning. These inspections can be delayed at the moment due to a number of inspectors being fired for corruption. I have a property which took 3 weeks for the final plumbing inspection. Tenancy laws in San Antonio are owner orietated compered to Australia. It is a must to read up on the law so you know what to expect of your property managers. We have gone down the track of having our own managers working directly for us. This has enabled us to keep a tight rein on the costs etc. We have also bought on a contracting team to do all our work. The trick to investing in Texas is to build relationships. Be honest and accountable to all the people you work with.
We have got a number of properties in San Antonio and spend a lot of time going back and forth to keep everything moving in the direction we want.
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Good luck to all with your investing
DaleHi Morgan. I am not sure about tours but I have done a bunch of trips to Texas over the past two years. I think about 10 trips now between myself and my business partner. You are welcome to catch up with us when we head back in Feb. I have bought 9 properties in Texas now and we are heading back to secure some more. Our property investment strategies in Texas are now very solid and all is working well. No matter what you decide it is worth travelling over to take a look at the market and get a feel for the different procedures they have in place over there. It is worth getting to know all you can about the City you invest and the regulations with Section 8 tenants. The property market in the US is fantastic and I encourage Australian investors to get involved. This is a market we have all been talking about for years and now the opportunity has come
