0.5m Condo in San Jose vs 0.5m multiplex in Austin

One of my agent friend brought up an interesting point:
If you want to buy investment property, why don’t you just buy a 0.5m condo in San Jose. Why do you want to invest out of state. Very similar cash flow.
She emphasized that the condo in San Jose will for sure double the price in 10 years, but don’t really see that possibility in Austin multiplex.


Is her point valid?


Valid only if her statement is true. However, according to Redfin’s data from 2004 to 2019,

San Jose condo went from $301k to $529k (listed).

Austin MF went from $160k to $500k.

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I care more about future performance. Which one will double to 1M first?

Well, If you don’t cash out at that 1M point, it might be pointless. It’s all about timing I guess.

No need so troublesome. Have a deal with sggg’s agent. In 10 years, you give her any $ above $1M in exchange for her topping up any shortfall if not $1M.

Everybody has their favorite investment techniques. Sensei Hanera strongly favors Austin and that’s worked well. Personally, I wouldn’t go with with sj condo for 500 and Def not Austin mf for 500. Best thing to do with 500 is Hi Desert / Morongo Basin land or maybe Victor Valley imo but I like high growth, slam dunk appreciation, set it and forget it EZ investing. Tenants, trash, toilets not for me. It’s hard to lose with California real estate, like falling off a log, easy to be a winner so the sj condo does make some sense.

So you buy and don’t even rent it out? You 100% rely on appreciation for profit?

What is there no taker for this 4-plex?


Rents for 3.8k according to listing.

Sure, that’s what I do - follow Starbucks and In-N-Out, buy land where they buy or lease. Similar to buy and board (board up). But it only works if it’s in a good area unless you live nearby or have a helper. If someone has a vacant lot in NYC or San Francisco or any busy area it could require constant scrutiny even with fencing due to campers, trash and weed removal but appreciation on land generally greatly outperforms any other real estate segment.
People ask to partner with me, builders and such and you can enter into joint ventures but I have avoided those up until now, risk averse. 100% return is on the low side, more like 3x minimum. Another great unique thing is to sell the land with owner financing and you get about 4-5% interest or sometimes higher. Also, taxes tend to be low.

No idea. Don’t buy in this zip code. Don’t buy MF. Next to slaughter lane. School grading so low.

“Slaughter” Lane sounds bad fengshui… :skull_and_crossbones: :skull_and_crossbones: :skull_and_crossbones: