Property manager screens tenants very well.
Labor cost is cheaper than SV but relative to price of the house, is high
After accounting for all these costs, the number still work. Cap rate is higher than SV.
Property manager screens tenants very well.
SV cap rate is the lowest in the country. Anywhere in USA has higher cap rate than SV.
Since 2013, capital appreciation of Austin property is comparable to SV.
Another example, this was listed by " maybe" a discount broker " at 799k with no traction. Now listed with a seasoned well spoken agent and it’s going to sell over 850 + easily with tenants in place paying $3600
Austin depreciation is the issue…Very high maintenance costs vs profits…Cheap little houses produce low income and have high relative costs…Appliances cost the same on a million dollar home vs a $100k home…roofs, paint, carpet, etc…similar problem…Property tax in Texas is outrageous. .Buy new, keep 5 years max and get out…In 5 years an Austin home will have the maintenance costs of a 20 year old BA home at one tenth of the rent…Your $100k Austin house appreciation is $5000 per year…But in 10 years you will need new paint, roofing repairs and other maintenance issues that will eat up at least half the appreciation.
Your BA rental costs $1m, appreciates at $50k per year and in 10 years will cost the same $25k in maintaining it…but will have appreciated $500k vs $50k.
Makes more sense to own one $1m BA house than 10 Austin houses…Not to mention fire ants, termites, mold, tornados and all the other fun issues in Texas
Well, let’s see if the lucky Chinese pricing strategy trumps using lowball listing price…
Hmmm, interesting one. I guess they got approval to remove the garage and put in another unit. 3 units for 1m, not bad…
Interesting, unless description is off, it appears this building was sold off as separate condos. If that is correct, combined went for 2M for essentially a Sunset duplex with an inlaw. Not bad.
I think your judgement is clouded by past experience.
You’re still living in the past.
8808 Scotsman Dr 78759 sold for $460k on Apr 28, 2017.
According to zillow, dropped to $204k in Apr 2012. So price is up $256k over 5 years i.e. $51.2k per year. Rate of appreciation = 17.7% p.a.
78759 is popular because of easy commute to The Arboretum (together with downtown, known as twin engine of Austin), Gateway (many hi-tech companies, Google has a branch there), The Domain (built by the same developer as Santana Row, IBM has a big presence), The RCC park where hi-tech companies like Apple, Oracle and many others have big presence, and the Laurel Mountain elementary school.
Californians go to Texas for high caps…Those slick Texans take their money laughingly all the way to the bank…Meanwhile long term Texan liabilities sneak up and bite you on the ass…Just offering 35 years of knowledge of the Texas market…take it or not at your own peril…
Wow, The Machine was in as the buyer’s agent!!! God, save some for everyone else, Jason!!!
Interesting sale. A fixer with a 3rd floor addition that provides some ocean view. Sells for 1.2M. So after you completely remodel this, will you make any money (if flipping)???
Where does it show Jason Chan as the buying agent? I can’t see the info
Ok, this one will be interesting. It is a Tudor style home in the Inner Sunset but needs a lot of work. Already priced kind of high too.
Hmmm, fishy. Listed and sold in one week and I don’t recall this one debuting… Pricing seems pretty low, but again not sure how much work actually needed despite description saying updated kitchen, etc, with only one picture. Not a double dipping broker situation but an out of area broker representing buyer. This should have sold for a tad more.
Wow impressive… you don’t miss a beat. Every Sunset house on market is under your scrutiny:)
It’s right next to the reservoir. Scares people (potential flood situation)
I get notified of EVERY listing and sale…
Well, let’s be honest, the Sunset is Asian (Chinese) city. According to Chinese superstition and feng shui, being near water is actually good, right? Come on, I would worry more about global warming when the tides rise if one lives out on 48th Ave. Nevertheless, here is what I found on the subject that puts a positive spin on being near the reservoir:
10 Tips for Good Feng Shui
A Chinese design system originally used as a town planning tool, Feng Shui is not a one-size-fits-all system. It depends on factors such as birth dates and professions and differs between families, but here are some basic tips to increase your positive energy, chi.
- Don’t align your front and back door or be able to see from one side of your home to the other. Otherwise, wealth and prosperity that comes in will flow straight back out again.
- Avoid homes at the end of T-intersections. Chi travels in natural, meandering curves so long, straight roads accelerate the energy too quickly, turning it into negative energy sha.
- Opt for curved architecture in your home. Natural, curving shapes enhance the flow of chi and the positivity that comes with it.
- Avoid placing your staircase directly at the entrance. If you can walk straight down stairs and out the front door, so can your money.
- Pick a home with water views. Water is the only substance that can hold chi so it is a positive element to have near. If you can’t afford a waterfront abode, a pool could be a substitute.
- A hilly or mountainous backdrop is also ideal. Just as water holds chi, wind blows it away so protecting your home from strong winds is good feng shui.
- Position your bed so your toes point in any direction but towards the door. This is the coffin position and is symbolic of death being able to pull you out while you are sleeping.
- Avoid homes set below street level. This setup is said to create relationship tensions.
- The ideal block is rectangular and slopes slightly upwards. The incline is symbolic of the property’s future value growth.
- Don’t buy a home on a busy road. The fast traffic will disperses chi.