What Austin submarkets have the best cap rates right now?
East Austin and Southeast Austin (78744, 78745) are producing the strongest cap rates for single-family rentals — typically 5–7% depending on purchase price and condition. North Austin near Pflugerville is also competitive for long-term holds.
Is Austin still a good market for cash flow?
Cash-on-cash returns have compressed compared to 2020–2022, but cash flow is achievable with the right buy price, 20–25% down, and a well-managed property. STR and midterm rental strategies can improve monthly returns significantly.
What's the minimum down payment for an investment property?
Conventional financing typically requires 15–25% down for investment properties. DSCR loans (which qualify based on rental income rather than personal income) are popular with investors and often require 20–25% down.
Can I do a 1031 exchange into Austin?
Absolutely — Austin is a top destination for 1031 exchange buyers. I regularly work with out-of-state investors rolling proceeds from California, Colorado, and the Pacific Northwest. Timing is critical; let's plan your acquisition before your 45-day ID window opens.
What are typical property management fees in Austin?
Full-service property management in Austin typically runs 8–12% of monthly rent plus a leasing fee of 50–100% of one month's rent. I can connect you with vetted PMs who specialize in investor portfolios.
Should I buy single-family or small multifamily?
Single-family is easier to finance and exit. Small multifamily (duplex–fourplex) offers stronger cash flow per dollar invested and is still eligible for conventional financing if you occupy one unit. It depends on your goals, timeline, and risk tolerance — I'll help you model both.
How do short-term rentals work in Austin?
Austin requires an STR license (Type 1 for owner-occupied, Type 2 for non-owner). Type 2 licenses in certain zones have become harder to obtain due to city restrictions. I'll verify STR viability for any property before you make an offer.
What costs should I factor into my underwriting?
Budget for property taxes (1.7–2.3% of value annually in Travis County), insurance, vacancy (5–8%), maintenance (5–10% of rents), CapEx reserves, and PM fees. I provide a full underwriting template to every investor client.
How quickly can I close on an investment property?
Cash offers can close in 7–14 days. Conventional or DSCR financing typically takes 21–30 days. In competitive situations, I'll structure your offer to compete on speed without sacrificing due diligence protections.