Northwest Hills · Investment Property
Investment Property in Northwest Hills
Rentals judged on the numbers, the neighborhood and the condition of the house, not on the listing photos.
Investment Property in Northwest Hills: what's different here
A rental in Northwest Hills is a business decision that happens to come with a kitchen. With original homes on valuable lots, investing in Northwest Hills is usually about land and redevelopment rather than monthly rent.
Texas has no state income tax, but property taxes are high, so the tax bill and insurance often decide whether a rental works.
Talk about Northwest Hills
Why Northwest Hills buyers work with me
I grew up in Northwest Austin, have lived here since 1976 and have lived on the Mountain in the Spicewood Estates area since 2004. My wife, Heather, and I own short-term rentals ourselves, in Spokane and Punta de Mita, so I look at a property the way an owner does. Buying here means choosing among original homes, renovations and new rebuilds side by side, all in Austin ISD, with the Domain a short drive up MoPac.
How I handle it in Northwest Hills
- The numbers before the showing: rent against taxes, insurance, HOA dues and likely repairs.
- The rules: HOA leasing limits and short-term rental rules, checked before you commit.
- Condition: roofs, AC, water heaters and plumbing, judged by the home's era.
- 1031 timing: 45 days to identify and 180 days to close, planned with your exchange company and CPA. More on investing.
More about Northwest Hills
For the full picture of the neighborhood, see living in Northwest Hills. Questions about investment property here? Call me at (512) 698-3525.
Frequently Asked Questions
Can I rent out a home in Northwest Hills?
Often, but some HOAs limit leasing and short-term rentals have their own rules. We check before you make an offer.
What are the 1031 exchange deadlines?
Federal rules give you 45 days to identify a replacement property and 180 days to close.
Northwest Hills
What investment property looks like in Northwest Hills
Westover Hills, Northwest Hills and Cat Mountain along Mesa Drive: 1960s and 70s homes, steady rebuilding, and big views toward 360.
- The homes
- Locals use "Northwest Hills" for three neighborhoods: Westover Hills, Northwest Hills and Cat Mountain. The first build was the 1960s and 70s, and building has never stopped: older homes that lack space and function are often torn down and rebuilt, and newer homes go onto lots that take more engineering. Renovation is common too, but cast-iron plumbing in many of the original homes often makes starting new the easier path. The result is a wide variety of homes side by side. Value turns on three things: how usable the lot is, the view from the house, and how recent the construction is. Two recent sales of the same size, about 4,200 square feet, show the range: a 2001 home on more than an acre of usable land with a pool, a 180-degree view and the preserve behind it sold for $2.55M, while a home on Mesa Drive with a smaller lot, a downtown view, power lines across the back, a busier street and plumbing to replace sold for $1.45M.
- Schools people ask about
- Austin ISD only. Most of the area feeds Doss or Hill Elementary, then Murchison Middle School and Anderson High School. Toward 2222 the assignments change to Highland Park Elementary, Lamar Middle School and McCallum High School, so check the address.
- Getting around
- Mesa Drive is the main residential road through all three neighborhoods. It is fairly level until it nears 2222, where it drops sharply. The Domain is a short drive north on MoPac.
- Nearby
- The Domain, a short drive up MoPac. Beverly S. Sheffield Northwest Municipal Pool. Canyon and preserve land behind many of the western lots.
- The trade-off
- The main parts of the neighborhood run off Mesa. The farther a street is from Mesa, especially to the west toward 360, the more extreme the topography gets: bigger views and more privacy, but harder lots. Homes on Mesa itself sit on a busier street.
The method
How we do it in Northwest Hills
Investment Property: keep exploring
Ready to make your move with James Brinkman?