Buying investment property in Northwest Austin
Rentals judged on the numbers, the neighborhood and the condition of the house, not on the listing photos.
Numbers first, photos second
An investment property is a business decision that happens to come with a kitchen. The listing photos tell you very little about whether it works. Rent, property taxes, insurance, HOA rules and the cost of the repairs coming in the next few years tell you almost everything.
Texas has no state income tax, but property taxes here are high, and in Austin they're often the biggest expense after the mortgage. A rental that looks strong on rent alone can look very different once the tax bill and insurance are in the math.
Talk through an investment purchase
How I help investors
My wife, Heather, and I own short-term rentals ourselves, in Spokane, Washington and in Punta de Mita, Mexico. So I look at a property the way an owner does: what it will really cost to hold, what the rules allow, and what it will take to keep it rented.
- Run the numbers before the showing. Expected rent against taxes, insurance, HOA dues and likely repairs, so we only tour homes that can work.
- Check the rules. Some HOAs limit leasing, and short-term rentals have their own rules. We confirm what the property allows before you commit.
- Look hard at condition. In the 1970s to 1990s neighborhoods, roofs, AC systems, water heaters and older plumbing can decide whether a rental pays. I'll point them out.
- Plan around a 1031 exchange. If you're exchanging, federal rules give you 45 days to identify a replacement and 180 days to close. We plan the search around those dates with your exchange company and CPA.
The full buying plan is on how I help you buy a home.
What to weigh, area by area
- Near the Domain, condos and older homes put a rental close to the densest cluster of jobs in Northwest Austin. Condo HOA rules and building condition vary a lot from one development to the next, and school districts can change from house to house.
- Anderson Mill has its own taxing district that runs the neighborhood's pools, parks and trails. That's an amenity tenants notice, and a line on the tax bill an investor needs to count.
- Avery Ranch was built mostly in the 2000s and 2010s, so it skips many of the age-related repairs of older areas. Many similar homes come on the market at the same time, which means more competition when you rent or resell.
- Oak Forest and Barrington Oaks date from the 1970s and early 1980s. Barrington Oaks was largely built as starter homes, so many floor plans repeat. Look carefully at roofs, systems and plumbing.
What you get
A short list of properties that make sense on paper, a clear read on condition, and an offer written for an investor's priorities. I've worked with investors in the past year, and I'll tell you when a property doesn't pencil, even if it's a nice house.
Rentals across the neighborhoods I serve
Frequently Asked Questions
What are the 1031 exchange deadlines?
Under federal rules you have 45 days after selling to identify a replacement property and 180 days to close on it. Work with an exchange company and your CPA from the start.
Can I rent out a home in any neighborhood?
Not always. Some HOAs restrict leasing, and short-term rentals have their own rules. We check before you make an offer.
Investment Property by neighborhood
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Ready to make your move with James Brinkman?