Real Estate Investing in Austin, TX: The NFT of Property

Are you a financial sadomasochist? Does the abstract concept of monetary pain & suffering come to mind, and immediately cause you excitement? Are you looking to invest in a city that was described by NY Times culture editor, Timothy Dillon, as a Non-Fungible Token? If so, then by God have you come to the right place.

The capital of the Lone Star State has seen a lot of appreciation since the pandemic, not least because of the recent arrival of a certain podcaster, and his new comedy club. This of course led to some fantastic gains for those who were already property owners prior to the arrival of the American royal. However, if you're a young & aspiring real estate investor who's on the lookout for their first deal (stay away real estate boomers with 100 doors who think they know everything), Austin is not the place to spend your hard-earned money.

THAT SAID...

For those who insist, we've taken the necessary time and effort to compile a list of the least worst neighborhoods in the city.

Enjoy.

Least Worst Neighborhoods for Investment

1. Austins' Colony Situated on the eastern edge of the city limits, this neighborhood may initially seem way off your radar. Yet, it's the close proximity to Tesla's new Gigafactory that makes East Austin particularly attractive. It doesn't look like Elon's planning on going back to California any time soon, so the demand for nearby accommodation is likely to steadily increase overtime. The area is also a stone's throw away from the airport and also close to several major highways. Now, despite the area's remote nature, If you're looking for an on-market buy-and-hold investment, you won't find anything with positive cash-flow. The sensible strategies here seem two-fold: Flipping an on-market fixer-upper (there are a few of them getting consistent price-cuts), or going off-market. As of November 2023, there are currently 15 or so properties in the area with liens and low equity - a few of them with owners on multiple mortgages. You never know - there just may be an owner who needs a quick sale and is willing to take a competitive offer. Hey, it's not gold dust, but you asked and we answered.

2. Windsor Hills Nestled fairly north in Austin you'll find Windsor Hills, which is a similar distance from downtown as Austins' Colony. That said, Windsor Hills definitely wins on amenities as it has a few more restaurants and a nice grocery store nearby. What's more, its proximity to the Dell offices is a significant upside. This close link to a major employer could drive rental demand, especially from employees looking to cut down on their commute times. The area is seeing several price cuts too as of November 2023 - perhaps the Roe Jogan hype is wearing off..who knows - which make it a prime candidate for the lowball strategy.
3. Milwood A mere 5-minute drive from the bustling Apple Campus, Milwood stands as a prime spot for potential investors. This proximity to a major tech hub brings an undeniable appeal, given the potential of high demand from tech employees aiming to eliminate long commute times. Further enhancing this appeal, Milwood boasts closeness to a host of highly-rated restaurants, offering a wide array of culinary delights right at your doorstep. For daily necessities, a large supermarket is conveniently nearby, ensuring easy access to all your grocery needs. Are there any reasonably priced houses for investment here? Absolutely not - but what do you care, you're here to lose money remember?

Conclusion

None of these neighborhoods are good investments - as a matter of fact they suck (especially with a mortgage). If you're a cash-buyer, the fact you're choosing to use that cash on an investment property in Austin, TX is truly shocking to me.

Make no mistake - we're only writing this blog post because we want you to buy a subscription to our software, but if you're investing in Austin, you don't need our services. Just throw a dart at Zillow, and go from there.