I see most of the investors for Austin real estate wanting to buy foreclosure or short sale properties. We had one deal on a listing in Circle C that was owned by Fannie Mae and they initially accepted a low offer, but then they kicked it back and rejected it. I guess they weren’t ready to go that low on it. Still a lot of investors want to know where these Fannie Mae homes are around Austin. Here’s a direct search link to Fannie Mae….
The problem I see with the investor approach to buy a foreclosed property cheap and then fix it up and Flip it, is Austin isn’t really a good flip market. We are seeing appreciation but it’s very steady around 6-7% in most areas. Plus you never truly know how much it is going to cost to fix up the home. You’ve probably seen enough of those shows on HGTV like “Flip This House” to know how it easy to get in over your head.
That’s why I tell investors to look at big picture and buy and hold. Lease rates are increasing and if buy a home at a good price compared to the area you can lease it probably for enough to cover your mortgage and maybe have some cash flow. Then it’s just a matter of waiting those 3-5years and let it appreciate. Plus you’ll be building equity in your investment. I think your Return on Investment will be much greater and you’ll have less risk.
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