Where do the Investors Invest?

Do you ever wonder where the investors invest in the Austin area and what an investor looks for in a solid investment property? Well, let me tell you.

Investors generally look for one of two things in a property:  

(1) Cash flow--at 20-25% down payment

(2) Strong potential for future appreciation

Now, let's be clear, while all homes are considered "investments", an investment property is not a home where you are going to live. These are two entirely different things. While all real Estate can be considered "investments" in the future, the goals of buying to live and buying to invest are two different animals.

While investors would like to get both good cash flow and future appreciation on a property, these two things don't always go together. In some market conditions you get one or the other. So, understanding if you are looking for short-term cash flow or if you are looking for long-term appreciation on a property is very important. An investor without this basic understanding is probably not going to be an investor very long.

So, where do investors invest? It really depends on what you are looking for, what your risk tolerance looks like and and what your investment/exit strategy looks like. I have my favorite places where I go to find my investment properties, and communities that I like to highlight to my investors. These places may change from time to time, depending upon market shifts and my investor clients needs.

If you are looking to invest in Austin Real Estate--Let's Talk. 

You can reach me at 512.914.4665. (No solicitors please; this is a client phone line only).

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