It seems like just about everyone wants to move to Austin these days. Jobs are lucrative and plentiful, schools are good, the culture is intriguing, and the weather is excellent. With so many newcomers interested in the area, it is no wonder there is a high demand for multi-family housing. And, along with that demand comes a rising interest in investing in multi-family properties for sale.
Austin multi-family properties for sale come in a variety of forms such as Duplexes and Fourplexes, Low-rise or garden apartments, Mid-rise apartments, Highrise Towers, Condominium buildings, Townhome Communities and Large Apartment Complexes.
Purchasing an income producing property can result in monthly cash flow, tax advantages, and appreciation. Investors who are interested in finding real estate that has a high rental return and the potential to appreciate in value. One strategy is to seek out distressed properties or owners with a plan to turn the property around with needed repairs or additional capital. In Austin’s vibrant economy and real estate market, there are few properties of this type that come to market. More likely, investors who are ready to move up to a larger property list their properties to access the capital needed for their next acquisition.
Evaluating Multi-Family Properties
Just as in a residential purchase, buyers should consider condition and location but perhaps not in the same way. The condition of the property should include not only how sound it is today, but the cost of maintaining the building, infrastructure, landscaping and amenities over an extended period. Location near a college or university, downtown entertainment district, on a bus line or near a metro station may surpass proximity to an elementary school, park or greenbelt. Amenities are critical factors in attracting tenants, but secure or covered parking and a dog park may mean more to a renter than a volleyball court or sports field. Multi-family housing near public facilities has the advantage of providing perks for residents without the need to pay for them.
Whether purchasing a single multi-family property or an entire complex, buyers get to know a cast of characters during their transaction. In addition to a Realty Austin agent, a buyer interacts with a title company, banker or finance company, insurance agent, certified public account, appraiser, surveyor, contractor(s), and a property manager. They will need to consider the math that makes this purchase feasible carefully. Working with these professionals, a buyer bases decisions on the number of units, potential or current rent and rental history, zoning and use laws, cash-flow history, and other expenses. They also consider factors such as projected growth in the area, large employers moving into town, school assignments and any planned annexation by the city.