Investing in Austin

Ways to invest in real estate

• Buy & hold
  
  

  A popular investment strategy in Austin, buying and holding is generally stable with low risk. Investors will purchase a property, expecting it to increase in value later. Owning property will add variety to their portfolios and generate a steady income. It is a more reliable strategy than flipping properties or short-term investments while protecting the investor from price fluctuations in the market.

   

   

   

   

   

   
• Flip
  
  

  Buying a house to increase its value before selling (or flipping) is a creative endeavor that — when done correctly — can yield a significant profit. Not for the faint of heart, flipping houses depends on budget, neighborhood, and market conditions to maximize income potential. One caveat: Texas has regulations and fees on flipping properties, so it’s crucial to thoroughly evaluate the required permits and records.

   

   

   

   

   

   
• Rental
  
  

  In addition to rental cash flow, rental properties are expected to appreciate, leading to more value in the long run.

  Short-term rental properties include vacation homes, aka Airbnb and VRBO. These properties are in demand as Austin attracts many tourists year-round (thank you, SXSW & ACL!). 
  Mid-term properties are rented for over a month but under 12 months. They are often fully or partially furnished and are usually rented by new Austinites that are house-hunting, renovators needing a place to live during construction, and corporate housing. 
  Long-term rental properties are more traditional living arrangements of over a year. 

   

   

   
• Commercial
  
  

  A hot commodity in the city, commercial real estate generates passive income for investors from tenants who tend to sign long-term leases. This property is considered a non-correlated asset, meaning its value is not tied to an outside factor like the stock market or inflation. Commercial properties tend to provide higher rates per square foot than single-family houses.