Michael Mechler
Broker Associate | Douglas Elliman Real Estate
Making it a popular investment among real estate investors
new residents move to Austin each day
capital that VCs have invested in 2022
It's a great time to own investment properties in Austin
According to the last estimate by the U.S. Census Bureau, 116 net new residents are moving to the Austin metro every day. Several companies such as Google, Facebook, Amazon, Apple, Oracle, and Tesla have opened up shop in Austin — with the latter two having moved their actual headquarters from California. With the exponential growth, there’s no surprise that there’s a huge demand for housing.
Higher interest rates, more qualified tenants
With the recent interest rate hike, many would-be homebuyers have been kicked out of their price range and are now being forces to rent. What this means for you is that you have a larger pool of qualified tenants to choose from. The demand for rental housing has increased; thus, causing rents to continue going up.
Historically low interest rates, more competition
Thankfully, the real estate market in Austin is normalizing. Homes are no longer going for tens of thousands of dollars over list price in a weekend. In fact, several of my clients are picking up great deals right now. They don't have to bid upwards of 30%+ over list price to win a home like they would have the previous 2 years when interest rates were unprecedentedly low. Take advantage of lower prices now and refinance when interest rates dip.
We help our clients find on and off market properties that align with their goals and negotiate the most favorable pricing and terms for them.
After the successful acquisition of the property, we help our clients get the property ready for the rental market by coordinating repairs and improvements with contractors.
Once the home is ready for the market, it’s time to get the word out to the masses. We market the property for lease utilizing professional photography, video marketing, social media marketing, email marketing, word-of-mouth, marketing to tenants' agents, inputting the property into the MLS, and syndicating to hundreds of real estate websites including the most popular websites such as Zillow, Trulia, and Realtor.com.
As applications start coming in, we screen the tenants by running their credit and background checks, present our clients with the reports, and make recommendations on the most qualified applicant based on what we see in the reports.
Although we're not property managers, we partner with 88 Doors Association Management, a local property management company run by 2 attorneys in town. (It’s always good to have attorneys on your side when dealing with tenants.) They manage the property as well as any issues with the tenants. Our clients can be as hands-on or hands-off as they would like. Most choose just to collect checks.
Although we’re a big proponent of holding real estate (after all, it is the best way to build wealth), sometimes our clients just need to sell. If that time comes, we help with the marketing of the property and negotiate the most favorable pricing and terms for them.
Broker Associate | Douglas Elliman Real Estate