A common question to real estate professionals is about utilizing real estate as part of an investment portfolio. This question can be relatively easy to answer or a little more complex. It will all depend on the investors goals. There are three potential ways to use real estate as an investment option and the questions that will need to be answered are
- Is your goal to earn appreciation?
- Are you looking for monthly income?
- Are you looking for a distressed property to flip?
If your goals align with one of the first two bullet points above we are more than able to assist and can use the chart below combined with a 10 year appreciation chart to help you determine where to invest. The chart below looks at potential mortgage payment with 25% down and compares it to lease values by zip code. The chart is organized by difference utilizing 25% down and has some great information.
The #1 area for purchasing a buy and hold property is in the 78754 zip code which is shown in this map. This area is prime for investment because of its closeness to both Downtown Austin and the University of Texas. Currently the difference between rent and potential mortgage payment in this area is approximately $299. Surprisingly the next best area for investment is in Jarrell, TX. The main reason is that sales prices are still relatively inexpensive