We get lots and lots of questions about why we do or don’t do certain things. We appreciate that folks are taking an interest in our real estate acquisition strategy and our renovation plans. Why not share some answers, then?
Why aren’t you buying houses near downtown Austin?
There are a couple of reasons for this. While the properties do continue to appreciate, it’s our opinion that the prices are being driven up by investors who are not actually out to make money. Like what? First, many people who reside outside the US invest in real estate as a safe way to “park” their money, and aren’t concerned too much about the cost. Second, there are many “investors” who are willing to pay retail price for a house to renovate, betting on rising home prices to enable them to make a profit. We simply don’t want to compete with those people. The market will not go up forever, and it’s due to come back down (as we have been saying for years, now).
Why aren’t you investing in multi-family properties in Austin?
See the above. The bargain properties have all been snapped up, fixed up, and renovated to get higher rents. My own son lives in one of those. The investors did a very reasonable job getting the units looking better without spending too much money (the kitchen cabinets look to have been repainted about ten times). We prefer to look outside the big city and the large suburbs and find properties in more-fringe communities, where you can still get a good price and make a good profit after fixing up a multi-family property.
Where do you think the next “hot” area is?
We don’t know for sure, but would like to share one piece of information: an interstate highway will be built to connect Temple with east Texas somewhere. Guess what areas fall along that path? Yep, areas where we are looking to buy property, like Bell, Milam, and Robertson counties. Every time a big road comes through, a whole lot of rural property becomes commercial, or turns into housing developments, or does something that will make someone a lot of money. Hmm, we say.
Anything else going on?
Yes! We have permanent address numbers on The Hermit Haus, since my cheap ones fell off. We’d like people to be able to find us, though we are not the “information” phone number. We are also working on signage.
And the official closing dates on the Gillis and Nash (Aunty’s) houses are actually coming up soon. Paperwork managed!
Plus, the new business Lee and Kathleen are working on has a logo and a name. Look for more information about Hearts, Homes, and Hands very soon.