Best Austin Areas to Buy a Rental Property
Buying a rental property is no easy task; it necessitates knowledge of leasing, mortgage financing, tenant-landlord relations, and property management. Like any other lucrative investment, it has its fair share of advantages and challenges. One such challenge is finding an adequate city to invest in. Austin, Texas, promises to meet the requirements for such an investment property to yield the highest returns. After all, money and business have been steadily streaming into the local Austin economy, making it the 8th best place for Millennials. However, you may still be wondering what are the best Austin areas to buy a rental property. We can help you by recommending some of the most popular neighborhoods where your rental will have a good return on your investment.
Cedar Park, a suburb of Austin located 17 miles from the city center, is full of opportunities for everyone. Simply walking down its lovely streets, you will not be able to miss its unique charm. It also offers a great retreat from the higher rents in the city, making it a perfect location for investing in rental properties.
Around 75% of Cedar Park’s available housing comprises single-family houses, giving the neighborhood a quaint suburban feel. With their rental property in Cedar Park, real estate investors may anticipate an average monthly rental fee of $1,768. Furthermore, with only 21 days, it has a short average time on the market for rental homes. However, the median home price is $611,527, making it a significant investment with even larger possible earnings.
The amenities your tenants will be able to expect from Cedar Park are vast. Families are drawn to the area because of the excellent educational system there. Moreover, it is safer than 41% of other US cities. Cedar Park is also home to the Texas Stars, a professional hockey team, and the HEB Center, which holds various events. Despite Austin’s poor public transit infrastructure, Cedar Park is fortunate to have access to the Metro Rail, which connects Cedar Park to Downtown Austin.
Cedar Park is one of the best Austin areas to buy a rental property because of its family-oriented amenities.
Taylor, Texas, is a terrific area to work, live, and raise a family. The city, which has a population of over 17,000, is only 35 minutes from downtown Austin making it easily accessible and convenient. Massive manufacturing facilities owned by major corporations like Tesla, Apple, and, most recently, Samsung have contributed to this area’s growth potential and continued development. It’s safe to say this Austin area is ideal for tenants wanting to find employment that will provide them with everything they need to have an enjoyable life.
As an investor, you can purchase a rental property for a median price of $582,073, while the average rental fee you can expect is $1,042 each month. This being said, among all the houses currently on sale in Taylor, 63.5% have 3 bedrooms, perfect for an expanding family. Additionally, the median days on the market seem to be decreasing, with a current one sitting at 36 days.
What attracts tenants to this area of Austin is the perfect balance between the impeccable land it is located in and the up-to-date amenities it can provide. The community of Taylor is so entrenched in history and family pride that visitors can’t help but be enchanted by it and all of the lovely unique shops it is filled with. Furthermore, there are fairs dedicated to various seasons, frequent farmer’s markets, and other events to satisfy your tenants. Do not be mistaken; this town also places a high value on education, as evidenced by the opening of the brand-new $38 million Taylor High School.
If your tenants want some peace and quiet, Taylor is one of the best Austin areas for them.
When it comes to the best Austin areas to buy a rental property that’s a popular neighborhood for families, Walnut Creek should undoubtedly be at the top of your list. Although Walnut Creek was formally established in 1862, it is now a vibrant community with a mix of old and new structures, posh businesses, beautiful houses, and a nonstop calendar of events geared toward families. If this is your target audience, you will have no trouble finding tenants that will fill your rental property since Walnut Creek is one of the best neighborhoods for families.
It is an expensive but lucrative investment with a median price of $449,831 that has gone up 23.2% since 2021. If you choose to take the plunge, you can expect an average monthly rent (for a 1-bedroom apartment) of $2,539. Furthermore, the median number of days on the market is relatively low at 16 days.
Walnut Creek is home to more than 20 schools, and its pupils typically outperform the state average in all subject areas when tested statewide. Due to the diverse range of nearby activities, events, and attractions, Walnut Creek is a well-liked location for tenants. Moreover, more than 35 stores are located in Broadway Plaza, while Main Street is lined with independent shops, galleries, and boutiques. And if that isn’t enough, within this area, there are over 100 restaurants, bistros, and nightclubs for everyone to enjoy.
Your tenants will be able to enjoy all seasonal events in Walnut Creek.
With a population of more than 128,000, this once quiet neighborhood is now one of the fastest growing in America. So why not take advantage of Round Rock’s status as a critical economic development hub by investing in a rental property? Although the median price of $541,774 will scare many, the income you would be able to gain is worthwhile. The average monthly rent depends on the property but is currently around $1,623. For real estate investors looking for a market with a significant presence of single-family homes, there are plenty to choose from. After all, among all the houses available, 76.9% of them are 3 and 4-bedroom homes.
Round Rock is approximately 20 miles from Austin. This makes it conveniently positioned for those looking to advance their careers. Although this area is one of the best Austin areas to buy a rental property, your tenants may also prosper, especially those with ambitious startup dreams. However, others will also have no trouble finding work in the area. After all, major employers from the IT and healthcare industries, including Dell, Emerson, and Apple, are all based in this area.
Article courtesy of Norman Lawson.He is a dedicated Austin investment banker who regularly blogs for State to State Move and is driven to impart his real estate expertise to anyone who would listen.