I am looking at buying an investment property and can hardly find anything that makes sense financially. Nothing anywhere near the 1% rule. Some stuff so expensive it won't even cash flow if leveraged at all. It's insane.
Who is buying these freaking bcs rentals?
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Last: 7 yr ago by JSKolache
aggiefan2002
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Everyone and their uncle, all over the globe. Same reason the stock market is terribly over priced. Yields are crazy low across all markets and the cash flush have nowhere to park their money. What better place than a rent house in College Station, TX.
So what a guy to do? Sit and wait? Work stuff off MLS? Look to other towns?
Look for fixer uppers. Find off market deals. Join the local investor club: http://www.meetup.com/Brazos-Real-Estate-Investors-Club-BRIC
It's quite competitive though. Lots of players in the local market...myself included.
It's quite competitive though. Lots of players in the local market...myself included.
Sit on cash and be patient.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
We built new just two years ago and already have 75k equity. Insane!
quote:Not counting student housing, I'd like to compare the number of new residents since 2009 to number of new builds in the same period. The market here does seem crazy but there was a large slow down in building while people continued to consistently flow in. I don't see a bubble. I see actual fundamental demand that the builders have come nowhere close to addressing. When you add in the recent land price increases, it will only get worse.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
quote:That's 2.77% appreciation per year. Hardly a bubble.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
quote:quote:That's 2.77% appreciation per year. Hardly a bubble.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
What he didn't tell you is most of that appreciation has come in the last 2-2.5 years. Before that, the market was fairly flat.
quote:I disagree. I bought our first rental here in Aggieland in December of 04. Paid $89,500.00 and it is currently on the tax rolls for 165k. And it has never been vacant for more than a week.quote:quote:That's 2.77% appreciation per year. Hardly a bubble.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
What he didn't tell you is most of that appreciation has come in the last 2-2.5 years. Before that, the market was fairly flat.
quote:Their are a bunch of old Ags who are sitting on piles of cash earning .01% interest in a pass book savings account. And paying taxes on that income. With talk of a negative interest rate just the appreciation of the property looks like a great investment. Times are changing folks. Please be educated when you vote in November. I heard a fellow say the other day he is investing in Guns, Gold, Bullets, Band aids and rental property in Aggieland. Sounds to me like a great hedged portfolio.
I am looking at buying an investment property and can hardly find anything that makes sense financially. Nothing anywhere near the 1% rule. Some stuff so expensive it won't even cash flow if leveraged at all. It's insane.
Not all investors need to make a profit. I'm about to get a rental I know won't make a profit that may or may not make a profit. I am going to rent it out for ~20 years, then completely renovate it after the students have trashed it and then retire there. If I come out short $100 a month, no biggie. Allows me to retire in the location I want no matter how high real estate prices go in the future.
Great thread. What so many have said is that this IS a bubble but it is not a send em to the poo-house when it breaks bubble. I know so many guys that have come up here, bought a place first for the chilluns..then morphed into rental...then will probably be a retirement or a retirement/football rental house. Not bought as a profit center or an investment.
Very good friend bought a new reno 4 blocks from Kyle. Initially was for a full blown rental now has become a second CS home for him with football and events rentals. SO afar he has just about covered his nut with just a handful of football rentals.
The face of BCS is undergoing a " hundred year" change right now as the first wave of boomer retirees are heading this way.
Very good friend bought a new reno 4 blocks from Kyle. Initially was for a full blown rental now has become a second CS home for him with football and events rentals. SO afar he has just about covered his nut with just a handful of football rentals.
The face of BCS is undergoing a " hundred year" change right now as the first wave of boomer retirees are heading this way.
quote:This is what I was going to say. My home value has increased ~30% in 3 years (not in BCS).quote:That's 2.77% appreciation per year. Hardly a bubble.
This town is on crazy pills. I paid $215k for my house 9 years ago. I could sell it in 24 hours for $270k...but where would I move? Bubble has got to pop in the next two years.
My neighbor just sold and he actually realized a 30% increase in same 3 year time span.
quote:
The face of BCS is undergoing a " hundred year" change right now as the first wave of boomer retirees are heading this way.
My experience is purely anecdotal, but this is exactly what I saw when I sold my house there in 2013. Almost every single inquiry I received was from a retiree moving to CS or a soon-to-be retiree who wanted to buy a place for their kid and planned to move in after the kid graduates. This was at the 2000 sq ft/$250k price point. Since then, inventory at that size/price point has dropped a lot, and that $250k house would probably sell for about $300k. That's why I commented that a lot of the appreciation has been over the last 2-2.5 years.
quote:not until you sell.....
We built new just two years ago and already have 75k equity. Insane!
quote:Do people in college not party like we used to? I can't even imagine a retiree living next door to some of the places we partied at. Even when people weren't completely drunk we were still way too loud late at night.
The face of BCS is undergoing a " hundred year" change right now as the first wave of boomer retirees are heading this way.
You are correct on the price. We purchased in 2014 just under $240k. We would list at $309k or so if we had done so when we were considering it. 
quote:
You are correct on the price. We purchased in 2014 just under $240k. We would list at $309k or so if we had done so when we were considering it.
Ugh...you're killing me
Actually, I'm happy for you that you could have gotten that price! I thought I saw you post somewhere that you were going to sell and move to a house down the street?
Just FYI for those reading - StS bought my neighbor's house just less than a year after I sold mine. They were very similar (mine had a slightly bigger floor plan and a couple of extra upgrades) and built by the same guy.
There is a good chance we will be moving a few doors down. We love the location of our home but want a bit bigger which is exactly what this house has.
Now, it something else comes up we will certainly explore it but the owners of that home are well aware of our intentions.
Now, it something else comes up we will certainly explore it but the owners of that home are well aware of our intentions.
quote:Dude, my neighbors are retirees, and they frieken drink every night, we can't keep up with them. Every couple of days they can't stay up real late because they have to make a 9am tee time.quote:Do people in college not party like we used to? I can't even imagine a retiree living next door to some of the places we partied at. Even when people weren't completely drunk we were still way too loud late at night.
The face of BCS is undergoing a " hundred year" change right now as the first wave of boomer retirees are heading this way.
You should see the North Dallas Area. It's completely out of control. Coworker sold his house in 2 hours for 30K over list price. The only issue is buying back into the market. That's the sucky part.
If you are still looking for a rental with better cash flow, I'd look into the San Antonio market. I used to be a real estate agent in College Station, and when I moved to San Antonio I was surprised (and happy) to find rental properties that still fit the 1% rule.
I have a condo that my student's live in now and have looked at buying 1 or 2 more for rentals, but with all the new apartments that are coming online and with all the perks they have, I am seeing a ton of houses with lease signs out front, kind of scary.
quote:Looks like it is finally catching up with us. Way more empty units this semester than any previous fall. "Free Month" advertisements all over the place. Starting to see more empty houses hit the MLS as a direct result of not getting leased. What happens when they don't sell and the owners are faced with a mortgage and empty house for the next 10 months? Lowering prices if the equity is there? Possible foreclosures on some of these new builds?
I have a condo that my student's live in now and have looked at buying 1 or 2 more for rentals, but with all the new apartments that are coming online and with all the perks they have, I am seeing a ton of houses with lease signs out front, kind of scary.
I'm normally a huge proponent of the free market but I really do wish the city would stop approving new apartment complexes for just a year or two to give demand time to catch up. The developers that are building them don't give a dam because anything that's new will do well, for a little while at least. After a couple years, they just sell and start over new. If the current speed of building is maintained, serious damage will be inevitable within a few years.
if the demand is lightening, you should stop seeing new builds. You don't need to city to step in.
The same thing is happening in Houston right now. There's a ton of new inventory coming online that was built during $100 oil. Most anything that wasn't already in progress has been put on hold.
The same thing is happening in Houston right now. There's a ton of new inventory coming online that was built during $100 oil. Most anything that wasn't already in progress has been put on hold.
quote:In theory I would like to agree with you but when you take a closer look that's just not the case. The new build apartments will always be in demand with the new stock of snowflakes that migrate to town every fall. The developers know this and will continue to build because they will always be able to sell their product. The older units and market as a whole can suffer from high vacancy rates, dropping rents, decline in tenant quality, etc while the new builds continue to thrive. If we don't watch out, the latest and greatest builds of 10-15 years ago could end up with serious crime like armed robberies and murders.....oh wait!
if the demand is lightening, you should stop seeing new builds. You don't need to city to step in.
so demand isn't dropping for new builds.
that should create a market for the cheaper older stuff. I don't think every student and resident in BCS can pay top dollar for the newest and greatest.
that should create a market for the cheaper older stuff. I don't think every student and resident in BCS can pay top dollar for the newest and greatest.
quote:You can thank limitless student loans. Why slum it at Casa del Sol when you can live at whatever the new place is? It's all just numbers anyway.
so demand isn't dropping for new builds.
that should create a market for the cheaper older stuff. I don't think every student and resident in BCS can pay top dollar for the newest and greatest.
2818 from Wellborn past Holleman and then north on Penberthy is crazy with new apartments going up.
wait for the market to go back down or look in other places/cities
quote:Man, I love this idea. Just need to talk my wife into it in a few year...
Not all investors need to make a profit. I'm about to get a rentalI know won't make a profitthat may or may not make a profit. I am going to rent it out for ~20 years, then completely renovate it after the students have trashed it and then retire there. If I come out short $100 a month, no biggie. Allows me to retire in the location I want no matter how high real estate prices go in the future.
Even the new places aren't filling up, and the popular Callaway that used to have a waitlist doesn't anymore, rent with go down everywhere, it's going to be crazy. Why can't they build more hotels and get the game day prices down to a reasonable cost. Next those apartment complexes are going to start doing game day rentals for 1/2 the price these hotels charge.