My Real Estate Investing Strategies - entry 2

The tenants moved out and next we need to get a commitment from someone who wants to move in and take care of some maintenance.

The longer tenants stay in a property, the more profitable it is because when a property is vacated, you must at minimum have the locks changed and the carpets cleaned. Usually there is maintenance, lost income, advertising and utilities to pay.

These tenants were in the property 4 years which was great. Yesterday my husband and I went in to the vacant house to make a list of what we needed to do.

Since the carpet was over 10 years old, we intended to replace that and we like to make improvements as we go so we were planing to put tile in the entry, kitchen and both baths. In addition, the master bath tub was a cheap fiberglass with a repaired crack and we wanted to replace it with a tiled walk-in shower. There is a tub in the guest bath.

The lease specifically states that MOVE OUT condition requires the property be left clean and in the same condition in which it was at move-in with the exception of normal wear and tear. Normal wear and tear is defined as without negligence, carelessness or abuse.

We shouldn't have been but we were surprised to see how dirty the house was. Dusty grim covered the ceilings, walls, window sills, blinds and baseboards. I'd say 4 years of dirt. We have our work cut out for us.

Read future entries for how we handle make-ready, improvements and repairs as well as replacing the tenants.

Austin, Texas. Robin Scott, BROKER. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.

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My Real Estate Investing Strategy - entry 1

There are different strategies for investing in real estate. You can "flip" houses. That's a buy, fix-up and sell. You can buy and hold for income from the lease. Or you can buy and hold for the appreciation which is my strategy.

There are a lot of books about investing in real estate from people that claim to have become extremely wealthy but many of their tactics aren't legal in my state, not available in my region or seem questionably unethical to me and in some cases unbelievable. If you are just a regular person like me and want to use real estate as an investment for your future, you may be interested in my perspective. I don't believe in the "big score." In the story of the turtle and the hare, I'm the turtle.

I own a few single-family homes which I bought for the purpose of holding. Preferably they will cash flow from the beginning but my main interest is that the rent is enough to cover the mortgage with a little left over to cover maintenance and costs incurred as occupancy changes. My theory is that the tenant pays the mortgage, the longer you hold a property the more it appreciates and if you aren't taking income then your tax liability is reduced while your property accrues in value and doesn't really cost you anything other than the buy-in costs.

So the proper way to evaluate how much your investment has grown is not how much more it is worth from the purchase price, but how much it has appreciated from the purchase costs. The downpayment doesn't factor in because that money is in the value of the home as if it were in a savings account. An example would be: if the home was purchased for $100,000 and the closing costs without the downpayment were $5,000 and now the house is worth $125,000 then the $5,000 has grown to $25,000.

Some of the properties I've bought didn't cash flow in the beginning because I purchased with as little down as possible preferring to hold on to my cash. Eventually, they all cash flow and make up for the initial loss.

As I look for properties, I only buy something that I would live in myself - just in case. That doesn't mean that it must be a large or upgraded home. Just something in a safe neighborhood in reasonably good condition with a good floorplan.

In addition, I believe that it's important to keep the property up; making repairs as soon as needed to protect the investment. And as money allows, I update and upgrade because I believe that the nicer the property is, the more I can get in rent and as the rental price increases the better tenant I can get.

Being a landlord isn't for everyone. Sometimes it's stressful. Tenants can cause expensive damage to property and the can burn you on rent but for the most part, I've had good luck.

The first home I bought in 1998, before I became an Austin REALTOR. I purchased it because it was in move-in condition in a safe neighborhood and was the cheapest thing I could find in close proximity to where I lived for easy access.

That house is a 2/2/1 garden home and is now worth twice what I paid for it. Luckily, it cash-flowed from the beginning. It is now available for lease and I'm going to chronicle the processes of make-ready and leasing in following blogs.


RelocateAmerica.com ranked Austin Ranked Among Best Cities to Relocate
“Austin was ranked the third best city to move to in the United States, according to a RelocateAmerica.com report. The relocating resources website listed Austin just behind Huntsville, Ala. and Washington D.C. for overall best place to move.” - Austin American-Statesman

If you are interested in finding out more about Austin, living in Austin, real estate or buying or selling a home in Austin, I want to be your REALTOR. And I appreciate your referrals as well. Call or email to find out how I can help you. 512.589.7988 or robin @robinscottrealtor.com
Austin, Texas. Robin Scott, BROKER. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.

Search for homes through Austin MLS
Find your home's value
Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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What is Oak Wilt?

In the photos is a house that lost all it's trees to oak wilt. On the right, You can see the stumps of trees already cut down. Oak Wilt is a deadly disease that is rapidly infecting trees in Central Texas. In the past twenty years, Austin has lost more than 10,000 oaks to this disease. Austin's Watershed Protection and Development Review Department (WPDR) has partnered with state and federal agencies, as well as neighborhood associations, to locate, treat, and prevent Oak Wilt. But home owners should also be working to protect their lovely oaks from infection.

What is Oak Wilt and which trees are affected? Oak Wilt disease is caused by the fungus Ceratocystis fagacearum, which infects the tree's vascular system. The vascular system becomes blocked by the fungus so that water cannot be adequately transported through the tree. Leaves wilt and fall prematurely, and in many cases the oak does not survive. The disease is spread by beetles that feed on the wounds of infected trees. The fungus can also travel between trees with interconnected roots. Oak Wilt spreads as wide as 75 feet per year in all directions. 

All oaks are vulnerable to oak wilt, but infection strikes some species more often than others. Red Oaks, particularly Spanish Oak, Texas Red Oak, Shumard Oak, and Blackjack Oak, are extremely susceptible and are often 'patient zero' in the spread of the fungus among a group of oak trees. In some cases, the leaves of infected Red Oaks turn red and yellow in early summer and fall from their branches prematurely, just before the tree dies. In other cases, the leaves will turn pale green, then brown, but still hang onto their branches.

Live Oaks are moderately sensitive to oak wilt infection, however they create an ideal environment for the fungus to spread from tree to tree because they tend to grow from root sprouts and form extensive interconnected root systems. Once infected, Live Oaks die quickly, one area of the tree at a time. The area around the leaf veins are often brightly colored.

White Oaks, including Post Oak, Bur Oak, Mexican White Oak, White Shin Oak, Durand Oak, Lacey Oak, and Chinkapin Oak, have a natural resistance to the fungus and rarely die from oak wilt.

How to prevent and manage Oak Wilt infections: To successfully control the spread of Oak Wilt, early identification and action are crucial. Keep an eye out for discoloration of leaves, or an unseasonable shedding of leaves. Another indicator of the disease in Red Oaks is fungal mats. These are spore-producing structures that typically appear in late summer or fall. Fungal mats appear as narrow cracks in the bark which lead to hollow areas in the wood. These areas often have a distinctive odor of fermenting fruit.

These are some actions one can take to control and prevent the spread of Oak Wilt:

• Prune oak trees only in the coldest part of the winter and hottest part of the summer.

• Diseased Red Oaks should be cut down and disposed of immediately, preferably by burning the wood.

• All pruning equipment should be sterilized after use, and all wounds, pruned areas, and fresh stumps should be treated with wound paint or latex paint to prevent insects from spreading the disease.

• If you use oak firewood, only use old, dried wood.

• When possible, install a 4 foot deep trench at least 100 feet from infected and susceptible trees to sever root connections.

• Consult a licensed arborist for preventative treatment with injections of the fungicide Propiconazole (ALAMO^®).

• When planting new trees, choose a species that is resistant to Oak Wilt and are well adapted to Central Texas.

• Contact Chris Dolan, City of Austin Oak Wilt Suppression Program, at 974-1881 for more information.

If you require professional help to suppress an Oak Wilt outbreak, Texasoakwilt.org provides many resources for Central Texas at http://www.texasoakwilt.org/Assistance/assistance.html.

Sources:

City of Austin, http://www.ci.austin.tx.us/oakwilt/

Texas Oak Wilt Information Partnership, http://www.texasoakwilt.org/

RelocateAmerica.com ranked Austin Ranked Among Best Cities to Relocate
“Austin was ranked the third best city to move to in the United States, according to a RelocateAmerica.com report. The relocating resources website listed Austin just behind Huntsville, Ala. and Washington D.C. for overall best place to move.” - Austin American-Statesman

If you are interested in finding out more about Austin, living in Austin, real estate or buying or selling a home in Austin, I want to be your REALTOR. And I appreciate your referrals as well. Call or email to find out how I can help you. 512.589.7988 or robin @robinscottrealtor.com

Austin, Texas Homes for Sale. Robin Scott, BROKER Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.

Central Austin Sights

The central Austin has access to many fun and interesting things to do and below are some of them.
Central Park is a 10 acre park is located at the NW corner of Guadalupe and 38th St. and southeast of the shopping center that contains Central Market. The park includes a hike and bike trail, picnic areas, and a series of three beautifully landscaped ponds.

Mayfield Park at 3505 W. 35th St. is park and preserve located on the Barrow Brook Cove of Lake Austin. The grounds include a series of five ponds and a turn of the century house where peacocks and hens wander freely throughout the yard. Beyond the fenced grounds is a wooded nature preserve with a variety of trails.

Also on 35th Street, is Laguna Gloria , a part of the Austin Art Museum. Several trails extend across the grounds, and the museum houses various collections and exhibits.


The Elisabet Ney Museum, at 304 E. 44th St., is housed in the former studio of the 19th century German-Texas sculptor, Elisabet Ney (1833-1907). On display are Ney's sculptures of 19th-century European and Texas notables and memorabilia from the artist's life.

Mt. Bonnell, at 3800 Mt. Bonnell Rd. is the summit of Austin's highest point where hikers enjoy breathtaking views of downtown Austin and Lake Austin. You can access the summit by the staircase of over 100 steps, or by a sloping trail from the north.

RelocateAmerica.com ranked Austin Ranked Among Best Cities to Relocate
“Austin was ranked the third best city to move to in the United States, according to a RelocateAmerica.com report. The relocating resources website listed Austin just behind Huntsville, Ala. and Washington D.C. for overall best place to move.”Austin American-Statesman

If you are interested in finding out more about Austin, living in Austin, real estate or buying or selling a home, I want to be your REALTOR. And I appreciate your referrals as well. Call or email to find out how I can help you. 512.589.7988 or robin @robinscottrealtor.com

Austin, Texas. Robin Scott, BROKER. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.

Search for homes through Austin MLS
Find your home's value
Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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Austin Ranked #1 by Forbes Magazine Again

Forbes Magazine has ranked Austin Number 1 in several different categories over the years. After all, this is a great place to live. Most recently Forbes has ranked Austin Number 1 in "the place where you can get the most bang for your bucks." The analysis was based on job growth and cost of living. Plus this is still a great place to buy and home.

And, I want to be your REALTOR®! If there is any information you would like regarding relocating to the Austin area, let me know. You can contact me at robin@robinscottrealtor.com, 512.589.7988 or just comment on this blog entry.


Search for homes through Austin MLS
Find your home's value
Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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Hello Michigan

Last week I worked with a really nice couple who was relocating from Michigan. They had retired and chosen Austin, Texas as their new home. That is so exciting! They are looking forward to our mild winters but Austin has so much more to offer.

Weather -If you are tired of the snow this is the place. It rarely snows. Maybe one every 10 years.

Music - We call ourselves "the Live Music Capital of the World." In addition to all the live music venues across the city we are the home of Austin City Limits and SXSW which are internationally famous, annual music events.

Sports - Texas Longhorns, UT football is really BIG and we also have Round Rock Express, AAA minor league baseball team, Ice Bats Hockey Team and we are the home of Lance Armstrong so biking is really popular too.

Outdoors - No matter how hot it is there is always something going on in our community and often outdoors and on your own you could enjoy swimming, boating, hiking, biking, camping, fishing and more.

The Arts - Austin is one of only 14 cities in the US that has an Opera, Ballet and Symphony. We also have several art museums including The Blanton Museum of Art which is the 3rd largest art museum in Texas and a dedicated classical music station KFMA.

Celebrates - Yes, we have a few. Sandra Bullock bought a home here and has a restaurant downtown. Matthew McConaughey is from Austin and although his MySpace page says he's a Malibu resident he does own a home here. Dennis Quaid married the daughter of a local real estate developer and holds an annual charity golf tournament. Lance Armstong of course. Quintin Terintino of Kill Bill fame and Robert Rodriquez of Spy Kids are also here.

Anyway, my wonderful clients from Michigan bought a really nice home that is being built in Silver Leaf by Buffington and it should be ready for them to move in mid December. The temperature that day might be in the mid 70's.

If you are thinking of relocating from Michigan or anywhere else, consider Austin, Texas. It's frequently listed as one of the best places to live by a number of national publications.

Robin Scott, Broker. Certified Residential Specialist. Accredited Buyer's Representative. Seller's Representative Specialist.

Austin Smart Consumer

If you are relocating to the Austin area or are a current resident but need resources for doctors, dentists, accountants, painters and more, visit Austin Smart Consumer which is a great resource for services and I'm a featured business this week. Look for my photo on the left side. Click and read my advice column and view video interviews. I have one for real estate in general, home buying and home selling.

RELOCATING TO AUSTIN

If you're thinking of relocating to Austin, email me or give me a call. I'd love to provide you with the kind of information you'd like to help with your decision. I can tell you about outdoor recreation, sports, culture, museums, shopping and job opportunities.

Did you know that Austin is one of only 14 cities in the US to have a symphony, ballet and opera and also calls itself "the live music capitol of the world" with such internationally renowned annual venues as Austin City Limits and SXSW?

If there is something specific you'd like to know about, let me know. I can address it on this Blog.

Most frequently asked question by people relocating is "What do people in Austin complain about the most?" The answer is "Traffic." And that is the only complaint I hear people make about Austin.

Contact me at 512.589.7988 or email robin@robinscottrealtor.com

Homes sellers are also homebuyers. If you are in the Austin, Texas area and are planing to sell and/or buy a house, contact me for a FREE home market analysis and marketing plan or help finding and purchasing your new home. Robin Scott, REALTOR® 512.589.7988 or robinscottrealtor@gmail.com

Austin, Texas. Robin Scott, BROKER. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.

Search for homes through Austin MLS
Find your home's value
Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

Like us on facebook!