Homeless RV Park planned for East Austin

Some of you may have read my letter to the editor in the  Austin American Stateman.  It was a condensed version of this letter I posted on the statesman blog.

http://denadavis.statesmanblogs.com

Let me just be clear– the city council passed this thing quicker than a “Bear Sterns Bailout”.  This was practically done under the cover of nightfall.  The only difference was that the council meeting was unexpectantly changed to a daytime meeting– where the  majority working  residents could not take off work to protest. 

At issue here is the complete lack of transparency by the Austin City Council.   Austin is a progressive city.  I applaud that.  I also applaud the fact that the city council is attempting to do something progressive about the homeless in Austin. 

What bothers me is that they are relocating them away from the newly minted wealthy downtown condo buyers and transfering them to the backyard of lower income working families that live close to Harold Court in East Austin.  All with very little notice.    Try doing that in Travis Heights.  Or close to Circle C.  Or Shady Hollow.

I am not against the homeless.  I am not against Mobile Loaves and Fishes.  The homeless is a community that needs to be served.  Mobile Loves and Fishes is a fine organization who did what they needed to do serve the homeless.  I take issue with the City Council and thier lack of regard for the input of a disadvantaged citizenry.

http://www.mlfnow.org/site/DocServer/Land_Design_Partners_Preliminary_Site_Plan_March_2008.pdf?docID=1841 

 

 

 

Where is the best place to invest in Austin Texas?

 It depends on what your goals are and how much you have to invest.  The city was developed from the central core of the city outward.  the central core of the city is downtown  austin. Home to the cities 2 largest employers Univerisity of Texas and Texas State Government.  It is also a cool, hip clean place to hang out. 

You have to understand land values.  I moved here from Los Angeles.  In the beach communites the beach front was the most desirable ( scarcest) real estate.  The property a few blocks from the beach isnt as value as beach front — but still in high demand.  The same is true for Austin Texas.  Think of downtown Austin as the “beachfront” of Austin. 

Just like California beachfront– you cant put a 20% downpayment on a downtown Austin Property and have a cash flow.  Why?? The appreciation of the rent prices has not kept pace with the appreciation of the property.   In fact, it is impossible to find a property west of I-35 and east of Mopac ( aka Loop 1) in the downtown area that will even break even with a 20% downpayment. 

About 3 years ago— as prices began to really escalte West of the I-35 — real estate entreprenurs began investing and rehabbing properties East of the I-35 close to downtown.  Zip code 78702.  Median family home prices in this area have risen by double digit rates.   

As those areas began to rise– the next area — to see the escalation was 78723 and the area immediately surrounding the Mueller Airport Redevelopment.   www.MuellerAustin.com

What is the signifance of Mueller to appreciation rates in East Austin?

Although the area is close to downtown and the central core of the city— it lacked retail and restaurants and services desired by professionals and the creative class.  With the opening of Mueller those retailers and services are available.  Dell Childrens hospital is a major anchor to the employment in the Mueller Redevelopment. 

I belive there is a tremendous opportunity for the appreciation in the following suddivisions:  University Hills, Vintage Hills, Preswick Hills.  A newly rehabbed property in one of these neighborhoods can run you 250K for a 3/2 with 1400 sq. ft.   That property will rent for about 1500.00 to 1600.00.    But this would be buying the most expensive house in the neighborhood. 

I suggest that you buy a home for about 179K to 189k that is in good condition– maybe something that needs some carpet and paint 1200 sq. ft.  That would buy you a 3/2 1200- 1400 sq ft.  That home would rent for approximately $1200- $1300.  Yes– I know — this wont cash flow with a 20% downpayment.  My suggestion is that you make a larger downpayment.  These are neighborhoods that are going to appreciate 10- 12% in the next year.  And very likely for the next 3 years.  You have to look at your return on investment.  If you would like to see a example spreadsheet for this type of investment — e-mail me at dena@investinaustin.com