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Cash Flow Capable Kings of the Texas Coast
1327 Views ::
4 Comments :: :: Real Estate, Investment |
The Cash Flow Capable Real Estate Kings of the Texas Coast part one (in part two we'll discuss the unique qualities that make these the properties standout in value for income and appreciation potential)
We have identified several NEW vacation home investment opportunities
on the coast which demonstrate extraordinary wealth building
possibilities including:
- income potential greater than costs,
- strong appreciation capacity, and
- lower long term operating costs.
These are new properties built to higher standards which make them more:
- attractive,
- energy efficient,
- insurable,
- storm resistant,
- maintainable, and
- resort-like.
We have researched these following properties as the best examples, although there are most likely more.
Contrary to popular
thinking about real estate today, if you have the
cash or credit, these make a great case for buying right now. In fact,
we have recently purchased several from this group and are experiencing
a positive cash flow, and we are confident you can too.
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Online tools that can help:
Click here for an online calculator that gives a quick read on the economic viability of a property. It divides the net operating income from renting the property by the price of the house, giving you an investment yield also called a capitalization rate.
Use this tool to help analyze rental properties (requires free registration)
calculate real estate cap rate, yield, gross rent margin, cash flow (before & after tax), and rate of return. Estimate the impact of changes in market assumptions. |
Background Information
As we have discussed before, Texas is one of the few states that did not have a real estate price bubble that collapsed and dropped real estate values. If you look at the most conservative price index by Case-Shiller, you can see Texas did not have home values jump high then crash like most other markets.

If we isolate Texas vs. the U.S average and Phoenix as an example you can clearly see Texas avoided the real estate bubble and crash everyone is talking about nationwide:

Other positive key factors today are:
- Record low interest rates,
- Motivated developers and sellers offering below value affordability,
- A very strong rental demand from our large near-by metros,
- A large growing interest from retiring baby boomers,
- The concerns of future inflation creating a need for owning real assets that will hold their value.
- New homes and communities which are a significant improvement over the existing products.
The Texas coast is "feeling" the nationwide recession and experiencing negative effects from Hurricane Ike, falling oil prices, the sub-prime mortgage fallout, and a slumping stock market - all of which have dampened consumer confidence and stalled sales, but our median prices are holding and our rental demand is stronger than ever. These slow-down conditions are temporary and many experts predict Texas will be the first state out of the recession.
However even now, there are isolated cases of rare & remarkable value with opportunities that are just too good to pass up on right now.
We have the specific details on why each of these following properties are uniquely exceptional opportunities, contact me to find out more - or one of the brokers listed here.
Some of the common traits our top picks share include:
- They are new or newly renovated and ready to move-in and enjoy right now,
- Their common amenities are completed,
- They are financially sound,
- The owners have taken the path to add more value as a way to incentivize purchasing and may still yet negotiate further incentives for a time,
- They are in the best locations within their area,
- They are equitably priced, yet have more features than the properties surrounding them,
- They are remarkably more visually appealing and raise the bar of quality for their location,
- They are more storm resistant, energy efficient, and will be easier to maintain.
- There are external factors which will specifically make these particular properties much more valuable.
- Most of all, they have a good potential to generate positive cash flow and appreciate in value.
Without further ado, here are our top cash-flow-king picks by area:
South Padre Island
Port Aransas Mustang Island
Galveston
And our bonus pick for an international emerging market favorite that is of unparalleled beauty, on the same latitude as Hawaii and is a direct 2hr flight from Houston.
Huatulco Mexico

Related Article: The Texas Coast Welcomes Back Investors |
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| Comments | |
By Seeking Alpha @
Friday, May 29, 2009 |
Consumer confidence is surging, investment fear is subsiding, and brave buyers are wading back into the home market.
The National Association of Realtors said that sales of existing homes rose 2.9 percent. The annual rate now stands at 4.68 million homes, up from the 4.55 million annualized rate in March.
The results were higher than most economists' had forecast.
Continued low home prices and historically low interest rates continue to attract investors and owner-occupied buyers. First time home buyers are continuing to enjoy an $8,000 tax credit from the stimulus package passed earlier this year.
In related retail market reporting, the recent consumer confidence surges are also translating to retail strength. On Wednesday the ICSC-Goldman report showed strong sales in the week ending May 23. Same-store sales were up 0.8 percent in that week with year-on-year sales up 0.5 percent -- both readings were two of the best weekly jumps of the year. |
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By TexasRealEstate.com @
Friday, May 29, 2009 |
Texas claims 3 of 4 “up” markets, while home prices nationwide fell 11.6% in January compared to a year ago, Texas had three of the only four housing markets in the country where homes actually increased in value.
Austin-Round Rock had a 3.9% increase in housing market value,
Houston-Sugar Land-Baytown home values jumped 3.6%, and
Dallas-Plano-Irving grew by 1.5%.
Statewide, home prices rose nearly 2%, according to a report compiled by First American CoreLogic. |
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By Realtor.org @
Friday, May 29, 2009 |
Forecasters Say Recession Nearing End More than 90 percent of economists think the recession is nearing its end, but they don't expect the economy to soar anytime soon.
Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter.
Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.
Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there have been an increase.
Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor. |
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By
Terry Bryan, Texas Real Estate Investing Association @
Sunday, May 31, 2009 |
We are right now seeing the best opportunity to make money investing in real estate than we will probably ever see in our life.
Many people are told you can't do options or lease options but it is just because they don't know how. In a buyer's market, you could sell your house for full price and within a month.
In an unsure market and not knowing if we have hit bottom or not, options are a good strategy to use because it is a unilaterial agreement, you can buy if you want to but are not obligated to purchase if you decided not to. The perfect weapon in this market, especially in higher end properties and commercial projects. |
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