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Cash Flow Capable Kings of the Texas Coast

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.

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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