The Austin real estate market forecast tells us that it is set to be one of the best places for buying a rental property in 2020. So if you want to begin your Austin property search today, it’s best to start in one of the top neighborhoods for real estate investing in the city. Mashvisor’s neighborhood data on the Austin real estate market can point you in the right direction.
To help you figure out exactly where to start your search, we’ve provided neighborhood data by property type. That way, if you’re only interested in finding multi family homes for sale in Austin, for example, you’ll know exactly which neighborhood is a prime location for this type of rental property. Check out the list below to see the best Austin neighborhoods.
The Best Neighborhoods in Austin for All Investment Property Types
Johnston Terrace
- Median Property Price: $258,977
- Price per Square Foot: $196
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,596
- Traditional Cash on Cash Return: 1.9%
MLK 183
- Median Property Price: $350,878
- Price per Square Foot: $236
- Price to Rent Ratio: 19
- Traditional Rental Income: $ 1,528
- Traditional Cash on Cash Return: 1.6%
South Manchaca
- Median Property Price: $392,983
- Price per Square Foot: $313
- Price to Rent Ratio: 16
- Traditional Rental Income: $2,037
- Traditional Cash on Cash Return: 1.5%
Montopolis
- Median Property Price: $386,619
- Price per Square Foot: $269
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,753
- Traditional Cash on Cash Return: 1.3%
North Loop
- Median Property Price: $489,857
- Price per Square Foot: $374
- Price to Rent Ratio: 17
- Traditional Rental Income: $2,339
- Traditional Cash on Cash Return: 1.3%
Start your search for an Austin investment property for sale now.
The Best Neighborhoods in Austin for Single Family Homes for Sale
MLK 183
- Median Property Price: $322,557
- Price per Square Foot: $213
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,554
- Traditional Cash on Cash Return: 1.9%
Johnston Terrace
- Median Property Price: $258,977
- Price per Square Foot: $196
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,596
- Traditional Cash on Cash Return: 1.9%
Montopolis
- Median Property Price: $381,075
- Price per Square Foot: $272
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,746
- Traditional Cash on Cash Return: 1.6%
University Hills
- Median Property Price: $332,256
- Price per Square Foot: $214
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,635
- Traditional Cash on Cash Return: 1.2%
North Loop
- Median Property Price: $534,000
- Price per Square Foot: $396
- Price to Rent Ratio: 18
- Traditional Rental Income: $2,469
- Traditional Cash on Cash Return: 1.2%
Start your search for single family homes for sale in Austin now.
The Best Neighborhoods in Austin for Condos for Sale
Looking at Mashvisor’s real estate data, condos perform the best (on average) in the Austin real estate market 2020. They have the highest average cash on cash return by city compared to the other types of investment properties. Here’s how they perform on the neighborhood level:
Allandale
- Median Property Price: $237,300
- Price per Square Foot: $211
- Price to Rent Ratio: 12
- Traditional Rental Income: $1,707
- Traditional Cash on Cash Return: 2.5%
St. Edwards
- Median Property Price: $247,294
- Price per Square Foot: $284
- Price to Rent Ratio: 15
- Traditional Rental Income: $1,365
- Traditional Cash on Cash Return: 1.4%
Sweet Briar
- Median Property Price: $290,450
- Price per Square Foot: $174
- Price to Rent Ratio: 15
- Traditional Rental Income: $1,662
- Traditional Cash on Cash Return: 1.3%
South Lamar
- Median Property Price: $437,150
- Price per Square Foot: $280
- Price to Rent Ratio: 18
- Traditional Rental Income: $2,033
- Traditional Cash on Cash Return: 1.3%
East Oak Hill
- Median Property Price: $291,633
- Price per Square Foot: $258
- Price to Rent Ratio: 15
- Traditional Rental Income: $1,654
- Traditional Cash on Cash Return: 1.2%
Start your search for condos for sale in Austin now.
The Best Neighborhoods in Austin for Multi Family Homes for Sale
Franklin Park
- Median Property Price: $283,990
- Price per Square Foot: $158
- Price to Rent Ratio: 9
- Traditional Rental Income: $2,650
- Traditional Cash on Cash Return: 5.9%
St. Johns
- Median Property Price: $250,000
- Price per Square Foot: $196
- Price to Rent Ratio: 13
- Traditional Rental Income: $1,545
- Traditional Cash on Cash Return: 2.2%
Start your search for multi family homes for sale in Austin now.
Now You Know Where to Invest in the Austin Real Estate Market. What Next?
Now that you are armed with a list of the best neighborhoods in the Austin real estate market, it’s time to start your investment property search. The quickest way to find high return properties is to use real estate investment software.
Let’s say you want to find a single family home in the neighborhood of Montopolis. And you want to try to do so using Mashvisor’s real estate investment software. Here are the steps you should follow to get started with Austin real estate investing:
Step #1: Enter the Name of the Austin Neighborhood in the Search Bar
The first step is actually to make sure you’re signed up for Mashvisor. Once you do that, visit your Dashboard. Type “Montopolis, Austin, TX” into the search bar in the top left corner. Select the neighborhood from the dropdown menu:
You’ll be taken to the map of the neighborhood which also shows all of the Austin homes for sale here.
Step #2: Set the Filters for Single Family Homes for Sale
Because we are interested in finding single family homes for sale in the Austin real estate market, we need to set the appropriate filters to narrow down our search. For this, you’ll want to click on “More Filters” and set:
- The “Property Type” filter to “Single Family Home”
- The “Property Status” filter to “For Sale”
There are other filters you can use to find the exact Austin real estate for sale you’re looking for including:
- Minimum Bedrooms
- Minimum Bathrooms
- Year Built
- Square Feet
- Traditional Rental Income
- Airbnb Rental Income
You also have a choice to set filters for other types of Austin investment property and differing statuses as well:
- Property Type: Townhouse, Multi Family, Condo/Coop, Other
- Property Status: Pending, Sold, Foreclosure
Note that if you’re looking for foreclosed homes or multi family homes in the Austin housing market, you’ll need to sign up for an Expert Plan to access these two filters.
Hit “Apply” once you’ve set your investment property search filters. Here’s what you’d see if you just selected “Single Family Homes” and “For Sale”:
At the time of this writing, there are 9 single family homes for sale in this neighborhood in the Austin real estate market. Which is the best rental property? Follow steps #3 and #4 to find out.
Step #3: Select Either Cash or Mortgage
What’s unique about Mashvisor’s search tool is that it allows you to factor in your financing as you look for investment properties for sale. Do you plan on using a mortgage or paying in all cash? Set the filter found in the top panel (as pictured above). If you’re using a mortgage, you can also add your loan info:
- Down Payment
- Loan Type (30-year fixed rate or 15-year fixed rate)
- Interest Rate
Related: Buying an Investment Property: Cash or Mortgage?
This will be immediately reflected in the cash on cash return calculation of every real estate property for sale that you see using the search tool. That way, you can find high cash on cash return property based on your actual financing terms. Use an Airbnb calculator to make forecasting your ROI easier.
Step #4: Sort the Listings by Descending Traditional Cash on Cash Return
The final and most important step of this is to set one more filter: the “Sort By” filter. As you can see above, Mashvisor’s search app displays all of the Austin real estate investments for sale in the right-hand panel on the screen. To see the ones with the highest cash on cash return, click on “Sort By” and select the descending “Traditional Cash on Cash Return” filter. With that, the best Austin rental properties for sale will be found at the top of the list. Sign up to try this out for yourself.
What If the Investment Properties Are Bought Up Before You Get to Them?
As you can see, today there are only 9 single family homes for sale in this particular neighborhood in the Austin real estate market. Austin is actually a very hot seller’s market. And typically, when Mashvisor releases these kinds of lists, Austin real estate investors rush to buy up the investment properties in the listed neighborhoods. So what can you do if you start your search in one of the above neighborhoods but you don’t find what you’re looking for? You can easily compile your own list of the best neighborhoods in Austin. Here’s how:
Related: Tips on Buying an Investment Property in a Seller’s Market
Step #1: Key Austin, TX into Mashvisor’s Search Bar
As before, visit your Dashboard. This time, type in Austin, TX rather than a specific neighborhood. You’ll be taken to a map of all of the neighborhoods in the Austin housing market.
Step #2: Click on “Explore Data”
Hit the “Explore Data” button on the top left corner of the map. This will reveal a few neat filters:
- Listing Price
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Airbnb Occupancy Rate
You’ll need these filters to conduct your own neighborhood analysis of the Austin real estate market 2020.
Step #3: Set the Filters
Let’s say you want to identify the most affordable neighborhoods in Austin. You also want to make sure they have high cash on cash return properties for sale. You’ll need to focus on two filters:
- Listing Price
- Traditional Cash on Cash Return
If we set one, the Real Estate Heatmap is activated. This real estate market analysis tool will color-code the neighborhoods in the Austin real estate market for us. That way, we know how they are performing according to the filter’s metric. Setting the “Listing Price” filter colors the affordable Austin neighborhoods in red and orange:
Setting the “Traditional Cash on Cash Return” filter colors the neighborhoods with the highest return in green:
Comparing the two heatmaps will help you identify the neighborhoods that match your exact criteria in minutes. That way, you can find out where to invest in the Austin real estate market whenever you’re ready to make a move. And you won’t have to worry about missing out on opportunities because a real estate investment tool like this will always help you find them- anywhere in the US housing market.
Related: Finding Income Properties Using a Heatmap
Start Your Search for Top Austin Income Properties Now
By using either the list of top neighborhoods or the tools Mashvisor puts at your disposal to help you identify key Austin real estate market trends, you’re ready to start your search. Buying property in Austin could be the best financial move you make all year if you find the right investment property.
Start investing in Austin real estate by signing up for a 7-day free trial with Mashvisor to access our tools.