I'm back one last time this semester and I have enjoyed blogging (for the first time ever, I might add) about my real estate interests the last few months. As I prepare to graduate in May with a Bachelor's degree in finance and move towards beginning the Master of Real Estate program in August, I know I will look back on this class as one that really solidified my decision to pursue a career in Real Estate.
Every member of my immediate family is an Aggie graduate, and from the time my brother started his freshman year here in 2008 up until now, our family has been season ticket holders for Texas A&M Football. Over the past few years, the program has soared to new heights and the excitement is at an all-time high here in Aggieland. That being said, my parents are looking for new real estate investments in the area to help cut down their expenses every fall and also provide a source of steady cash flow as they prepare to retire. Currently, my parents own an RV and park it near the basketball arena each home football game weekend. Not only is the initial purchasing costs for the mobile home high, but my parents dish out hefty operating costs each month for parking, maintenance, storage, etc.
Over the past several months, my parents have been looking for properties for sale in the College Station area and have asked for my input in the process. My expertise on many of the factors is limited, but it's been quite an experience helping them attempt to value these property investments. Our goal is to find a property that is (a) located in the Southside Historic District near campus, (b) have prospects for extensive renos, and (c) be an ideal size/location that would be appealing for renters. Issues that we have run across thus far have been the fact that properties in this area, for several reasons, don't last long on the open market. We believe that with the student growth in the city, coupled with the large amount of developers wanting in on the action, we are competing against folks who are in the know well before us. These developers know what's selling, when it's selling, and for how much.
Regardless of whether the odds are stacked against us, we still have had the opportunity to pull the trigger and put in offers but have been hesitant to do so. Some properties seem to be too expensive to do a tear down and rebuild. Others seem too far from campus with no room for parking, making it unattractive if we were to market to students or family renters. Another big question is if Bryan/College Station can continue the growth we have seen over the last 3-4 years.
Properties in the SSHD have seen annual growth in value anywhere from 8 to 20% since 2012. The prospects look great for a long term investment, as Texas A&M University is planning huge student increases, properties are being developed further and further outward, and the excitement of the university's athletic successes (see Kyle Field, Aggie football and baseball) is higher than ever. However, it's important to question the popular belief and consider the likelihood of a pullback in the market on the horizon. My parents have long term interest in whatever property they choose to buy, so this might not be as important of a factor to them as it is to some. But being sole investors (not looking to partner in the deal), this is still a factor to consider, nonetheless.
I'm very blessed and thankful for them involving me so much during the process, as I have not only enjoyed every minute of it, but I have learned a ton in the process. With my dad and brother being commercial real estate professionals, there's nobody else I'd rather learn the ropes from. Whenever my parents come in town, we spend a few hours each day just driving around looking at different properties and weighing our options. When the family is back home in Houston, I serve as a Realtor of sorts, taking pictures of different houses, walking off property lines and calling brokerage firms to ask for quotes.
Hopefully, in the near future, my parents will decide to close on a deal and I can live in the house during my final semesters of graduate school. By bringing my friends in to live with me as renters, I can help make the transition seamless for my parents and provide them with some immediate cash flow without having to market or search for potential tenants. Also, it would be pretty sweet for us to have a weekend house for the next few years so we can hang out in our own place while we watch some Fightin' Texas Aggie football!
Well that's all I've got. It's been an exciting and helpful semester, and I have enjoyed learning everything that I have over the past few months. And to Mr. Peterson, thank you for everything you've done for me throughout the semester and I can't wait to take some more of your classes next fall in the Master's Program!
Best,
Austin Decell
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