We finally closed on 2731 Lyons on May 11th 2013. This project was a little frustrating due to a variety of delays but in the end it worked out well. To begin, when we bought the property the City of Austin had lost several reviewers and was re-organizing, which resulted in permit approvals backed up for weeks. From the date of purchase to getting our permits was about nine weeks. And because construction had picked up in Austin once we got started we had problems getting contractors on site.
As usual, Scott Cason of Austin Rebuild Team did a great job managing all the delays and dealing with the usual setbacks. On the bright side, as our finish date stretched out, inventory in Austin was shrinking and prices continued to rise.
The result was a very successful project with an annualized ROI of 55% for the project. This was a great outcome, but in addition to Scott’s skill the success was largely due to a shift in the market during completion. As Austin’s housing market continues to tighten up it will be more and more difficult to find projects that will generate this type of return.
Give me a call if you’d like to learn more about this type of investing, or whenever you have questions about Austin real estate. I’m never too busy to help.