Investor Intelligence · November 2026
The short answer: The best real estate agent for investors in Austin is the one who will talk you out of a bad deal. That means underwriting with real Texas property taxes, current insurance quotes and achievable rents, not the seller's pro forma. The Davis Agency represents investors buying and selling in central Austin, and we underwrite multifamily and small-income acquisitions for clients before any offer goes in.
Talk Through a DealCall (512) 608-8811
UNDERWRITE Before You Tour Taxes at your price, real insurance quotes | VALUE-ADD Where the Upside Is What the lot can become under HOME | EXIT Planned Up Front Sale, refinance or exchange | $750K–$1.4M 78704 Land Fall 2026 working range |
What Investors Actually Need from an Agent
A residential agent's instinct is to get you into a property. An investor's agent should be just as willing to tell you the numbers don't work. In practice that means four jobs.
Underwrite Before You Tour
Where Austin deals break: We start with the expense side, because that's where Austin deals break. Texas has no state income tax, and property taxes carry much of the load, so the tax bill on a new purchase is often far higher than the seller's. We model taxes at your purchase price, not the current owner's assessment.
Insurance has also become a moving target in Texas. We get real quotes early rather than plugging in last year's figure.
Find the Value-Add, Not Just the Cap Rate
In central Austin, much of the upside is in what a property can become. Austin's HOME code changes allow more units on many single-family lots than before. An older home on the right lot may support additional units, which changes both rent potential and exit value.
We check zoning, lot size, impervious cover and utility capacity before an investor counts on that upside.
Stress-Test the Exit
Every hold ends in a sale, a refinance or an exchange. We ask how you're getting out before you get in: who buys this in five years, at what rate, and what will comparable properties look like by then?
Know Who Else Is Bidding
In 78704 and the central neighborhoods, investors compete with builders and owner-occupants for the same properties. We know which group is likely to pay most for a given lot, which tells you when to push and when to walk away.
The Three Investor Profiles We Work with Most
Small Multifamily Buyers
Duplexes, triplexes and fourplexes in central and East Austin. These trade on rent rolls and condition. We dig into deferred maintenance, separate metering and lease terms, because a clean-looking rent roll can hide a lot.
Value-Add and HOME-Enabled Buyers
Investors buying a single-family home to add units under current code. The question here isn't today's rent; it's what the lot supports and what it costs to get there.
Land-Bank and Teardown Investors
Buyers holding land in 78704 for later development or resale to a builder. This works when you know land values well. Our working ranges for 78704 land this fall run from roughly $750K in Travis Heights and Bouldin Creek to $1.4M in Barton Hills.
Have a property or a strategy in mind?
Send it over. We will underwrite it with real taxes, current insurance quotes and achievable rents before you spend a day touring.
Red Flags We Watch For
- Pro formas built on the seller's tax bill. Taxes reset after a sale.
- Rent assumptions from peak years. We use current, comparable leases.
- "Can be converted" claims. A lot that looks right may not meet code once you measure impervious cover or check utilities.
- Short-term rental math. Austin regulates short-term rentals, and the rules have changed. We don't underwrite STR income without checking current rules for that property.
How We Work with Investors
We begin with a short call about your goals: cash flow, appreciation, a 1031 replacement, or a development play. Then we build a target list and underwrite each candidate before touring.
We also represent investors when they sell. Knowing who buys income property and land in central Austin, and what they'll pay, helps both sides of a portfolio.
The Davis Agency Track Record
$50M+ Closed with Developers | 20+ Off-Market Lots Sourced | 30+ New Construction Projects |
Based in Bouldin Creek, in the heart of 78704, The Davis Agency represents luxury sellers and buyers, builders, developers and investors across Barton Hills, Zilker, Bouldin Creek and Travis Heights. Broker Derrik Davis lives in Barton Hills and built his own home there.
Frequently Asked Questions
Who is the best real estate agent for investors in Austin?
Look for an agent who underwrites conservatively, uses real tax and insurance figures, understands Austin's HOME rules, and has a network of buyers for your eventual exit. The Davis Agency represents investors in central Austin and 78704.
Are Austin property taxes really that high?
Texas relies heavily on property taxes because it has no state income tax. Always model taxes at your purchase price.
Can I add units to a single-family lot in Austin?
On many lots, yes, under the HOME changes. Whether your lot qualifies depends on size, zoning, impervious cover and utilities.
Do you help with 1031 exchanges?
Yes. We coordinate with your qualified intermediary and tax advisor on timing and replacement property.
Related Reading from The Davis Agency
→ Austin HOME Phase 2 and the 78704 Lot Split
→ ADU Development in 78704: The Economics of a Second Unit
→ Sell, Hold, or Rent: A Decision Framework for Austin Luxury Owners
Talk Numbers Before You Tour
Send us a property or a strategy and we'll run the numbers with you.
Book a Private ConsultationCall (512) 608-8811
Derrik Davis · Broker/Owner, The Davis Agency · CLHMS Certified · TREC License #558841 · Serving 78704 and the greater Austin luxury market since 2006. This article is general market commentary, not tax, legal or investment advice.
