Investor Spotlight: Building a Portfolio Across Two States

One of our long-time investor clients recently closed on his sixth rental property, split evenly between the Austin metro and a secondary market in Colorado. We sat down with him to talk through how his strategy evolved.

His approach offers a useful template for investors thinking about diversifying beyond a single market.

His first two properties were cash-flow-focused single-family rentals in Round Rock, purchased specifically for their strong rent-to-price ratio. As equity built, he used a cash-out refinance on those two to fund down payments on properties in a secondary market with lower entry prices and higher cap rates.

"Diversifying across markets protects you if one local economy slows down. It also means I'm not checking one city's job report every quarter and panicking." — Verlyn Investor Client

His next move: a 1031 exchange planned for later this year to roll equity from an appreciated Austin property into a larger multi-family building, a strategy our investment advisory team helps structure regularly.