Is Texas too hot to make sense for investors?

[Zhitao Cao]

Recently I am looking into Texas SFH market. It was as hot as bay area several years ago, no, actually even hotter. A new listing came up during Xmas day, and today there are more than dozens waiting in line for open house.

I have been watching listing for a while, and did quite a few deal analysis. From cash flow point of view, it doesn't really make sense. The best I can do is barely breakeven (CoC ROI is slightly negative). But buyers are crazy and each house that catch my eyes will likely have multiple offer within a few hours... I do understand there is big potential for appreciation if there is nothing to disrupt this steadily growing market trend.

Question: should I join those crazy crowd, or be rational and sit back to wait the right time to come (maybe foreclosure time will come in 6-12 months?).