What is the market sentiment investing in a townhome or duplex?

[Kelly Stanton]

What is the sentiment around investing in duplexes or townhomes in this market? We've found a number of new developments that have reasonably good prices, but are not feeling all that confident that it will be a good long term investment that will appreciate vs a single family home. Any thoughts?

[Eliott Elias]

Quote from @Kelly Stanton:

Quote from @Eliott Elias:

Quote from @Kelly Stanton:

Quote from @Eliott Elias:

Depends on the area, you want to make sure the rental demand is strong. Most duplexes in Austin don't even make sense, you barely eliminate your living expenses with one side. I would buy in Austin MSA and try to STR one side

 How do you feel about new developments out east by the airport? I've been hearing a lot a new "plans" for Tesla, Boring and potentially SpaceX that could increase rental demand in the area. Could take a while though. 

 You want something that is going to cash flow today, not speculation 

 That's fair. My thoughts are if we could cash flow even a couple hundred dollars in that area, there is exponential potential for rental demand that could drive prices up. My understanding is that the Tesla plant is currently only operating at 1/3 of operating capacity, so many more prospective renters moving to that area soon. 

 There are arguments to be made, if demand never comes are you happy with the investment you made?