Acceptable negative cash flow in Austin/ i35: corridor

[Nick Anderson]

I’m curious what people who are currently investing in Austin and surrounding areas (buda/Kyle/San Marcos/round rock etc.) are willing to accept for negative cash flow in order to get in on appreciation?

I know there are deals out there that are break even or maybe cash flowing $50-100, but are you missing out on appreciation by waiting for that deal?? What are y’all willing to take on in general in order to capitalize on appreciation?? Thanks!

[Dan Burstain]

Anyone have an idea what the largest drop in price has been in Austin in 40 years?  2.9%...1.9% during the housing crisis (worst thing ever to happen to real estate).  Do you think every city in the US is like that?  Do you think a huge government and university job base may have something to do with the lack of a roller coaster ride in prices you see in other cities?  Does it make sense that not all cities share the same investment makeup?  People who tell other investors they should never buy something with negative cash flow in a city that they don't have a strong understanding of the data history for that city are not helping that investor.  Despite your track records.  Despite what you have had success with.  Let me tell you people have made millions in real estate in Austin and will continue to do so despite not breaking even or showing positive cash flow in years one and two.  So to blanket statement saying never invest in negative cash flow may be something that resonates with you but should not be the rule of law for investing.  I am looking to buy my 7th investment property here in Austin and none have started with positive cash flow and all have positive cash flow now.  Just about every home in Austin went up $100,000 or more in the past year.  How much positive cash flow and appreciation did you make last year?  Is it a spike, a bubble?  Well if it is it would be the first in our history and oh, 1700 companies moved here from California the last few years.  Apple, Tesla, Oracle, Samsung, Amazon, have yet to open their new facilities here.  150+ people move here a day and all based on jobs, jobs, jobs.