Austin Rental Market

[Account Closed]

I'm looking to purchase my third rental property in the Williamson County area of Texas (suburbs north of Austin). However, the market seems really tough for rent and hold. Appreciation has been great, but rental rates seem to lag too far behind home values. I was able to buy a home in 2012 at the bottom of the market that now makes a decent ROI, but that same home has supposedly appreciated $100k and would be worthless as a rental if I purchased it today.

I went to a foreclosure auction this Tuesday just to see what's what.  Sure, people got homes at significant discount, but it still wasn't good enough to create the kind of cash flow I see people posting about elsewhere.  And who knows what repairs were necessary.

What's the answer?  I haven't been able to find a good wholesaler or contractor, and all those deals are cash only anyway.  With interest rates what they are, but I'm not sure paying cash is a great idea.

What's the answer?  Go elsewhere?  Maybe up to Fort Hood area?  Any thoughts?