Is Austin a flip or rental market?

[Sooraj Maharjan]

I'm trying to gauge the real estate market in Austin, TX and surrounding areas for a while now and based on my calculations rentals aren't making sense because I see no net cash flow yet. Clearly I'm wrong because I've heard investors making positive cash flows. I'm posting to see what folks have been successful in doing, rentals or flipping?

I'd appreciate if you could share your experiences, and I'm also looking to connect. I invest in rental properties out of state but I live here so I want to be able to invest here too.

[Ryan Kelly]

@Sooraj Maharjan as you predicted, long-term rentals are not going to cash flow in the near term with a traditional down payment. Most of my clients are making 1 of 2 choices: 1) bite the bullet and take negative cash flow to get a property now with a long-term tenant, or 2) use a creative leasing strategy to increase the cash flow yield using STR, MTR, rent by the room, or househacking to increase cash flow now. They can then switch to LTR later when/if the numbers make sense. If you live in Austin, would your current property work as an LTR? If so, I highly recommend keeping your current property and converting it to the rental once you go find a new primary residence. That strategy works well for those who purchased their current home more than 2-3 years ago.