Cash Flow vs Equity - Austin, Texas

[JP Lococo]

Hi everyone, I’m wondering if there is a general opinion when it comes to trying to find cash flow vs acquiring a property with no cash flow (or negative) but strong YoY appreciation growth. That’s the situation in Austin right now as price points have outgrown rents. That said, with Tesla, Samsung n others on way I’m trying to understand if it’s worth it as it’ll be a decade before things slow down here. 

So worth placing more down on to try and make things cash flow or not worth it?

Thoughts?

[Ryan Kelly]

@JP Lococo my opinion is to never buy with negative cash flow. Appreciation is never a guarantee and something you can't control. In the Austin metro area, look for options to boost cash flow yields if you can't cash flow with a traditional down payment. Options include more money down, short-term or mid-term rentals, renting by the room, BRRRR, and house hacking (if a primary residence).