New investor looking for some guidance in SFR

[Raghuram Janakiraman]

Hi, 

I am an out of state investor looking for my first rental investment in Austin. I am looking to buy a SFR in the range 350 - 400K within the suburbs of Hutto, Manor, Pflugerville. Would like to understand how is the rental market in these areas.

1. Would renters prefer single story vs two story homes ? Also, how is the re-sale value for single vs two story homes ?

2. I am currently looking at 3bed/2bath homes at around 1400 - 1700 sqft range. Any suggestions on the size/spec that would be more preferable for renters ?

3. Any other general Do's/Don'ts for rental investment properties which can help in making it favorable for renters. 

4. Any common pitfalls to avoid/factors due to which houses might not get rented soon in these areas ?

I am buying this property only for investment purposes, though there would be a small negative cashflow currently, I am aiming at appreciation with buy & hold.

With the current competition in Austin market, I am looking at buying a new construction home, since it has become very hard to close on a re-sale home due to every house getting 10+ offers and all houses going atleast 10% over list price.