Need feedback on a specific community in Austin : Rental unit

[Peter Shaw]

I'd like to invest in a rental property in Austin. 

I have an agent in Austin, who has narrowed down our search to the following communities. The criteria for selection was : <400K, close to the city, a property that's easy to sell, will appreciate and rental income (in that priority order). I don't really care about the size of the house or a big yard.

The first option is Amber -- Here's the developer's website Builder's website: http://www.calatlanti chomes.com/find-your-new-home/ 2-austin/8115-amber-oaks.html

The 2nd option is Parmer Crossing -- https://www.pulte.com/homes/t exas/the-austin-area/austin/pa rmer-crossing-209615

They are both close to Dell, Cisco and other IT companies.

I'd love to get advise.

Thanks,

[David Ferrette]

I think it is going to be hard to have these properties cash flow positive.  I know you say cash flow is low on your priority but why buy a property if you are going to be out of pocket every month.  That isn't a model you can scale very well.  What if there is a down turn in the market, then you will be upside down on the home and losing cash each month.  Why not buy in another location where you can get appreciation and cash flow?