Question about rental cashflow in Austin

[Dain Waters]

Hello,

I've been procrastinating on making my first investment purchase here in Austin. I'm wondering if anyone has any feedback or experience on purchasing and renting a newish (1-5 years) construction home. Based on current newish home prices and rental prices, any purchase I make I'm probably going to break even with cashflow. Has anyone seen differently and if so what areas are the best for investment opportunities? 

If my assumption is correct, break even, how long before a positive cashflow is netted? I realize this would depend on what I can charge for rent. Just not sure how fast rent prices have/will go up and what to expect say 1-5 years out. 

Thank you!

[Matt Millard]

I highly recommend building a team & investing for cash flow in markets that are still favorable to new landlords like Kansas, Oklahoma & Arkansas. Take a road trip & look at college town rentals or a nice suburb like Derby, KS.

In Austin I would suggest house hacking & buying a quad or duplex & living in one & have tenants pay your mortgage. You can do FHA 3.5% down payments with this strategy too.