@Hernan Guelman,
Other options would be investing in markets that aren't as hot. I had dinner with a guy from BP the other day who came to our fair city. (Chatt, TN) to look at rentals. He is accustomed to doing turn key stuff and getting anywhere between 10 and 20% CoC returns. From My understanding he plans on having someone around here to find stuff for him and a property manager manage it. Depending on your loan scenario we have a number of different CoC options that are north of 15%. I think a lot of it boils down to, do you want to look at Real Estate as a way to diversify your portfolio into something with more secure returns, or do you want to build a business that acquires and rents properties.
I am interested in the later, so for me, it makes more sense to be in a market that is close and that I am familiar with.
If you are in the former category, then hypothetically it matters much less where the investment lies.
I have a deal up on the Market place in Chatt that with your loan terms and accounting for 50% expenses, and not accounting for any appreciation, your CoC would be 15.9%.
All in all I think your situation can be summed up in the sense that it doesn't make sense to invest in this area (austin) without an almost speculative appreciation play. But like Brandon and those guys say on the podcast, there is probably a market within an hour drive that does make sense. And if not, you can always come visit our happy town (Outside magazines town of the year) and look at what we have.
take care and happy investing.
ps- I love numbers, so if you ever need help figuring out a deal, please PM me.
-Luke
