Once you've done your homework on Everbooked, AirDNA, clicking around on other listings, and using common sense, you should be able to make a relatively safe bet on whether your STR will cash flow positive in your area. 

There is a reason Austin is #1 on the ULI list this year - it's super fast growing.However, I think you could cashflow in Austin, if you find a deal and are creative.In my opinion, East Austin is one place where I would bet on for appreciation (if you believe that density drives appreciation).

I am not sure if you would consider that C or D class and while I suspect you will cash flow with you financing set up that’s a lot of trouble for not a lot of cash flow.

Be careful if this is your first foray into multifamily taking down a C or D class property.

@Jason Evans 50-100k for a 2-4 family is possible, but most likely you are looking in C or D area, or at something distressed and in need of rehab work.

But again how can you bet on this variable alone.

Goldman Sachs just placed a $865,000,000 bet on Venezuela yesterday.

So if you wanted to bet on another 2% appreciation due to gentrification you would have an IRR of closer to 10% which is about as good as parking your money in the S&P and hoping for the best.PS.

It's OK to be one of those, but not the other.6% physical vacancy is achievable in Houston if the property is C+ or better and the area is good.  2% loss to lease is likely light if rents truly are 20% below market. 

They could have hired a lot of other candidates, but they bet on me.