It’s so saturated that there’s no room for a competitive advantage.

So my question is this...even in Hutto the houses are in the low 200's while rents only support about 1100-1700 (if you're lucky on the 1700) a month and the market appears to be pretty saturated with available rental homes.  

Although this market is saturated and very expensive there are gems where value can be added and great cash flow can be had.

Are they all chasing the same thing and willing sit idle while looking into over-saturated markets with little to no inventory?

Next thing you know the market is saturated, bringing the housing market to the ground.

There is always a saturation point and we're at that point.

I love that idea and does seem like a possibly better fit over the saturated flipping market in San Diego. 

We are a little above average based on places similar to ours but we have all 5 stars and lots of amenities.It will be tough to saturate this area as cash flow will be negative based on the price increases over the last 2-3 years.

Another confession to make, I recently moved from a great real estate investing market, to a very saturated RE market.  

A portion of the problem of the problem is that the market in New Orleans is very saturated so there is a challenge to stand out from the competition.