First time that I am actually glad that I have to go commercial - rates are actually lower.

However, pricing in Austin is still substantially above pre-pandemic levels.

It really depends on the investor, their comfort level and goals. 

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Here's a breakdown to consider:Cleveland: @Zeke Liston You're right, Cleveland often boasts lower purchase prices, making entry easier.

It's way lower risk while you're getting your feet wet.BRRRR definitely has better potential returns, but it also has way more moving parts that can go wrong.

Thanks Joe, you helped really press some buttons of next level thoughts and considerations on this. 

I have STR investors in Florida making 25% cash on cash returns, long term rental investors picking up properties directly off the MLS and cash flowing day 1 in various states, and house hackers completely removing their housing payment from the picture allowing them to save for for the next property.The beautiful thing about real estate is there are so many ways to succeed and a plethora of strategies depending on your comfort level and how active you want to be.

You'll definitely get the long term appreciation in the San Diego market since our supply levels remain low which helps to insulate our market here, but it will be hard to cash flow on immediately unless you use one of the above strategies I mentioned. 

Rent for a few years and convert to primary.Next Step/sHow do we shift while keeping AGI at lowest levels?