Now with the economy the way it is the prices have not come back down and probably have increased a little more. 

I think they are making a risky bet w this property, buying at a 5 cap rate, loan is fixed at 5.7% and 2 new properties about to open very nearby and who knows how many in construction phaseVillas at Sundance | Investment Opportunity (vikingcapllc.com)You are very lucky to live in Austin, fastest growing big city in country, and a micro-cosm of the global economy, this too gives you an educational edge

The way the economy has been manipulated has been brutal on people.2.

You'll want to focus on areas: - With multiple drivers to the local economy (not just 1 industry)- Steady population growth (demand)- Increasing median rentsIf I were in your shoes, I'd begin conducting research on different cities of interest.

Also rereading Ravi Batra's The Great Depression of 1990, just wanted a paperback for the plane ride and it is amazing how much of it is relevant to today's economy. 

In this industry, people know people very quickly and reputation is everything-- when working alongside others on their financial futures/supporting local economies, truth is the hallmark of success.

Lots of money going to these sticky tenants, strong demand regardless of economy...

Therefore, I tend to make much more conservative decisions with saved money than I do with borrowed money.Also,  an inflationary environment is favorable to a debt based economy.   

Also think about strong economies with diverse industries.

Good.This is Not 2007Interest rates are unlikely to crash housing prices, the labor market, consumer spending and economy are too strong.