Its a great place for cash flow and depending on your investment strategy there is a very wide range of types of investments.I have been working on the investment side of real estate for several years now and know the city very well when it comes to buy and holds.I own a few myself and have and have wholesaled and worked with a ton of buy and hold investors.You need to be careful of what you are really buy in SA though as what you are experiencing in Austin is happening here as well but mainly on in low-end properties.

There is some really bad advice about strategies to establish credit in this thread.

The reason why I'm still considering it is that my longer-term strategy is to convert the current water heater closet into a half bath, and THAT will result in higher rent for sure.

BRRRR strategy or value-add & 1031-ing are the ways to move quickest, but it's still going to take years. 

I've been doing build to rent off and on (when I can find great deals on lots) since 2010 and it's my favorite strategy.

A recent post that I wrote discussed exit strategies on a property that we’re converting from a 2 bd/1 bth to a 5 bd/3 bth.

There are four areas of focus to a buy and hold strategy: Purchase for appreciation and no cash flow; Purchase for appreciation and cash flow (this is what we all want...do this as much as possible); Purchase but receive no appreciation and little to no cash flow (worse case...don't ever do this); Purchase but no appreciation and cash flow.From your posts it sounds like you are in the situation where you are getting appreciation but no cash flow. 

The lowest risk strategy would likely be finding that B/C property in stable A/B areas.

Any tips or strategies for investing with partners because I haven't really seen much on that topic?

Thanks for this strategy.