Cap rate, cap rate, cap rate. There is so much focus on cap rates that investors are missing solid opportunities for no other reason than that they aren't familiar with Austin. Let's just put it in plain and simple language. If you are looking for a high cap rate, you are NOT going to be satisfied with the location of the property or the tenant base. Write that down on a sticky note and put it somewhere so that you have to keep reading it.
A mediocre market is a stagnant market with low appreciation. Demand drives appreciation. Stagnant markets have no demand. There is no real reason for the rents to increase except to meet the cost of operation or to adjust for inflation.
The only properties I recommend and personally buy, have to meet that "good…
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