Some real estate agents are dismayed that the days of easy money investment buyers have slowed down significantly from their highs in 2005 and 2006. And though we´d be disingenuous if we suggested we weren´t delighted that some clients were willing to buy multiple properties sight unseen over the phone during that period, we are glad to see that a sense of normalcy has returned to the investment market.

Of course, in some circles, there is still a euphoric expectation of returns, with some investors believing Austin is next in line for an equity explosion.

We feel this is the wrong approach to real estate investment, and we are very explicit in telling our customers, "please do not buy real estate in Austin if:"

• You expect to flip the property for a profit in less than a year (or for that matter less than 3 years)
• You expect to buy property with little or no money down
• You expect to generate positive cash flow every month with little hassle and little down