Rental rates not catching up with appreciation/property taxes
Hello!
I have a SFR just off Mopac in North Austin. It is rented out and managed by a property management company since I live out-of-state. Purchased in 2014, the property has appreciated by 25%, so the property taxes have increased significantly but the rental rates have been flat. With a mortgage, this property is now cash-flow negative.
The new Apple HQ will be 15 minutes away, thus I think this property is positioned well for further appreciation. I would like to hold on to it for the potential long-term appreciation, and the only way I can think of to mitigate the cash-flow problem would be to pay it down and get rid of the mortgage, generating 5-7% return for now until the property taxes rise again.
Looking for advice here and suggestions. Also, Austin experts, why has the rental rates been flat in the area? What is the issue with the rental market? Also, what is the general investing strategy in Austin, considering the property taxes are not capped?
Thank you in advance.