I was looking at housing in the area, but all the cheap stuff is of course in undesirable areas and probably not worth the risk.

If the developers and funds holding these companies did decide to drop prices to sell some inventory, it could have an undesirable effect on the market. 

That's not because I don't like high returns...I (along with most investors and tenants) don't like undesirable properties.

Also, the gas heat supplies the entire house and is not split by unit, so I would probably end up paying the entire heating bill (very undesirable for me).I am considering replacing the current gas heat with electric baseboard heat.

I'm very aware of how there are pockets of undesirables in the inner metro.  

The same reason all regulations are in place; to stop or limit a socially undesirable activity.I have taken to grabbing signs when I see them, and tossing them in one of my dumpsters.

@Henry Tse, I'd say generally to focus on the peripheral sides of Austin - East or South.

Emotionally undesirable solution is to sell of the current home (killing off PITI & PMI) which will have positive impact on the DTI. 

These always fail because the homes are in such undesirable areas... we can't even rent them.My recommendation would be to check out the United Northwest district on the near west side of Indianapolis.

The properties available were all located near downtown but in undesirable areas and expensive.