I've been perusing the real estate ads in Austin. We're thinking of buying a condo or small house for David to live in while he's at UT doing his PhD work. He'll be there for another 5 years, and the cost of the mortgage on a place would be close to what he's paying in rent right now. If we can find a two or three bedroom, he could even rent one room out to a classmate, if he wants. That would help pay at least half the monthly cost!
The inlaws offered the asking price which is completely in line with the market. The sellers did well with it as an investment. They paid about 40K less for it 6 mos ago. They're a newlywed couple trying to get into a house.
If you do your homework, condos can be an excellent investment.