Is Houston, TX a good place for buying rental properties

[Ali Al-Khafaji]

Hello All - I am new here as a member, but I've been watching Bigger Pockets videos on YouTube for quite some time. I am very interested in Rental Properties and know that the Midwest is one of the best areas to do so, but I am wondering if Houston offers the same? Thank you!

[Blaine Gerick]

Hi Ali, in my opinion, Houston offers more appreciation than the Midwest with lower cash flow (lower cap rates). Of course, if you get a good off-market deal and rehab it, you can get some nice cash flow. When looking at properties in Houston, make sure you check the tax rate and know your home insurance cost. Both of these can kill a deal when compared to the Midwest. Good luck and don't forget about ADUs or Opportunity Zones.