College Station for rental - yay or nay?

[Lucy Nguyen]

Hi. I'm new to investing and College Station caught my interest. After doing a lot of research, I'm getting close to sign a contract for a new build (4bd/3ba) in the Creek Meadow area. However, I'm starting to get a 'change of heart'. I started noticing MLS homes in CS have cut prices. Also noticed on the same street where I'm about to get a new build have rentals that's been sitting there for a while.

My questions are:

-are the price cuts in CS area and longer time on market for rent a sign that this is not the market for me to get into?
-Is airbnb a demand if LTR not a demand?
-Would 4bd/3ba more desirable to rent vs the other 3/2?
-How desirable is Creek Meadow area for rental? There's just a lot of new build so I'm assuming there's not a lot of demand for rental?
-Any tips? advice? Do I back out?

Thanks for all the help!

[David Wolkoff]

Lucy,

  I would need to know the numbers to say, and whether this is a cash deal or mortgaged.

I had looked at College Station myself, but concluded that it does not pencil out.

I own a SF house in an upscale area of McAllen, TX and a quadplex nearby.

So far, TX has been my worst market - property taxes just ruin the cash-flow.  

Overall, the state is quite overpriced, mostly due to the Texas hype.

Based on your description, I would guess you are looking at a purchase price of $325K and rental of $2000 or so.  Those numbers would cause me to run away, and fast.

But maybe I am way off.

These days, it is hard to make a new build pencil out as a rental in most markets.

But there are some that still can work, just not in TX.