Would you invest in high growth area alongside new construction?

[Steven Ellington]

New investor in West Texas. Big fan of the blog, podcast and the forums. Extremely helpful in learning the ropes.

I need help narrowing down my farm area. I have decided Lubbock is where I want to invest in single family long term rentals. However, there are several markets within Lubbock and I can't figure out which will provide better long-term cash flow and appreciation.

1. Student rentals: Over 40,000 college students in the area so lots of demand, however seems like a very "efficient market" i.e. savvy sellers, lots of supply and of course student tenants. Also, older houses.

2. Rapidly growing suburbs with good public schools: The southwest part of town has booming population growth, tons of new retail and great schools. However, there is new home construction on what seems like every corner and undeveloped farmland as far as the eye can see. Will there be appreciation if new supply is imminent?

3. Older, more established neighborhoods: Land-locked so no new supply is coming but demographics seem to be slowly shifting and schools are going downhill.