What is the best area in Houston to own a rental?

[Matt C.]

A few days ago I was talking to a friend about rental properties in Houston and we were debating where is the best area to own a SFR. Obviously most rental properties are great at the right price, but specifics aside what does the BP community think? Considering cost, crime and chance of vandalism, schools and property tax rates, rent to cost ratio, and value forecasting, there's so many variables that it was hard for us to have enough holistic knowledge to make an educated guess. I was leaning to Cypress because it's moderate, but he was arguing for the Heights because of sustained demand inside the loop and high rent prices/quality tenants.

For those of you who are experiences in buy and hold in the area, where would you like to be in if you had your choice? 

[David Edgerton]

Such a hard question to answer, but I'll just try and get this started. An area that is very much under the radar is Deer Park. Great economy and highly rated small school district. That smell out there, it's the smell of money! Not a lot of competition for rentals (unlike Spring, Cypress, Katy and Alief) and no huge REIT apartment complexes. So rents are very strong and lease up very quick. Many older homes that are perfect for a nice rehab. Sit back and cash flow for many years to come.