Deal Junkies, Is This a Good Deal or Not?

[Jason Fang]

Analytical junkies,

I'm looking at buying a house in a working class part of Houston, Galena Park, at a significant discount to market value but I have a reservation about a disturbing trend in its tax appraisal values.  For some reason, the tax appraisal value has been declining by 8% consistently over the last 5 years.  But if you look at the comps, the market still looks hot.  Days on Market is low and the rentals look strong.  It seems like this would be a good rental property but why would the appraisal value keep dropping?  What could be some reasons for this?  Do you think the trend would continue?

Jason