SFH Thoughts on Finding a Property

[Robert Hsu]

Hello everyone!

I'm looking for my first investment property in the Houston area—since I live here, I'd like to keep it close. Right now, I'm torn between:

1. New Caney – Strongest cash flow (though never guaranteed), but it may have less appreciation as the years go by
2. Conroe – Likely less cash flow but better appreciation. I also like the idea of a buying new build and possibly using the builder’s loan for a lower interest rate. My thought process is that I'm not sure how easy it is to rent out as well.
3. Katy – Higher appreciation potential but near the top of my budget and may not cash flow well. However, the strong school system is a draw, as families often gravitate toward better districts

I think I'm mostly worried about the home not being able to rent out and being stuck with the mortgage for X amount of months. Just looking at Zillow and the number other rental properties in the area can be intimidating. 

Any advice or insights would be greatly appreciated!

And yes I did use chatgpt to clean it up a little :P

[Carl Millsap]

@Robert Hsu, I don't know those markets but what I can share is:

1. What is your goal? Do you want cashflow, do you need the tax benefits to offset your W-2 income or do you want to cash-out when / if it appreciates? 

I invest for cashflow, I take the appreciation as it comes. 

Each approach has it benefits, you can have them all but let the one that is most important to you drive the decision. Know your numbers whichever option you chose...weigh the pros and cons of each. 

2. Can you carry a mortgage on any property for 2-3 months if it doesn't rent? Just my experience but I'll let a unit sit vacant before I put the wrong person in it. Which leads to #3.

3. As you're looking to buy, research / develop your screening process now. Don't wait until you buy a house and have the mortgage hanging over you to try and figure out how you'll screen people. This is a business....trust me I learned this the hard way.

4. There are a couple hundred thousand people in the Houston area, all you need is 1. Don't let the number of houses available deter you. Some people / realtors / property managers keep units on Zillow etc. just to have leads coming in.

Hope this helps.