First Property Rental

[David Pulido]

Howdy,

Shopping for our (wife and I) first property rental. Wish us luck! Not sure if we should purchase in a high end zip code (Houston) where houses are mid  $300K, or if we should buy in Temple or Waco area where homes are around low to mid $200Ks. If we buy the $200s property we may be able to purchase a second rental a lot sooner than if we purchase the more expensive property. Looks like the more expensive property is ready to move in and the rent will be higher. Thank you for your time and feedback. 

[Patrick Pendley]

I have about 160 rent house in Waco and another 40 in Groesbeck, mostly lower end. I manage for another 200 or so, in Waco, Ft worth area, Austin. I think any area can do well if you buy right etc. Waco is a great Market for rentals as well as Temple. If you find some property in the low to mid 200's in Waco that is rent ready then you are looking harder than I am. The prices here are CRAZY right now! I have low-mid range stuff, I do like that it spreads out my liability. If I own 4 50k houses and 1 is empty then I have a 25% vacancy rate. If I have one 200k house and it is empty then my vacancy rat is 100%. Something to consider. Best of luck to you.