Houston Rentals with property appreciation

[Sam Ajouz]

I am new to the Houston market, looking into areas where rental and property valuation is strong or has good outlook 2-5 years from now.

I have looked at this article for guide on where to invest, but open to ideas please:

https://www.chron.com/business/real-estate/article/10-Houston-master-planned-communities-make-12476521.php#photo-14795771

ofcourse taking into consideration areas where hurricanes might be an issue.  Prefer newer houses 3-5 years old?

[Tamara Deering]

@Sam Ajouz

I think you are missing @Adam D Rinehart's point.  It will take 10 to 15 years for the properties in a development to stop depreciating.  These communities build in phases and the builders typically offer incentives to new buyers and effectively sell the new houses below market.  If the market softens at all the houses are bought by investors who rent the properties barely covering their mortgage payments if they cash flow at all.  You are looking at the wrong end of a good business proposition there is too much supply and not enough demand for rental properties in a planned community.

If you truly want to invest for appreciation you need to be looking at properties inside the inner loop in Houston.  These properties are going to be older but the demand is high and will only get higher as the commutes get longer from all of these people buying in the master planned communities and driving into the city for work.  If you are concerned about the maintenance or repair costs of an older property consider buying condos, the exterior big ticket items are covered by the association not individual owners.  If you go this route make sure you carefully review the association budget and reserves before you purchase.