Any class B areas in Houston where you can get 1% Rent/value?

[Account Closed]

I am from Houston but the market has changed A LOT in the past few years since I left. I am looking for non flood prone areas where I can achieve at least 1% of the market value of the property in rent. Any suggestions on which areas and neighborhoods to focus on? 

[Cody L.]

There are lots.  I bought a 10 unit in Montrose (which I'd call an "a" area) last year for $815k.  Rents for $1k/door so over 100% rule (to be fair, I put in about $100k but I'm still over the 1% rule).  I bought a 12 unit last year in 3rd ward (which is an area I'd strongly put int he "B" camp if just for the fact its smack in the path of progress).  I paid $51k/door which seems outragous next to what I had been paying a few years before ($20k range).  But they rent for $750/door so well over 1%

TLDR: Tons of options. Just gotta look man. If you're looking at SFH it'll be harder and you may need to stick to burbs like Katy and Sugraland -- yuck (IMO)