(New to Houston) Museum District House Hack

[Landon Wright]

Howdy all,

I am moving into Houston from a neighboring state. I am considering purchasing a 700k home in the museum district (I am cash heavy rn). This purchase will be 5% down @ 2.7% and will not significantly reduce my cash on hand. The rents would cover PITI but that is about it.

I am curious how people view the value proposition in this area over the next 5 years. The owner selling now will see 9%/annum appreciation since 2013 if I purchase at list. Would I be able to expect at least 2%/annum over the next 5 years? 

Appreciate any advise for a newbie. This will be my first home purchase and slightly misaligned with my investing goals; however, I have saved cash and see a owner-occupy as a good initial opportunity. 

LW 

[Stanley Ezeadi]

Hey Landon, 

700k seems like quite a big step for a first house hack/investment. Museum district has probably the highest demand no doubt about it and seeing a 2% appreciation sounds pretty average. But can you cover the mortgage without roommates? Can it atleast break even/cash flow as a regular rental? 
If so, and this is where you want to live then pull the trigger. But I’m with @Holly Brown pick an area that is gentrifying inside 610. Maybe 300-400k instead. Holly where’s your house hack?