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Updated about 8 years ago on . Most recent reply
Choosing between Fresno, CA and Katy, TX to invest
Good evening fellow BiggerPockets members! I've spent the last month researching different neighborhoods to invest in and have narrowed down my options to these two cities. I'm having a hard time choosing between the two and would love your opinion on the subject.
Katy, TX: A small city on the outskirts of Houston. It's incredibly appealing as I am able to purchase a good quality house for a decent price (~$250k) in a good neighborhood (mostly 9 or 10 star schools). Investing in this area means I'll get a higher quality tenant, possibly one that works in Houston and commutes. Since more tech companies are moving to Houston, I can see Houston and all suburbs around it appreciate over the next few years. Investing in Katy will make me an out of state landlord and carries heavy property taxes (~2.5%).
Fresno, CA: A large city in the center of California. They recently obtained a contract to start building the high speed rail station, which will attract a lot of people for work. It's only 2 hours away from where I live so I will be able to check on the property any day I like. I can also use my real estate license to buy my own house for some more synergy (save on commission). Fresno is not known for good appreciation or good cash flow and has higher than average crime rates than the rest of the US (although this can be mitigated by investing in the good parts of the city).
I don't have friends or family in either of these locations, but they are the most appealing to me. Do you guys have any thoughts on either of these two cities?
I appreciate all of your help and look forward to reading your comments! Thanks!
Most Popular Reply
@Account Closed North Fresno (north of Herndon) is part of the Clovis school district, which is very good. This area, as well as Clovis has less crime than much of Fresno. The HSR may be helpful, but it's many years down the road. I would encourage you to seriously consider having your first rental close by so you can learn from the experience.