Any opinion on the market in Houston for multi-family investing?

[Varouj Asdourian]

Hi. So I am looking into investing in a multi-family property in Texas and I am looking at both the Dallas metro area and Houston markets.  In my research it appears that the Dallas area may be for popular and prices are a bit higher but the rents appear to be average.  The Houston area seems to have a bit more inventory with somewhat lower prices and the rents appear to be about the same, resulting in greater cash flow.  I am looking at a 4plex in the Stafford area, which is a suburb of Houston.  Price is good and great rate of return as well.  I am just wondering if anyone can give me any insight on the market in Houston for long term investing.  How is the economy doing? Is job growth stable? I am looking at this as a long term investment and any insight you can give me would be appreciated.

Thanks.

[Hayden Harrington]

Stafford / Missouri City is a fantastic area. I'd stick to the suburbs of Houston and you should be able to find some great opportunities. Pearland, Missouri City, Richmond, Katy, Jersey Village, Cypress, Tomball, The Woodlands (from here originally), Humble, etc are all great areas. I am based in Dallas and bought two MF deals in Houston last year because the pricing and competition up here in Dallas is so intense. Whatever you end up pulling the trigger on, just make sure to drive it and really understand what you're getting into. 

There are great schools down there in the suburbs and it is very affordable for new families. There is also a lot of great healthcare as well, so I'd try and focus on areas that check those two boxes so you can have a strong tenant base. Markets like Baytown, Pasadena, LaPorte, etc are very dependent on oil & gas so they tend to be a little more volatile. 

Good luck!