All Forum Posts by: Account Closed

@Tony Ma I agree, and from the statistics I've seen, about 28% of all houses are rented with only a 4% vacancy rate http://www.bestplaces.net/housing/city/texas/katy. It seems like there's not a lot of competition for rentals in that area and they rent quickly.

@David Dye Yes, this would be my first property and I would need to hire a property manager if I were to invest in Texas.

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!

@Anson Lau I'm currently reading 'The Millionaire Real Estate Investor'. It's a pretty decent book and a one stop shop for both leadership and real estate knowledge.

@Kevin Crosson Great analysis! I agree with a lot of your points, but I also want to remind you that most of South LA is under rent control, which limits your ability to raise rents or change tenants. Good luck with your investment!