@Linda PhamAll our midterm rentals are in Colorado as are our clients, so I don't know Houston's market.

UNTIL YOU SELL THE PROPERTY... then the cap goes away and you are taxed on the fair market value of the house which is usually the new sales price less maybe 15%.  

Why ask: A mentor who is actively involved in the market is more likely to offer relevant, real-time insights, strategies, and lessons learned.

on the one hand, if you're happy with it, and you believe in this market, and this is what you wanted, great. the fact that you're asking the question shows that you're being thoughtful about it.with that said, it sounds like you're into the deal for almost $90K out of pocket, and so if you asked me if i would put $90K of my hard earned cash into a property to get $175 month, the answer is no. 

Luckily the market had moved in his favor so he was able to sell and didn’t lose that much money.

The property was in a great market but needed a full cosmetic rehab and basement finish to add a bedroom and increase resale value.

With that said Phoenix had one of the highest home price declines in the last market down turn.  

@Lauren MerendinoI strongly believe that your chosen market should be somewhere that you can go to in person / have strong personal knowledge of / have family or a network in already.  

Personally, I invest in properties in C-Class neighborhoods in my market (East Linden and Southern Hilltop), and they’ve been cash-flowing well so far.

I've heard great things about the Columbus market.