It is in a neighborhood of single family homes that recent sale have shown range from 56k to 80k, those SFR have about 500 less square footage and are much older homes.

Neighborhood is not great but definitely not a combat zone, Housing rate is about 950 for a 3 bedroom with separate utilities.

If the neighborhood is crappy, it's readily apparent.

There's a neighborhood in my area that just got the ok for a new (and quite large) park where there was a rundown block of old buildings, a parking lot, etc.

Something that interests me but I haven't read any conversation about are the pluses and minuses of buying houses that are great rentals versus houses that may be a little higher priced but will bring in a good profit in a few years.This seems like a very exciting time in real estate to me, prices are all over, forclosures across the board from the best to the worst neighborhoods, and alot of things going on in the banking and credit industries.I just closed on my first deal, a three bdrm 1 1/2 bath in a decent area.

The problem is that most investors want to be in neighborhoods in which they intend to live.

This home is actually in a nice, upscale neighborhood of westchester with nearby homes listed anywhere from $850K to over $1M.

So there is no coming correction, TX hasn't kept up with inflation.It's tough to make a go of rentals in TX due to the crazy high property taxes and homeowner's insurance-the state does not regulate the insurance industry.I can take you to some nice, upper middle class neighborhoods in the Houston metro area, where houses are selling for the same price per square foot today that they were selling for in 2000-2001.

If you looked a little harder you might find a better buy in a transitional neighborhood, and do a better ROI or even spend a bit less.

The higher class neighborhoods will start to see a substantial drop and more foreclosures start to hit the market.By the summer we will see commercial real estate drop in a huge way.That sounds pretty grim, but I still think there is money to be made and some super deals out there, just BE CAREFUL.