Return/areas to aim for in Houston
I've been reading Houston threads on this forum for a while trying to see what kind of return rates to expect in Houston. It seemed like 1.3% is doable for rent/price ratio, and some recommend trying to get 1.4%. Talking to an agent in the area, however, she stated that the current ratios are much lower, an example she gave me barely meets 1%, something I would be able to get with a turnkey provider anyway (although it's probably the area I'm paying a premium for).
Could Houston investors advise what kind of return ratio I should be aiming for in today's market? Are there certain areas you recommend for better returns with good tenants? I was advised to stay north of Houston. Spring seems to be a good area, although it sounds like it already appreciated quite a bit, what are some alternatives? Are there nearby areas that would be better for cashflow? I'm not too picky about age of property, do you recommend expanding my search to include older properties, if so, how old? Here in MA it's typical to see 80+ year old properties, it seems like in Houston people don't look at things older than 1980.
Thanks