Houston Market place

7 Replies

I'm looking into the Houston market place for buy and hold. Is it better to focus on properties with better school district ratings, or get much cheaper properties in areas where the school district doesn't rank as high?

Any feedback would be greatly appreciated. 

Both can be good strategies.  It depends on your goals, neighborhoods, etc.

Cheaper areas could have less reliable tenants whereas good school districts tend to bring in longer term tenants.  However, it can be harder to bring in cash flow in a nice home in a good school district because better school districts usually have higher property taxes and higher property values.  The right cheap area could be ripe for development and appreciation compared to a more stable neighborhood., but as always it will depend on how good the deal is.

Thanks so much for the insight. I'm weighing up for options but see it from both ways. I know LA so well and understand it but not so familiar with Houston and really like the look of Texas market place. 

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The school district game is a tough one in Houston. Are you looking burbs or city?

Lots of inner city kids busing across the district in magnet programs or in private schools. It’s confusing even for someone with kids in school here. 

Originally posted by @Jo Kinal:

I'm looking into the Houston market place for buy and hold. Is it better to focus on properties with better school district ratings, or get much cheaper properties in areas where the school district doesn't rank as high?

Any feedback would be greatly appreciated. 

My thoughts are this:  I'm not living there and sending my kids to whatever school it services.  The school quality is already baked into the home and rent price.  So all I care about is the financials.   If a property is $200k and rents for $1500 because it's in a good school.  And another costs $100k and rents for $1200 because it's not in as good of a school, I'll take the bad school as the financials are better.\

If two properties have the same financials, then use the school to determine which one to get.  But most often that's baked in. 

Thanks Ryan. Right now I'm looking at the Suburbs not inner city but obviously weighing both possibilities. All I hear from my friends who are parents is school rating, school rating, school rating so I'm deciding if that is the way to judge the properties although the numbers are always the top priority.  thanks for responding, it is greatly appreciated. 

I agree with Cody.  Katy schools, Spring Branch/Memorial and Bellaire are known as good schools in this area.  I am sure there are others, no disrespect intended to any local alums : )  But the market has already factored in the 'good schools' aspect.