Should I invest in subdivisions within master planned communities

[Robert Allen Lin]

Most of my searching efforts were primarily focused within the loop in better neighborhoods. Problem is, most of these investments are negative cash flowing assets. Given the uncertainty in asset and debt markets, I'd like to err on the side of safety in good locations with above median income levels. 

If I look to areas that fulfill these criteria, such as Katy, Pearland, Spring, Humble, etc. I mostly find cookie cutter/deed restricted homes with HOAs. Downsides are the added costs, limited ability to force value through renovations, and lower appreciation due to mass production. On the flipside, these areas are experiencing population and income growth and are desirable places to live. Am I weighting cash flow too heavily when inflation may contribute more to appreciation?

Would love to hear thoughts regarding this specific asset class and how others may be viewing investments in today's market.

[Nancy Truong]

I've seen similar scenarios where investors have opt for either side. If you take the negative cash flow method and put faith into appreciation be prepared for a long time haul. Reason being is the future is unpredictable. While there's some forecasting that can help you, the future is uncertain especially with a potential recession, new federal and state laws changing, interest rate changing, etc. I've seen this work out in some investors favor, however, it's not for everyone. Can you dish out X amount of money w/o cash flow for a while? That's your call.

On the other side, having cash flow readily available will help build your nest. 

The Houston market is still growing, with multiple economic drives and has one of the high rental markets. So you have that. 

Me personally, I need some sort of cash flow because chances are, money will dry up quicker for me if I'm in the negative for a while.