Austin vs. Houston Rental Property Investments in 2020?

Question

Looking to purchase an investment rental property. What area should I be more concentrated on Austin or Houston?

Jodi Gauthier · Answer

@Jaime Guerra Katy TX is definitely in high demand for rent depending on the school the neighborhood is zoned to. All of my rentals are in Katy and I own a real estate brokerage there. I’m happy to give any advice or insight if needed.

Berkli Jo Boudreau · Answer

Hey @Jaime Guerra! I work with investors here in the Austin Market. I'd be happy to discuss opportunities, returns, some successful strategies I'm seeing here in Austin as we get into 2020. I'll PM you my contact info. Cheers!

Ryan Kelly · Answer

Hi Jaime, BP is a good place to start gathering info, then you will want to connect with Realtors in your target area for more specifics. Regarding Austin, you will have a difficult time finding a property inside Austin below $250k as the median price point is over $400k, so less expensive properties will likely require work and be harder to cash flow without creativity. Suburbs such as Pflugerville, Manor, Hutto, Taylor, Del Valle and Kyle will have some home options in those price points. Each are different, so it will definitely depend on your goals.

Jaime Guerra · Answer

Thanks for getting back Jordan. I am looking for a Single Family Home investment property for around $200,000-$250,000 which I can rent out for the long term to give me a modest monthly cashflow anywhere around $200-$700/month. I not all that familiar with the demand of Single Family Homes in Austin or Houston. I am from the New Jersey/New York City area where any home you buy can easily be rented out easily getting anyone back there return on their investment. Unfortunately, the housing market in the NJ/NYC area is very competitive and more expensive so I am setting my eyes around Texas. I am somewhat familiar with Katy, TX and it meets the price point I am looking for but I'm not sure if the houses are in demand for rent. So I am looking for some guidance as to what areas I should be looking at.

Jordan Moorhead · Answer

@Jaime Guerra what area do you know better, what are you looking for and what are your goals? It isn't just as simple as this is "better". Whats better for me might not be better for you.

Austin vs. Houston Rental Property Investments in 2020?

Austin vs. Houston Rental Property Investments in 2020?

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