First property in Gentrification Area Houston, TX
Hi BP fam!
Looking at a few homes suggested by my agent but wanted a second opinion. What is everyone's thoughts on areas of gentrification as a starter home? I'm currently residing in Houston, TX and there are plans to gentrify several areas around Houston. My agent has mentioned the East River Project on the outskirts of Downtown and that the area will be seeing some gentrification over the next decade. When I do a quick search I see a lot of new construction town homes being built in the surrounding area. After doing a bit of research I also see that the city of Houston is planning to expand and bring the surrounding areas up. My question for you would be would the area be worth considering if I plan to buy and hold over a ten year period. Rental numbers don't match the 1% rule here with townhomes ranging from 250-400+k and current comp rentals are more around 1900-2300. I will plan on living in the home for about two years then rent it out and look for my next property. From what I understand the 1% isn't a hard set rule more of a general quick analysis to see if the property is worth investing into. Should I avoid the area as its currently more industrial, with pockets of C and lower neighborhoods? Would love to hear your thoughts on this subject.