Rental Property in Katy (77449) Agent Advised Against It
Hi guys and gals,
So I'm still looking to make my first investment purchase and have been for what seems like forever now. Katy seems to be a pretty hot market so the few offers we have put in have gone into bidding wars, and had to back-out since the numbers wouldn't make sense.
Today though, I went to look at a house with my agent. Of course the house looked a lot better in the pictures, and needs more repair work than originally budgeted for and it also looks like a mouse problem, but after revising the budget, the house still has a positive cash flow and the numbers work.
The house is in the 77449 area code and zoned to Morton Ranch, it's not the best neighborhood, but I don't think it's that bad. After looking at it and agreeing with my agent that it definitely needs more work than we thought, she advised against the house. Not because of the repair work though. Her reason was the neighborhood. The houses on the street looked dated, the wood on the exterior was rotting on most houses, but from a previous question I posted I didn't think that was a big issue or a reason to stay away for a buy and hold investment. She was concerned about the house not being rented, saying the tenants might look at the neighbors and having that scare them away. She also said their property management team doesn't really like the area, because it would rent for around 1300-1400 attracting lower quality tenants and always having to chase rent in that area.
So my question. I know there has to be some investors on here that have been land lording in this area, so I was wondering what your experience has been like in this area? Is my agent right to steer me away from this property/area, or should I just take the plunge?
I'm leaning on taking the plunge, and thought what's the worst that could happen? If she's right and it doesn't rent then I could put it back on the market and hopefully break even after updating the house. Or if she's right and I get bad tenants that are hard to manage, then I would let her team take over the property management :)
What are y'alls thoughts? Any input is appreciated, thanks!
Alex