Thoughts of investing in south Texas?

Question

Interested in hearing the pros and cons of investing in the Lone Star State

Amir Khan · Answer

@Victoria Moreno I have a property in Rio Grande Valley and have a little experience:

Pros: a lot of different types of inventory available. Lots of small multifamily and value add opportunity. Great prices and high cap rates. Great deals are available every day.

Cons: This area has the lowest income per capita compared most other large metropolitan Texas areas (Dallas, Austin, Houston, San Antonio). Rents are generally lower compared to other large Texan cities.

Polo Vazquez · Answer

I agree with everthing Amir said. I will add:Pros: -Lots of people rent here in the The Rio Grande Valley leading to low vacancies-More cash flow.

-Low cost of living meaning if there is a recession, people move to places like this.

- Although poverty levels are high, we actually get a lot of money from people with money moving from Mexico to the US offsetting this a bit.

Cons:
- Not very many qualified tenants. Financial education is low.
- Appreciation is good but not as good as the big cities.

Thoughts of investing in south Texas?

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