Experience with West Houston/Morton Ranch Area?

Question

Background: I've been looking around for areas just outside of the 610 loop for a single-family buy and hold.

After some searching I stumbled upon Morton Ranch and that area just east of Katy (I10 & 99). Anyone have experience investing in this area? Any particular factors to look out for?

Mark Sewell · Answer

There are still plenty of older neighborhoods in 77449 and 77084 (where I live), some flooded but most not, where you can fix up a house and add value.  Good rental area, with some newer/pricier pockets sprinkled in.  ARVs pushing right up toward the median now, so you really have to go subdivision by subdivision, or even street by street, to get a feel for which areas are rental areas and which might be better for low end flips.  Starting to notice a lot more owner financing going on out here as well.

Some areas are Katy schools, some are Cy-Fair schools.

@Tony Castronovo mentioned Williamsburg Colony -- there are a handful of these subdivisions out here, north of Bear Creek, called the Colonies.  Great area there.  Those are in 77041 mostly.

I am always looking for deals out here, so happy to get together for some coffee one of these days.

Mark Sewell · Answer

Probably doesn't matter much which of the 8 Katy HS, all of them are good and people will pay more to live there.  Katy ISD is like Bellaire or Spring Branch, in that regards.  Those are the 3 best that I am aware of, at least on this side of town.

Luciano A. · Answer

Got properties all around that area and all zoned to Katy ISD. I bought mine mostly in 2006-2010. I stopped buying there because even though they have appreciated greatly that they are too safe. You got some streets with like 5 rental signs and each is competing for same tenant base in the $1200-$1500 market. If you choose to invest in that area I would suggest looking at the new builds and see what options they are providing. Take that and use to rehab an older home in the area so that you can compete against the new builds that are being bought by out of state investors and transforming them into rentals.

Flooding is major issue as is most of Houston but best to check since alot of the homes recently built in the 99 area was considered flood zones back in the days.

Also buy 3 bedroom 2 bath not any 2 bedrooms that some areas out there have. Also at least 1200 sq ft if not bigger. DONT buy a massive house thinking that its big so more tenants would want to live in it. Some tenants will shy away because of heating/cooling cost in some of these older homes. AND the bigger the house the more rehab cost will be.

Hope this helps alittle and best of luck in your investing

Robert Seltzer · Answer

We have multiple properties in Katy.  I do not see crime as an issue as this was mentioned as a risk factor above.  Also, you can purchase outside of the 500yr flood plain and reduce your risk dramatically.  The homes cashflow; however, an investor must be prepared to pay a bit more for the property.

Tony Castronovo · Answer

Not sure what price point you are looking at. I’m pretty sure you can find properties requiring $30k rehab in the $160-180k ARV range. Have you looked in Williamsburg Colony neighborhood?

Sean Yuan · Answer

Was mostly wondering about experiences with buy and hold vs flipping.

I was looking in that area because of the lower tax rates. The other thing is that I’m looking for properties where we can add a decent amount of value (30-50k in rehab) but have mostly found an overwhelmingly amount of newer properties.

Tony Castronovo · Answer

Morton Ranch is Katy, which is a highly regarded suburb of Houston. Katy schools are highly coveted. That said, there are 8 high schools in the Katy area. Morton Ranch is not in the top echelon but considered “good”. I have not researched statistics but believe crime is rather low. Katy north of I-10 is more of a rental market. South of I-10 (e.g. Cinco Ranch) will be higher end communities (generally) and better schools.

I would buy a rental in the Morton Ranch area.

Armand Farr · Answer

@Tony Castronovo factors that would be helpful:- Upward trajectory vs areas like Cypress, Katy, etc.- Entry price point compared to other talked about areas- Other wildcards like floods and crime activity

Tony Castronovo · Answer

I've looked in this area a lot but never bought.  Most of my SFH's were in the Bear Creek, Cypress area.  Your question is rather vague so let me know if there is anything in particular you are wanting to know.

Experience with West Houston/Morton Ranch Area?

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