Buy And Hold - New Contructions

[Thomas Garza]

I am considering purchasing a new home as a buy and hold investment in an up and coming area of Houston. The house would cost between 200k and 230k, and the rent for would be between 1600-2000 respectively. There are a few reasons I am considering this:

1. The property is experiencing a boom as people move further and further out of the city.
2. The property is in a great school district. 
3. The property taxes are almost half of what they would be in the other parts of the city I normally purchase in ($2k vs $4k)
4. The new house theoretically will have a considerably lower cap x cost than the 30-60 year old homes I normally look at. 

There are a couple things that I'm not sure about though:

1. The house doesn't meet the 1% rule (it will after my down payment, but not before)
2. This neighborhood has a decent number of other rental properties in it already. I don't know if this is good or bad.  

Any advice would be appreciated.