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Justin Nupp
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Best areas to invest

Justin Nupp
Posted

Looking for some recommendations on areas outside of Houston to invest in. We  are looking for a long-term hold that we would stay in when are we come in town often.

We have been to Katy, TX and like that area, but want to see what everybody recommends that invests down there

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Chris Seveney
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  • VA
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Chris Seveney
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ModeratorReplied
Quote from @Justin Nupp:

Looking for some recommendations on areas outside of Houston to invest in. We  are looking for a long-term hold that we would stay in when are we come in town often.

We have been to Katy, TX and like that area, but want to see what everybody recommends that invests down there

This is one of the most common questions on here, but there's rarely a single "best" area. The right market depends on your goals, budget, investing experience, financing, risk tolerance, and whether you're optimizing for cash flow, appreciation, or a place you'll also use when you're in town.

I'd encourage you to start by defining your criteria and then researching markets that fit those goals instead of looking for a one-size-fits-all answer.

As an example, even within Katy the numbers tell different stories. In some neighborhoods, rents are essentially flat while in others they're down around 4%. Interestingly, where rents are down 4%, home prices are only down about 2%, while some areas with flat rents have seen prices decline closer to 4%. Those differences can change the investment opportunity depending on what you're trying to accomplish.

Since you also want a property you'll stay in when visiting, factors like proximity to the airport, amenities, and neighborhoods you actually enjoy may be just as important as rental metrics.

I'd suggest narrowing your search criteria first, then comparing a handful of submarkets instead of asking for a single "best" area. You'll likely end up with a much better investment that fits your specific goals. There is plenty of data out there online on where to grab this data as well.

  • Chris Seveney
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