Safest areas to invest in real estate (Houston, Bellaire: foreclosures, leasing)

[bronstew]

Just wondering if anyone knows where the best places might be in Houston to invest in real estate? Are inner loop areas like the Heights and Bellaire the safest bets? Where can you be pretty sure to get a return?

[City Love]

That's a difficult question to answer because it has many variables to consider.

1. What's the budget you have for investments?
2. Is your plan to buy and sell, or buy and lease?
3. Are you trying to obtain a mixture of appreciation and rents? Or just the highest return on leases?
4. Are you an in town investor or out of town?

Plenty of things to consider before someone with knowledge can answer. I've worked with many investors and real estate isn't a one size for all kind of thing.

If you are looking for a relatively good return on leases, you can purchase foreclosures in the suburbs for $70-$90k, and then rent them out for $1100-$1400.

[MikeyAusmus]

The Heights, Bellaire, West University Place, Southside Place, Montrose, Midtown, River Oaks, Upper Kirby, Rice Village area, Museum District are all safe bets inside the loop.

[bronstew]

Thanks. We are selling up in the UK and looking to reinvest in Houston. I would like to be able to retain our initial investment and possibly make a bit more. Our budget is about $400-500K. Not leasing or anything, just hoping not to lose money if we decide to sell up and move on after a few years.

[crbcrbrgv]

Originally Posted by MikeyAusmus

The Heights, Bellaire, West University Place, Southside Place, Montrose, Midtown, River Oaks, Upper Kirby, Rice Village area, Museum District are all safe bets inside the loop.

You don't think some of these areas have hit their upper limits?

I've found Houston real estate to be too stagnant for investing.

[Lost_In_Translation]

Originally Posted by bronstew

Thanks. We are selling up in the UK and looking to reinvest in Houston. I would like to be able to retain our initial investment and possibly make a bit more. Our budget is about $400-500K. Not leasing or anything, just hoping not to lose money if we decide to sell up and move on after a few years.

Narrow down where you want to live (where are you commuting to) and from there we can help more effectively where is the best area to buy in.

[heightsian]

What about the upside on Eastwood? If the sole goal is investment, then there could be some opportunity there.

But if you're looking for an area that is "move-in" ready and less transitional, then the other areas people suggested are better. I don't think you would lose money on the investment provided you bought the right property, but you shouldn't expect a lot of appreciation. However, I do think inner loop properties have more upside than those outside, especially once you start looking past Beltway 8, when you still have opportunity for new construction.

The Heights is clearly the best place to live inside the loop ;-)