Silverlake investment property? (Houston, Pearland, Katy: real estate, rental market, house)

[htownguy]

Hi all,
I've done alot of research, but I was wondering what you all thought of the buying investment property in Silverlake/Pearland.

Pros
Master planned community
Good schools
closer to Med Center/Downtown than Katy/Sugarland
low taxes
low HOA
Rents are cheaper than Shadowcreek
Tight rental market?
not a flood zone?

Cons
Traffic
Traffic
lower appreciation

Seems like there are very few rental properties in Silverlake. I might be able to pick up a property slightly below appraised value and cash flow a few hundred bucks a year after all expenses.
However, our AGI is over 100k some deductions would be phased out.

So all in all, a good idea?
Thanks in advance!

[CanTex]

If you're only going to generate a few hundred $s in free cash each year but are still interested in this, you must be thinking the property values are going to be where you get your big return on investment.

I personally don't see renting suburban homes in the Houston area being the best investment option. As soon as pricing starts to strengthen, we have so much area to build on and capacity for new construction that builders will be quick to ramp up their output. It wasn't all that long ago that we were seeing 50,000 housing starts a year in the area. I think investments in the central areas could be a lot more lucrative (but perhaps outside your price range).

[EasilyAmused]

Residental real estate is hit and miss even in the most desired neighborhoods.
Buying out in suburbs where they cotinue to build isn't an investment. A home maybe, but not an investment.

Investments homes would be in close proximity to TMC,Downtown,Galleria or the EC. Places that're built out and have no where else to expand but up. YOu may want to check into areas on the near east side that are revitalizing and returning to great neighborhood status.

[htownguy]

Thanks for the responses..
oops. i meant this property would cash flow ~ $300 a month after all expenses.

I've always been interested in real estate but I'm on the fence with this deal. I've been looking in the central MLS area for quite a few months now.. we can afford something here, but running the numbers, on paper, it's been hard to find a deal on a property which would cash flow monthly much at all, which makes me wonder if it's even worth it.

higher appreciation = higher taxes = lower margins..
sigh, maybe I should just stick with REITs and other investments?

[baggiegenes]

given the current market and the fact that you may have to hold onto this house for a few years. I wouldn't buy it unless it cashflows a few hundred dollars every month. There are too many other decent deals out there to buy one that won't generate that much of an anual return on your investment.