Where to buy house for investment? (Houston, Pearland: middle-class, for sale, foreclosures)

[kupa]

We want to buy a house in Houston or surrounding areas under $150,000. We want to live in it for a few years and then rent it out and eventually sell it when there's enough equity in the house. Both my wife and I work downtown. Should I look for something within Houston (possibly Great Uptown) or should I look for something in the burbs (Pearland?) Where can I make the best possible investment on a home?

[Txgal33]

Not sure that is the best way to go in this economy. All the financial advisors are saying DO NOT buy a house as an investment these days but just to live in.

[hulksmashpunyhumans]

rtflmao

no, seriously dude ... their recession isnt your recession, right? thats what rush limbaugh said, right? HAR had a video about how awesome the sales are and how awesome the numbers are looking too, right? oh yeah, thats gotta be an objective and unvested institution, right?

we got an ass-ton of people moving here cuz this is the last vestage of any jobs in the country, right? that must mean demand is up across the industrial market, right? hell, with this being a tax funded sanctuary haven for illegal immigrants, and this flood of incoming people, many being highly educated, that dont have work yet, looking for work in a poly-saturated market ... why that must mean wages will stay the same or even increase for skilled or high-end jobs too, right?

no seriously dude ... buy a niiiiice house. actually, buy two! i would suggest nothing less than luxurious million dollar deals or more ... and do a 0% down, no tax/no interest on them both as well

[desertsun41]

Don't listen to the Realtor, listen to TexGal. The words house and investment are no longer found in any dictionary or encyclopedia and likely will not in our life times. Have ya heard? We are in the deepest DEPRESSION since 1928 and still falling. People love to point out how Texas is doing better then the rest of the country. There is some truth to that, maybe a lot of truth, but how many of us are in oil and gas industry? The unemployment rate among construction professionals is above 60%. Not very encouraging.

At this time buying a home or putting money into major remodels is about as dumb as sticking your head into a Tigers mouth. We learned not to toss money into a depreciating asset way back in Finance 101. You probably can't go wrong in the very very expensive areas of Houston or if you buy water front but you ain't gonna find that for $150K.

All the experts are now saying it's cheaper to rent. I still laugh at those who buy a home and brag they just bought a house for $150K that sold for $250K a few years ago. I tell them yea great but in a year or two that home you just paid $150K for will be worth $100K. Next round of foreclosures please!

Good luck. You're going to need it.

[Danbo1957]

The only way to "make money" in housing today, is to do a tear down and build new in a well-heeled, established neighboorhood. Or, you buy a house in a new, middle-class neighborhood and hold on to it for 8-10 years before selling. The days of any house's value doubling after five years is over. There are too many houses for sale, in every price range, and not enough qualified buyers.

As far as buying a house for $150,000... look to the fast growing burbs to the west and south: Katy, Sugarland, and as mentioned, Pearland. My cousin bought a house in Katy in 2009 for $165,000 and expects it to go up in value moderately over the next ten years or so. Areas like Cinco Ranch, Conroe, and Humble, may be out of your price range, but you can look...

[Oskar_Z28]

What about buying rental property?

[t-a-k]

Originally Posted by Oskar_Z28

What about buying rental property?

There is plenty of opportunity for rental property in Houston. It depends on what you're criteria is, how much cash you have to purchase and/or do the rehab. If you've never purchased rental property and have never researched purchasing and owning rental property, I suggest you do that before you jump in and buy without knowing. (But do buy, eventually, if it's for you...)

This is probably not the best forum to get information on rental/investment property information or advice.

It's very easy to make money with rental property in houston if you know what you're doing.

what i *wouldn't* do is buy a $150k house to live in and the try to rent out later. yeah, it would work out great if you bought in the energy corridor 10 years ago for $150k and were renting now... but do you want to guess at the where the next "up and coming" might be?

buy cheap and rent at market.
3/2/2 will rent for $1100 all over the city. buy a foreclosure for $70k or less, fix it up for $5k, rent for $1100... rinse... repeat.

[piyf]

Detroit