Are the Katy / Sugar Land areas a good investment for rental homes in the mid-200k price range?

Katy and Sugar Land are both growing areas with strong economies and job markets, which can create a high demand for rental properties. Based on the price range and specifications you provided, it is possible to find rental homes that meet your criteria in these areas.

Both Katy and Sugarland areas are good for investment if zoned in good schools. Always run rental analysis before deciding on the property and realtor can help you with comparables

I have several investors that buy in those areas because it’s very close to the 1% rule. They are able to buy at $200k and rent right at $2k. Plus it’s very volatile there right now.

Kin,

Some of the agents here are shooting you a straight answer. I am a real estate agent/investor with 7 rentals and have been a managing partner in a 318 unit apartment complex so I have a lot of experience in this area. I can tell you from my own experience that something in the mid $200K range with 35% down isn't going to cash flow $700 a month. If that was the case, I might consider adding to my current rental portfolio and I'm not doing that. The 1% rule you speak of still doesn't net you the greatest return on investment these days. As others have mentioned above, the HOA and property taxes can really eat into your cash flow. I have a spreadsheet I use to evaluate deals that I'm happy to share with you where you can play with the numbers to change up the scenarios to see what your ROI is. I just plugged in $250,000 with 35% down, a 4.25% mortgage rate (rates are higher for investors than homeowners), and $2,000 in rent. If you had ZERO repairs and ZERO vacancies, you would have about $532 a month in cash flow but that isn't anywhere near realistic. My repairs and turn costs between tenants run about 1% of the total value of the home and my vacancy rate is just a touch over 4%. Email or call me if you'd like a copy of my spreadsheet. This spreadsheet is not meant to be 100% accurate but only to give you a quick analysis of what your ROI could be. Ross@FortBendHomePros.com (281) 340-4135

Yes and other surrounding areas are great as well. The mid 200k is a good investment price range.
If you need help locating your investment properties please reach out to me. Anthony Taylor Sr. 832-819-4287
I help many investors buy properties. I'll love to help you find your next investment properties.

Thanks
Anthony Taylor Realty

Absolutely. It's exactly why I live in the Sugarland area and selected a brokerage in Katy. Investors I've worked with on rentals have great success. You may also want to consider Sienna Plantation in Missouri City (sits right next to Sugarland). Sienna also feeds into great schools.

You just need to find the house & seller that meet the criteria. 90% of these deals are not on MLS. Get a mentor or join a mentoring group for help in locating deals that work for you. This price range builds appreciation not as much cash flow. Sugar Land requires registering rent house. Yes good areas to buy.

Yes! Those are great areas to invest in rental properties. Very family friendly areas, awesome schools and plenty of amenities. I work those areas if you more information please let me know!

let's meet and talk about it ! Good is relative term..

It is difficult to find an updated home in the Katy, Sugar Land area in this price range. There is a good demand for these locations because as my colleagues have mentioned...i.e good school district. There are some new construction in the Katy area, that may be worth pursuing for less maintenance and easy rentals. I can be reached at 281 352 4712.

Ken,
I know the market very well in the areas you're interested in investing. I would love to meet you at my office in Katy to talk to you and show you on the map about the market and analyze it in details with you.

The numbers you mentioned could be a little challenging for your expected cash flow number I'll explain why if we meet I will also give you some recommendations to help you reach your goal. I have started my career with a property management company worked with investors, also I am so experienced in listing and renting investors properties as fast as possible at the highest end of the market!

Please don't hesitate to contact me at 281-210-4048
Suzette Sarekhian with REALM Professionals - Katy

I will encourage you to buy in any of these two areas. And with the increase in the interest rate, I will say that the sooner the better. The interest rate has an impact on the amount of money you pay for your mortgage, therefore, it reduces your income from the rental property.
Especially in Katy, very close to the "Energy Corridor", which receives many expatriate executives, good candidates to rent a house, as they move in with the whole family. Attractive in the area is the school district, it could not be better, not only public schools but also international ones, like The Awty International School and Alianza Eco International School.
Not to forget that many local families, will be happy to rent a home as well in the areas.

Do not hesitate to call me for futher information.
Rosa Burk

Absolutely! For Sugar Land In that price point, look in Chimneystone, & Settlers Way zoned to Clements. I work in this area quite a bit and I would be happy to discuss this with you anytime.

Sincerely,
Kristen Manz
Kristen@GreaterHoustonLiving.com
281-305-9023

I work with rental investors in sugarland and homes purchased in low 200’s has rental income between 1600-1800. 1% rent as per the sales price can be challenging in few areas. For a rental investment schools, location, communities and year of construction are the important factors. You should go through a rental CMA and have a good knowledge about new developments in the area before investing in a particular property. Due to huge demographic changes in so many areas in sugarland and Katy there is change in the rental price as well. Yes sugarland and Katy are good choices for rental investments. Few new master planned communities are also building brand new homes which meets exactly your requirements and price. Do your homework well before you invest. Good luck

I Kin,

Actually, the previous answers provided by my colleagues are not quite accurate. Your purchase price of Mid $200 is not realistic in Katy and Sugar Land and will not yield 1% ROI. Not with $700 cash flow goal.
You also have to factor in high property taxes (up to 4.2% in some areas) as well as HOA fees into your holding costs as well.
While I agree that those 2 areas are indeed sought after (my colleagues are correct about that) because of good schools, a more realistic purchase price is closer to $300K.
A house purchased for about 200K will rent for about 00-$1800 (depending on age and condition), which will yield less than 1% ROI. That is if you even find a suitable, move in ready home in that price range.
There are also other areas where you can get the 1% ROI.
Also, a good spread is important. You don’t want to put all your eggs in one basket, as that carries too much risk (even though it’s more convenient to have your all rental homes in close proximity to one another).

Thank you,
Yvonne Chauvin- REALTOR®
MCNE, CNE
Better Homes & Gardens Real Estate Gary Greene
YvonneChauvin@yvonnechauvin.com
Cell: 281-686-0143

Homes purchased at the right price and with limited repairs or improvements required could definitely cash flow from the start. These 2 areas have potential for rental investment property. I have experience as an investor and working with investors and can furnish you with info which would help you determine where to invest. Give me a call if you are interested in talking further. 281 650 8162.

Yes Katy has and will always remain an area with a high demand and fast turn over, I've never had a problem getting Katy inventory leased or sold quickly.

Excellent question; the Sugar Land and Katy area are excellent areas for rental homes, particularly because of the school districts but also because all the areas have to offer in the way of community amenities. With interest rates below 4% and a buyers market it is also an excellent time to make this investment. I would love to work with you and help you accomplish your investment and income goals. Please contact me at 713.865.1103 any time.

Hi Kin,
In my experience homes in the Katy, Tx and Sugarland, Tx zip codes are always selling pretty steadily when listed correctly. My clients have loved the schools and the neighborhoods and the proximity to a major freeway. Sugarland, Tx was also voted one of the best cities to live in per Nerdwallet a few years back and one of the best places to retire per Money Magazine.

I'm always available and ha e my phone near by.
Give me a call if you have any further questions. If you click on my name and ratings you can see some previous reviews from my residential and investor clients. Text or call me anytime.

Thanks
Eboni Taylor
Keller Williams Realty
832-453-7440

Kin,
It is important to pull rental Comparative Market Analysis-CMA to make the right decision to help answer your questions. I can give you my better judgment but having CMA will help you in the right direction.
Frederick, KWM 281-782-6845

Yes homes rent fast in Katy and SL if they are in good schools and in the mid 2,000s I would love to help you, please contact me at+17133924032