Investor commentary
Houston favors cash-flow investors. Inside-the-Loop B-class properties are the sweet spot for stable tenancy.
How to interpret Houston's rental yield
A 7.3% rental yield in Houston compares favorably to coastal gateway markets (typically 4–5%) and signals meaningful month-one cash flow potential. Always underwrite with the property's actual taxes and insurance — both can swing materially in this state.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 7% vacancy as baseline; stress to 10% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.