Paragon is excited to announce that we have expanded our home rehab portfolio to Houston, Texas! Why are we so bullish on this market? There are a few key metrics that explain why. First and foremost, we seek out markets that have a combination of high rents relative to property values, have steady population growth, a diversified economy, and linear growth in property values over time. Houston is currently the 4th largest city in the US and is growing in population by about 1.3% per year.

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In other major cities in the US, it is hard to find areas where investment makes sense from a cash flow perspective, or in other words the rent to price ratios are high enough to easily support positive cash flow on rental properties after accounting for all expenses. However, Houston has consistently remaining in the top 25 US markets for cash flow, with the rent to price ratio around 9%