For 2 main reasons:
1. Appreciation potential is small in general (no zoning and endless land supply is a big problem)
2. Property tax and insurance cost high - which makes carrying cost high
So it is weak on both sides of the RE investment coin.
It's doable, but there are better places.
In a city like Houston, look for more central locations, such as within the loop or near the loop, close to major employment centers (memorial, medical center, upper town) AND the best school areas near the loops, because these areas allievate problem #1 mentioned above, which makes appreciation potential better. But you pay for what you get. At these nicer areas, the properties are much more expensive - can match that of the coastal states. As a rental, your ratio will not be much better than the expensive states.
