Simple question. should i just wait until i bake the Houdini asset in UE4 to texture? or should i texture + Materials in Houdini ?

I would say it depends on your intended workflow. Right now we have fairly limited support of Houdini materials. Assigning UE materials to a baked object should always work. I believe assigning UE materials to Houdini asset object and then baking should preserve materials as well, but this has not been tested thoroughly.

Thanks!