Looking for first buy and hold rental in the Houston area

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Looking for first buy and hold rental in the Houston area

Phiroze Neville Divecha
Member since 2020 · 3 posts · 0 votes

Hey BP community! First post here..I've been soaking up all this community has to offer for a few months, but a bit hesitant to reach out to ask for help. I'm jumping in. I'm going to buy my first buy and hold single family home this year, but a little unsure of how to move forward.

I've spoken to 3 lenders, narrowed down my price range, and what I'm looking for in a house, but am unsure of what area to look at. Right now I am looking all around Houston, but it's a bit daunting.

I've analyzed around 50 properties, but not sure how to narrow down the search since right now I'm just kinda looking everywhere.

Should I be narrowing down a zip code or 2, or just looking more generally?

Any and all feedback is welcome! Tell me I'm doing this all ***-backwards if needed - here to learn.

Thanks in advance.

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Toby Auer
Member since 2020 · 27 posts · 9 votes
5y

I am in the same scenario, you beat me to the post for advise. I have a realtor that gave me a few recommendations on areas in Houston to invest in, so today I went to those areas to find out the zip codes. Then from there I used the BP insights to get rent estimate for those zip codes. Out of those 3 recommended areas I saw that for 3 bed 2 bath, 77018 gets the highest rent, followed by 77009, then 77051. Those aren't the same order for a 2 bed 1 bath. I am trying to narrow my search so I am going with the 3/2. I am fairly new to real estate as well, so I am excited to hear what other responses you get.

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  • Toby Auer
    Member since 2020 · 27 posts · 9 votes
    5y

    I am in the same scenario, you beat me to the post for advise. I have a realtor that gave me a few recommendations on areas in Houston to invest in, so today I went to those areas to find out the zip codes. Then from there I used the BP insights to get rent estimate for those zip codes. Out of those 3 recommended areas I saw that for 3 bed 2 bath, 77018 gets the highest rent, followed by 77009, then 77051. Those aren't the same order for a 2 bed 1 bath. I am trying to narrow my search so I am going with the 3/2. I am fairly new to real estate as well, so I am excited to hear what other responses you get.

    1Reply
  • Phiroze Neville Divecha
    OP
    Member since 2020 · 3 posts · 0 votes
    5y

    @Toby Auer great to hear man. Tons of valuable information on here and people willing to help.

    Are you also looking at long-term buy and hold?

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  • Toby Auer
    Member since 2020 · 27 posts · 9 votes
    5y

    @Phiroze Neville Divecha

    Yeah I am. I just bought my second in California, but now I’m looking to venture out to Houston since I might be moving there a little over a year from now.

    1Reply
  • Mark Brown
    Contractor · Webster, TX · Member since 2016 · 94 posts · 75 votes
    5y

    @Phiroze Neville Divecha. Well, ideally you’d want to maximize the return on your investment by buying a property with the highest rent with the lowest purchase price. It’s all about trade offs. Follow that to its extreme and you’re buying properties in the worst part of town. On paper the rents look good but you pay for it with evictions, tenant turnovers, and excessive maintenance costs. So if I was starting over as a newbie investor, I’d seriously consider brand new starter homes in the suburbs. Everything is under warranty. And it’s new so maintenance costs are super low. You get better tenants. The area is usually appreciating in value. The cost to purchase can be higher but the goal is to break even on cash flow but the depreciation deductions on your tax returns saves you money that way.

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  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Being an investor in Houston for the past 20 years I can tell you that it's the landscape has definitely changed. What I would suggest is make sure you know exactly what it is you're looking for and what the goal is before you start buying I know this because I made the mistake of not doing this when I first started and I ended up with about 40 properties that was the wrong properties in the wrong area

    There are definitely some great networking events as well as very helpful if you reach out to them here in the Houston market stop

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Phiroze Neville Divecha I will suggest you identify a local rockstar Investor Agent. 

    I called this type of Agent and ON-FIRE Agent. They will make your like easier and same you from costly mistakes as @Steve Rozenberg mentioned.

    ON-FIRE Agent mean they are:

    O - Organize (The Investor-Agent must be well-organized)

    N - Network (The Investor-Agent must be well network with other Real Estate professionals like Lenders, Appraisers, Property Managers, Inspectors, Insurance Agent, Contractors, etc)

    F - Focus (The Investor-Agent MUST Focus on YOU)

    I - Investor/Investment-Savvy (MUST be INVESTMENT SAVVY)

    R - Responsive (Must Be responsive and answer your call/text)

    E - Experience (Must be an investor or have experience working with investors)

    You can find one under Network ->Real Estate Agent here: https://www.biggerpockets.com/...

    Goodluck

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y
    Originally posted by @Toby Auer:

    @Phiroze Neville Divecha

    Yeah I am. I just bought my second in California, but now I’m looking to venture out to Houston since I might be moving there a little over a year from now.

    Great move. Welcome to Houston in advance 

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
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