How to find a investment property while maintaining a full-time job in Houston, TX

Question

My husband and I have been looking for properties (rentals & flips) but cannot find any that fall in between the standard investment calculations. The calculations are: monthly rent/.018 and ARV*.7 . All the properties we have found are asking too much. We found these properties through wholesalers, foreclosures, and estate owned. We have everything we need except the properties.  I am willing to quit my job once we have several properties bringing in money until then what can I do to find these properties? Any advice would be appreciated!

Brian Harris · Answer

Hi Christine -

The deals closer to 70% are out there but just a little bit harder to find. Like Carlos said, wholesalers would be a good avenue of finding deals closer to the 70% mark, along with off-market deals. Is there a certain area of Houston that you are focusing on?

Thanks,

Brian Harris

Cory Boren · Answer

Christine,

The 70% of ARV strategy is great but these vary based on risk/reward and supply/demand.  The fact is that the risk free rates are so low that it causes the investor cap rate to shrink as well.  Investors are buying at 80% in the Houston market and that leaves only around a 10% ROI on each deal. If you can turn that 4 times a year to a 40% ROI you are doing great. For example; in your range of 100k I see investors waiting on that great deal at 65-70 % to profit 25k but they may or may not get that 1 deal per year. If you move to 80% you only profit 10k but you can flip 4 deals per year =40k. The more deals you do the greater competitive advantage you can create.  The market can turn quickly so be prepared to change your buying criteria quickly.  Rentals are keys to success and flipping just creates you a job.

Invest Often,

Cory Boren

The Information is provided for information purposes only. The Information is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you.

Christine Baldwin · Answer

@Brian Harris

We are looking around the south side of Houston which includes: Missouri City, Rosharon, Manvel, Alvin, Pearland, Pasadena, Deer Park, La Porte, and small towns adjacent to these.

Christine Baldwin · Answer

Thank you all for your responses. We are flexible in our criteria but have focused on SF 3/2/1 ARV in the 100s. We would also love to invest in multi-units as rental properties. We are open to most anything if the numbers are right.

@Aaron Montague

We get daily e-mails from realtor.com . MLS listings that are investment worthy are all bank owned and we are having trouble with getting them to contact us back. We keep at it but they seem to have no interest in dealing with us even though we can meet their cash only requirement.

@Steve Rozenberg

We are members of a local realtor club and they have helped to provide alternative funding solutions but haven't helped with finding the properties. We are going to up our membership level so we can connect further on a 1 on 1 basis.

Sayo Owoseni · Answer

I am based in Houston and I'm a Keller Williams real estate agent here as well as an aspiring investor. Let's connect, hopefully we can work together eventually. I got my license recently so I can learn more about the investor world and real estate so we can definitely learn from each other. Houston has an organization called. R.I.C.H. (The Real Estate Investment Club of Houston) and also Houston Real Estate Investing Association.

Fred Heller · Answer

Hi Christine,

I would be happy to look around for you. I help investors like you find properties and I can tell you the deals are out there. Just PM me your contact info so we can discuss your criteria. Thanks

Steve Rozenberg · Answer

Best thing to do is surround yourself with a solid local team. Leverage their local knowledge and expertise and use the team mentality to succeed.

This holds true in any market you are looking to become successful in. 50-60% of all of our clients do not live in Texas and many not even in the country, the continue to buy and invest because the see value in team and leverage

Carlos Rovira · Answer

The best deals you will probably find are most likely from wholesalers. I live in a very tough market (Miami/S. Florida). Real estate is VERY expensive and the cap rates are very low. Most of the value-add deals I get are through wholesalers. They just require you to be more creative as most wholesalers prefer cash buyers and the properties usually require a lot of rehab.

Aaron Montague · Answer

@Christine Baldwin

Welcome to BP!!

I was just poking around Houston for someone else.  There are lots of properties scattered around the city that would make good investments from what I've seen at first glance.

Have you been on Realtor.com?  Despite what you may have heard/read, there are plenty of good deals on the MLS.

Besides your numbers, which I believe is the right place to start, what are the rest of your criteria?

How to find a investment property while maintaining a full-time job in Houston, TX

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