Houston Market

[Jeff Garrett]

I am looking for some feedback from individuals who are active in the Houston market. I have been investing in DFW for a couple of years and since the market has gotten a bit overheated here we are looking to Houston. I'm originally from Houston and have quite a bit of familiarity with the area but after reaching out to a buddy of mine who is a broker he suggested that I focus on properties inside the loop. 

Typically I've looked at post 2000 builds 3/2/2 in the $100-150k range that will cash flow $250-300 per door. Most of the success I've had with this criteria has been in the suburbs. Any thoughts on the burbs versus the loop and where should I be focusing? Also for those who are active in the market how has the oil price crash impacted prices. Would love to hear from and pick the brains of active investors. Thanks all.

[Fred Heller]

@Jeff Garrett   By all means, concentrate on inside the Loop if you would like to buy properties where there is no hope of seeing any cash flow. Today I can help you get your hands on one of these in the Loop gems that are currently on the market.

How about a duplex in Montrose that generates $3100 in rent per month? Asking price is $575,000.

And then there's the 4plex in Montrose that generates about $3000 a month in rent. They're only asking $635,000 for that. Oh, and the tax bill is $11,000 per year.

If you prefer the Heights, you can pick up a 3 plex that generates a whopping $6000 a month in revenue for the low, low price of $930,000. Tax bill on this beauty in $23,000.

My favorite is the rundown 8 unit complex in the Heights that generates $3200 in rents. Asking price is $1,000,000. But the value is in the land.

I concentrated on multifamily properties because that's what my investor clients are generally looking for. But SFHs inside the Loop are similarly inflated. The average price of every SFH on the market in Montrose today is $836.000.

All kidding aside, I tell my clients to stay as far away from the Loop as they can. The numbers just don't make sense. 

Based on what you want, the perfect places for you to find something are the Katy area (north of I-10), Cy-Fair, and Bear Creek. These areas have great schools, post-2000 construction, high rental demand, and in your price range.

If I can assist you in acquiring properties here, please feel free to PM me or contact me at my email or phone number on my profile.

Good luck!