Houston we have a problem

[Joe Kim]

I'm curious how other investors are feeling about Houston and Texas markets.

Currently in my small to medium size portfolio of 9 properties over 5 states, I'm most worried about my Houston and texas properties.

#1 Had my first eviction in Houston early this year

#2 Every single of my houston (3) and 4 total texas properties had lease end and had to find new tenants which is highly costly.

#3 Rents seem to have flattened in houston market

#4 terrible storms with associated damage

#5 exorbitant rises in real estate tax especially in Houston...as much as $220/month increase in tax expenses for a tiny 100K home eating away my cash flow.

#6 Had negative cash flow for the 2015 year in 2 out of 4 texas properties.

Right now, I'm not a fan of texas at all.   I'm holding on to these properties largely because I'm so tired, I cannot bear the stress of selling at this point.  As long as I can get tenants in place, I will hold on until I can regain the will to cut my losses and move onto different markets.

Now, for those watching to get in -  I bet Houston especially will have some discounted deals in the next 1-3 years from now.

I finally get how you wholesalers get deals from "motivated" sellers.  I'm starting to feel motivated.