TX and CO single/multifamily rentals investment good or bad?

Question

Hi all, I live in New York and am looking for an investment property out of state. I am mostly interested in single or multifamily rentals and am currently looking in Texas(Houston, Dallas, Austin) and Colorado(mostly Denver and Boulder area). Are these markets good to invest in right now? Are there any other market recommendations?

Ryan Kelly · Answer

@Ashish Yadav Before you pick markets, I think you should better define your criteria first. Do you want a certain amount of cash flow? Do you need a market with stronger appreciation? How much is your budget? Once you figure out your "buy box", then it makes it much easier for you to select markets. I hope this helps!

Wale Lawal · Answer

Houston market is super HOT right now. There are several benefits why any savvy investor will like to consider Houston for their Real Estate Investment. I have been living in Houston for 7-years and I personally invest only in the Houston areas and I have been helping other investors to invest in Greater Houston and surrounding cities as well. As a Realtor and Investor myself, below are a few reasons why my clients and myself invest in Houston, Texas:1. Houston is #1 market in the United States for Job CreationContrary to what the majority of out of state investors believe, Houston not only have Oil & Gas (Energy), Houston has other job growth in Consulting, Information Technology, Aerospace & Aviation, Medical treatment and Research, Goods Distribution, and Manufacturing. The port of Houston on the Gulf of Mexico imports more goods than any other port in the United States.Texas legislation has provided a great economy for businesses to thrive. Big and small companies alike have chosen Houston for the location of their corporate headquarters.2. 4th largest city in the US - This has increased the housing demand in the Houston areas and landlords are enjoying low vacancy and a rent increase. Even during this COVID-19 Pandemic. I am living proof.3. 5%-20% below current fair market value - This is gradually changing and the market is very hot right now. Nevertheless, Houston is still a relatively cheap and better use of cash on cash return. Some parts of Houston are seeing around 15% returns consistently.4. 3-year appreciation forecast of 12.5% - We are able to enjoy both appreciation and consistent cash flow.5. Houston is very diversified and friendly so people like it here. Our food, people and culture is what people like about Houston6. The majority also enjoy the weather here. Houston checks all boxes for me and my investor clients both in-state and out of state investors. After Houston, I will recommend San Antonio, Texas. Goodluck!

Steve K. · Answer

Incredible.

Chris Freeburg · Answer

I actively invest in Denver and plan to continue to do so.4 of the top 5 cities in the most recent US News 25 Best Places to Live in are in Colorado:1. Boulder 2. Denver 4. Colorado Springs 5. Ft. Collinshttps://realestate.usnews.com/...

Tyler Bains · Answer

I am in Lubbock, Texas so I always recommend Lubbock! You can find great deals here both SFR and Multi-family. Message me if you have questions.

John Morgan · Answer

I’m in DFW and this area has been on fire. Lots of job growth driving prices and demand up. And a huge demand for rentals.

Pia Sikes · Answer

@Ashish Yadav Hello, Houston, TX. The combination of affordable housing and jobs are couple of the reasons people to move in Houston everyday. Good Luck!

Jarrod Covey · Answer

With four of the top eight MSAs in the nation (Houston, San Antonio, DFW, Austin) in terms of improved or bettered job growth, GDP, and unemployment since 2010; you can find an investment that matches your financial goal @Ashish Yadev

Mason Moreland · Answer

You can find great deals anywhere in Texas, but like @Tyler Bains said, Lubbock and other secondary/tertiary markets with growth opportunity probably offer the highest returns, most appreciation upside, and lower barriers to entry. Having also been in Colorado, I can say I prefer Texas as the regulatory environment (even on the local level) is MUCH less restrictive. Sure makes life for you and your tenant less complex. DFW, HOU, and ATX are great, if you can find a great deal, but the barrier to entry is higher (higher prices, wayyy more competition for deals). It's like only looking at SanFran, LA, San Diego in California or NYC neighborhoods in New York.Good luck!

Trampas Tanklage · Answer

@Ashish Yadav San Antonio is a great market to invest in if you haven't considered it already. Significantly lower prices compared to other cities in Texas (especially Austin 60 miles up the road), strong employment base (big military town), and some high-appreciating areas. Reach out to me if you're interested!