Considering buying my first rental property in Lubbock, Texas

Member since 2022 · 5 posts · 4 votes

Hi everyone!

I'm considering buying my first rental property in Lubbock, Texas as a mid or long term rental. I did some research and saw that there is a lot of economic growth and the housing market seems reasonable for my budget. I wanted to see what other's experience has been. Thanks!

Angelica

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Stuart Chinworth

Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes

Quote from @Angelica Aurea:

Hi everyone!

Angelica

@Michael Mendez and I were actually just talking about how much we liked investing in Lubbock, so you have a biased audience here. That being said, it has proved to be a very stable market where cash flow is still obtainable.

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Michael Mendez
Real Estate Agent · Lubbock Tx · Member since 2020 · 77 posts · 44 votes
3y
Quote from @Angelica Aurea:

Hi everyone!
I'm considering buying my first rental property in Lubbock, Texas as a mid or long term rental. I did some research and saw that there is a lot of economic growth and the housing market seems reasonable for my budget. I wanted to see what other's experience has been. Thanks!
Angelica

I completely agree, I got my first property in '21 and have seen a lot of appreciation. In August our Months of Inventory was 1.9, the demand is strong here in Lubbock.
1 Reply
Stuart Chinworth
Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes
3y
Quote from @Angelica Aurea:

Hi everyone!
I'm considering buying my first rental property in Lubbock, Texas as a mid or long term rental. I did some research and saw that there is a lot of economic growth and the housing market seems reasonable for my budget. I wanted to see what other's experience has been. Thanks!
Angelica

@Michael Mendez and I were actually just talking about how much we liked investing in Lubbock, so you have a biased audience here. That being said, it has proved to be a very stable market where cash flow is still obtainable.
3 Reply
Michael Mendez
Real Estate Agent · Lubbock Tx · Member since 2020 · 77 posts · 44 votes
3y
Quote from @Stuart Chinworth:

Quote from @Angelica Aurea:

Hi everyone!
I'm considering buying my first rental property in Lubbock, Texas as a mid or long term rental. I did some research and saw that there is a lot of economic growth and the housing market seems reasonable for my budget. I wanted to see what other's experience has been. Thanks!
Angelica

@Michael Mendez and I were actually just talking about how much we liked investing in Lubbock, so you have a biased audience here. That being said, it has proved to be a very stable market where cash flow is still obtainable.

Agree, really biased, but for good reasons. The pandemic has really showed us how great Lubbock is for short and long term rentals.
0 Reply
Shaun Morgan
Rental Property Investor · Lubbock, TX · Member since 2018 · 54 posts · 30 votes
3y
My go to guy to learn anything about Lubbock real estate is @Matt Moreland . Start There! He is amazing.
1 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Angelica Aurea
I recommend you consider Houston, TX!

The cash-on-cash return and appreciation are steady.

You should select a market that will meet your investment goals.

While there are numerous benefits to long distance real estate investing, there are some potential drawbacks as well. Here are some of the most common mistakes that long distance real estate investors make:

1. Choosing a market for the wrong reasons

Instead of selecting a market for objective reasons like a strong economy and job market, investors select a city for subjective reasons such as the area being a popular spot for family vacations.

2. Accepting mediocre returns

Sometimes investors try to rationalize paying more for a property because it’s turnkey and already has tenants. Money is made in real estate investing by buying at the right price in order to maximize returns. If the returns don’t measure up, simply move on to another rental property where the numbers make sense.

3. Depending on family members

Choosing a long distance market to invest in solely because a family member lives there is another common mistake.

Long distance investors hope that relatives will become tenants to keep vacancy low or handle any property management issues that come up to reduce operating expenses. By factoring in a “family discount,” owners create unrealistic financial projections for their long distance real estate investment.

Good Luck!
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Travis TurnerBusiness Member
Real Estate Agent · Lubbock, TX · Member since 2021 · 45 posts · 28 votes
3y
Lubbock is a great market to be in. Collectively own over 60 units here in town and still looking to grow. We also run a property management company locally!
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Tomas Roberto rodriguez
Member since 2018 · 46 posts · 15 votes
3y
Local Lubbock Realtor and Investor. We love the area for various reasons. We are mostly Buy and Hold, but do some flips.
Currently my wife and I are around 50 doors, mostly single family.
We do have a small package of 4 cash flowing homes that we are looking at selling. We are transitioning from only single family to some commercial and small multi family.
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Marc Stevenson
Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 116 posts · 69 votes
3y
@Angelica Aurea Love Lubbock...go Red Raiders! My advice would be to find a reputable PM in the area and have them run rent comps "before you purchase". Most will do this for free and it won't be an inflated comp. You'll get a good idea of what the property will actually lease for, which can save you a world of hurt later. Happy Investing!
0 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Check out Killeen Texas, awesome market out here
0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Angelica Aurea
Do a thorough local market research and analyze it.
Get in touch with a local agent or investor and shorten your learning curve and save you a lot of headaches as they tend to understand the market and process better.

All the best!
[email protected]832-776-9582 Podcast Guest on Show #469
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Matt Moreland
Realtor · Lubbock, TX · Member since 2016 · 165 posts · 155 votes
3y
Thank you for the kind words, @Shaun Morgan!

@Angelica Aurea : Lubbock is still a great market to invest in. It is no longer the "hidden gem" that it was 3-4 years ago, but there are still cash flowing deals coming across the desk every week. Most great deals are of course off market, but having someone with those connections to bring you those deals will be important in any market you decide to invest in.
I primarily invest in Lubbock, but also have properties and developments in progress in several surrounding counties as well. I am much more confident in my money working hard for me in this market than any of the others that I have invested in previously, and will continue investing my own money here.
The housing market in Lubbock has been fairly stable as long as there has been data to look at. Economists have historically called it an "island market" due to its historic muted response when compared to primary and secondary market reactions to economic conditions. To give you an example, when there is a market crash or recession that hits a primary market hard, the impact on Lubbock is present but much less significant.
The housing demand is still outpacing supply, and builders are unable to build fast enough to keep up with the population growth and demand of young professionals settling down here. Historically, students from Texas Tech University have relocated to markets like Dallas/Fort Worth, Austin, San Antonio, or Houston after graduation, but we are beginning to see far more graduates staying in Lubbock to start their careers and put down roots. I have faith that the Lubbock market will continue to be a great place to park money to work for me, and am happy to hop on a call anytime to talk about it with you or anyone else interested in West Texas markets as well.
Best of luck in your investing journey, regardless of where you decide to invest!!
1 Reply
Michael Norsworthy
Realtor · Lubbock, TX · Member since 2018 · 40 posts · 18 votes
3y
Quote from @Matt Moreland:

@Angelica Aurea : Lubbock is still a great market to invest in. It is no longer the "hidden gem" that it was 3-4 years ago, but there are still cash flowing deals coming across the desk every week. Most great deals are of course off market, but having someone with those connections to bring you those deals will be important in any market you decide to invest in.

Hi Angelica!

I can vouch for both Matt Moreland and Lubbock. We recently purchased our first investment property in Lubbock and it has been a wild ride. We had the appraiser from Heck, an HVAC unit that unexpectedly needed to be replaced. But all in all, it has been a great learning experience and we aren't going to lose money when all is said and done. :)

Throughout the whole process, Matt has been by our side. He brought us the deal, advised us on how to deal with the various challenges that popped up, recommended a great GC, and soon he will help us either flip or rent the property.

Funny story, we had originally intended to BRRR the property, but then the ARV looks to be substantially more than we thought, so we may flip it. But as you know, interest rates are going up and if it becomes a hard sale, we will revert to the BRRR strategy.

Thanks in advance Matt and Best of luck, and welcome to Lubbock Angelica.
1 Reply
Melanie ThomasBusiness Member
Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
3y
Lubbock is a great option for you, yes. I would also recommend San Antonio and Austin! Happy to chat if you have any questions. Good luck and happy investing!
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Matt Moreland
Realtor · Lubbock, TX · Member since 2016 · 165 posts · 155 votes
3y
Quote from @Michael Norsworthy:

Quote from @Matt Moreland:

@Angelica Aurea : Lubbock is still a great market to invest in. It is no longer the "hidden gem" that it was 3-4 years ago, but there are still cash flowing deals coming across the desk every week. Most great deals are of course off market, but having someone with those connections to bring you those deals will be important in any market you decide to invest in.

Hi Angelica!

I can vouch for both Matt Moreland and Lubbock. We recently purchased our first investment property in Lubbock and it has been a wild ride. We had the appraiser from Heck, an HVAC unit that unexpectedly needed to be replaced. But all in all, it has been a great learning experience and we aren't going to lose money when all is said and done. :)

Throughout the whole process, Matt has been by our side. He brought us the deal, advised us on how to deal with the various challenges that popped up, recommended a great GC, and soon he will help us either flip or rent the property.

Funny story, we had originally intended to BRRR the property, but then the ARV looks to be substantially more than we thought, so we may flip it. But as you know, interest rates are going up and if it becomes a hard sale, we will revert to the BRRR strategy.

Thanks in advance Matt and Best of luck, and welcome to Lubbock Angelica.

Wow, Michael. Thank you for the very kind words! It was a pleasure working you guys to take down your first two properties, and seeing your investing journey unfold here in Lubbock.
0 Reply
Doug Hardy
Investor · New Mexico / Texas · Member since 2021 · 6 posts · 1 vote
3y
Quote from @Tomas Roberto rodriguez:

Local Lubbock Realtor and Investor. We love the area for various reasons. We are mostly Buy and Hold, but do some flips.
Currently my wife and I are around 50 doors, mostly single family.
We do have a small package of 4 cash flowing homes that we are looking at selling. We are transitioning from only single family to some commercial and small multi family.

Hey Tomas, I just sent you a PM.Congratulations on your success so far!
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