Investing in Houston

[Brian Burke]

I’m looking to purchase 4-6 single family homes (or a small multi family) in Houston, probably for mid to long term holds. As I am from out of state (Orange County, CA) and have been studying the overall market, I’m interested if anyone has opinions on good submarkets for renters. I’ve been looking in the energy corridor to the west, Spring near Exxon, and to the south in good school districts and near the Medical Center.

My main concerns are buying where there is saturated supply (I’ve steered clear of Houston proper) and buying somewhere in which people generally buy homes that lacks a good renter pool. I’d say I’m looking for properties all along the “B” class spectrum that will attract some middle class families and perhaps white collar millenials who haven’t saved enough to buy.

Any thoughts are appreciated. Thanks. 

[Account Closed]

Millenials generally want to live inside the 610 loop. Many don't like to drive and they want to have access to everything. They want to be able to Uber, bike, walk, or ride the Metro rail to places where things are happening. Also, they tend to be more open minded about living in historically socio-demographicially disadvantaged areas in order to have better access to the city. Of course, I'm only speaking from what I know of the Millenials in my family and friends circle. None of them are "white collar," per-se.

One of my investing goals is to improve living conditions in parts of inner city Houston by re-positioning some of our cool old 1930s housing stock to accommodate class-B tenants, particularly Millenials and retiring Boomers. 

I have been considering looking more closely into getting a SFH near one of the the University locations south of the city and renting it by the room. I have family in the suburbs south of Houston whom I visit frequently and I know the region very well.

When you refer to a Medical Center to the south, are you eyeing Pearland or Bay Area/Clear Lake? 

I'm going to send you a Colleague Request. @Brian Burke