Can’t seem to find deals in Houston, TX

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Can’t seem to find deals in Houston, TX

Cristian Galvan
New to Real Estate · Atascocita/ Houston, TX · Member since 2019 · 4 posts · 1 vote

I have some money saved up but I can’t seem to find any deals that even meet the 1% rule let alone cash flowing. Seems like houses are just going left and right and only houses that seem to be reasonable are areas I’m not too comfortable buying in. Market seems pretty hot so I don’t know if I should wait or buy now to get in

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Randall Re II
Rental Property Investor · Colorado Florida Arizona Texas, Nevada and Ohio. · Member since 2020 · 116 posts · 58 votes
5y

Try a different market. I started out in the Sarasota market and people were literally paying an extra 100k for a property (I'm not doing that), so I moved to another market and in my first 2 days, I made 3 offers because its so much better. Dont give up, just find a different market to work with that fits your financial goals. 

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  • Randall Re II
    Rental Property Investor · Colorado Florida Arizona Texas, Nevada and Ohio. · Member since 2020 · 116 posts · 58 votes
    5y

    Try a different market. I started out in the Sarasota market and people were literally paying an extra 100k for a property (I'm not doing that), so I moved to another market and in my first 2 days, I made 3 offers because its so much better. Dont give up, just find a different market to work with that fits your financial goals. 

    2Reply
  • Sandy Sawyer
    Realtor · Houston, TX · Member since 2017 · 177 posts · 68 votes
    5y

    I know what you mean. I'm in SW Houston. As a Realtor I can scan the MLS every day, and I'm on many wholesale buyer lists. But the feeding frenzy is surreal! All my deals have been when people called me directly wanting to sell their house. It's hard to apply the 1% rule around here. I think you have to just crunch the numbers for real and see if you think it will cash flow. Be sure to leave a little wiggle room in the event rents start to drop or vacancies rise.

    2Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Cristian Galvan Most Real Estate Markets are very hot now. 1% rule is still possible in some parts of Houston, you just have to be ready and be able to move fast.

    Refine your criteria and you should find a deal soon either on MLS or off-MLS.

    Goodluck and reach out if you need help.

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    1Reply
  • Shahriar Khan
    Investor · Houston, TX · Member since 2010 · 234 posts · 145 votes
    5y

    @Randall Re II they are still out there and requires a lot of work and being specialized for what you are looking for ( zip code/type/finance readiness etc) agree with @Sandy Sawyer and add that if you are an investor spend ZERO time on MLS scanning. MLS are working as Robinhood traders (dont want to get into my soapbox for now) Try wholesale route which is a very slippery slope and you need to 100% confident to make offers on same day ..

    On a diff note, i think your premises of 1% need to the updated as it will depend on where you go (equity vs appreciation aka heights  vs sunny side ) . 

    Overall keep at it and you will get it, market seems to be opening up for investors as high end job lay offs are happening now till Feb and we are seeing some profit realization from Houston..

    1Reply
  • Matthew Rolf
    Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
    5y

    @Cristian Galvan are you open to a light rehab?  Or are you strictly looking turnkey?  If you are willing to do cosmetic updates the ability to get 1% rule is definitely doable now.

    0Reply
  • Cristian Galvan
    OP
    New to Real Estate · Atascocita/ Houston, TX · Member since 2019 · 4 posts · 1 vote
    5y

    @Matthew Rolf I was looking for a turnkey property in my area. Still a little nervous if I do find the property I am looking for especially with all the uncertainty going on at this point in time

    0Reply
  • Cristian Galvan
    OP
    New to Real Estate · Atascocita/ Houston, TX · Member since 2019 · 4 posts · 1 vote
    5y

    And I apologize for not replying I’m still trying to figure out how to work this forum. It’s my first post on here

    0Reply
  • Matthew Rolf
    Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
    5y

    @Cristian Galvan yeah I get it for sure.  The best thing on the buyers side right now is the low interest rate.  Overtime, you'd assume rent rates will increase faster than your taxes and insurance (and your property will likely grow into and past a 1% rule property).  

    0Reply
  • Lionel Mosby Jr
    Real Estate Agent · Houston, TX · Member since 2020 · 107 posts · 32 votes
    5y
    Originally posted by @Cristian Galvan:

    @Matthew Rolf I was looking for a turnkey property in my area. Still a little nervous if I do find the property I am looking for especially with all the uncertainty going on at this point in time

    What type of financing are you looking to use for the property you want to acquire? All cash? Hard money? Traditional bank loan?

    0Reply
  • Cristian Galvan
    OP
    New to Real Estate · Atascocita/ Houston, TX · Member since 2019 · 4 posts · 1 vote
    5y

    @Lionel Mosby Jr I was going to get a conventional loan and use it as a primary for the first year

    0Reply
  • Andrew Q.
    Rental Property Investor · Houston, TX · Member since 2018 · 15 posts · 9 votes
    5y

    There are good deals out there but they need varying levels of renovation.  Identify your criteria, set your budget, and get a preapproval letter from a lender so you're ready to offer immediately when you do find something.  

    I would suggest targeting homes that need cosmetic upgrades or are just outdated, slowly work through those while you're there, and do a little house hacking by renting out rooms as soon as possible. 

    1Reply
  • Cole Britting
    Investor · NH · Member since 2020 · 175 posts · 75 votes
    5y

    Like a lot of the people above me have said, it is really important to narrow down your criteria, especially in a hot market. That way when a deal comes that fits it, you know exactly how much you can offer on the spot in order to still make your numbers work.

    There are always other markets too, and there are a ton of books and resources on BP for out of state investing. 

    If you are house hacking, you can try different ways of running your numbers. For example, maybe you start thinking about renting by the room. Or maybe you find a property that has a basement or ADU that you live in, and you can rent out the rest of the house to a family. Or maybe you buy a camper, park it in the driveway, and rent out the entire house. There are so many ways to be creative in house hacking, just make sure the numbers work when you move out.

    Best of luck!

    0Reply
  • Herbert Ash
    Spring, TX · Member since 2016 · 12 posts · 0 votes
    5y

    @Cristian Galvan try myhousedeals.com look through there you might find what you are looking for

    0Reply
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