Investing in Lubbock, TX

[Juhi Jain]

Hi,

This is my first post.  Looking to invest in Lubbock, TX. My understanding is that there is enough housing for the students and there is more of a demand for duplexes and Single Family rentals. 

My questions are:

1)  Is it better to buy a SF home or a Duplex? I believe the Cash flow is better on a duplex than on a SF home. There seems to be a decent supply of duplexes on the market. Is there an oversupply or just that the supply is there to meet the growing demand. 

2) Between the two school district which is a better bet - Frenship or Cooper?

3) Between Foxridge and Bushland communities which is a better bet in terms of ease of renting and better cash flow.

These deductions are solely based on my research online. I may be completely wrong in my deductions. I would greatly appreciate some inputs. 

Thanks,

Juhi

[Matt Moreland]

Hi, Juhi, and welcome to BiggerPockets!

1) I would not say that one is better than the other, it just depends on what deals present themselves and which ones meet your investment criteria. Some SF rentals will inevitably cash flow more than a duplex and vice versa. As far as students vs. non-students, the student body at Texas Tech is growing quickly, in addition to the large quantity of businesses and families moving into town. If you're fine renting to either, then you're set either way. 

There is a decent supply of duplexes on the market, I agree. A lot of them are brand new construction and of high quality. Some of the duplexes in Bushland as well as over just outside of Foxridge are selling for high-200s low-300s and leasing for $1500-1650 per side. The builders are continuing as long as demand is there, which doesn't seem to be slowing down.

2) Either way, you're looking at more expensive properties and higher rents. Both are highly-desired school districts--Cooper being the well-known one with some older neighborhoods and Frenship being further out where more of the brand new homes are being built. 

3) I've actually been out to look at duplexes in both Foxridge and Bushland in the past few weeks, and they're selling and leasing fairly quickly. Can't go wrong either way, both are new construction and very well done. I'm a huge fan of the Artistry Homes builds, and it seems everyone else is too with how much traffic they're getting. In Frenship school district and just a quick jaunt away from anywhere one might need to go.

Good luck in your investing, and glad you're looking at Lubbock!

Best,
Matt