Oil & Gas Crash + COVID19…Is the Houston market tapped out?

[Jessica Chidi]

Hello Bigger Pockets! 

I'm a newish REI in Houston, Texas and I'm actively looking to partner up on my first multi family investment property. I'm a full time mechanical engineer in oil & gas, and with the recent downturn in the industry I've become even more committed to pursuing a career in real estate investing. I did my first deal at 23 (house hacked) but I've decided to bypass the SF phase and jump straight to Multi Family. I'm looking for a buy and hold B/C grade rental (16+ units) with good cash flow. Some value add opportunities would be great, but no total rehabs.

I’m familiar with the Texas market so I’d prefer to stay local, but with the complete decimation of one of our strongest industries (oil and gas), is Houston still as strong a market as it once was? Houston has a historically robust job market (o&g, medical, tech…) but the environment we’re in now is unprecedented. Should I pass on Houston and look out of city/state for my first MF deal?

I’m working from home supporting international assets so my days are free for researching, webinars, analyzing deals etc. I have the time and capital to invest, just looking for the right connections to push me over the edge! Additionally COVID has slightly complicated things- face to face networking is pretty much out of the question for now, but I’m hoping the Bigger Pockets forum can help me virtually connect with like minded investors, commercial brokers, and property managers!

Thanks, Jess

[Cody L.]

I make my decisions based on a larger picture.  If I thought COVID was going to be here forever and we were never going above $20/brl oil, I'd sell all my properties and retire.   But while the world might be on pause now, it wont' be in a few months.  Or 6 months.  or 12 months. At some point we'll look at this time in the rear view mirror.

Events like this always seem bad while your in them but (IMO) it's foolish to make investment decisions which are long term by nature, based on short term events.