Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Texas Real Estate Q&A Discussion Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

Account Closed
  • Sunnyvale, CA
21
Votes |
71
Posts

Odessa and Midland

Account Closed
  • Sunnyvale, CA
Posted

I've been doing research in to various cities, and it seems like these two keep popping up as growing areas with a strong rental market. I read some news articles and I understand that it may be due to the oil boom. My question is whether you think this is sustainable for a long-term investment. I'm looking for a buy-and-hold SFR property. I think based on many indicators, these towns could be great investment areas. Job growth, income growth, low vacancy, etc. Pretty much everything looks good except property taxes. Local investors, what can you tell me?

Most Popular Reply

User Stats

283
Posts
179
Votes
Logan Turner
  • Rental Property Investor
  • Dallas, TX
179
Votes |
283
Posts
Logan Turner
  • Rental Property Investor
  • Dallas, TX
Replied

Hey Christopher,

I'm originally from Sacramento and currently live in Midland. I have 2 rental properties and looking to close on my 3rd this week. I think its a fabulous place for buy and hold for two reasons. 1. the rent to gross price is very high compared to most places in the country. For example, i have a house i purchased for 42k, put 12k into it and have it rented out for 1125/mo. (house is now valued at 90k). 


My other property is a 3/2 1300 sq feet valued at 130k and rents for $1575.

So rent is strong and were in a down market from oil. Now real estate tends to lag behind oil about a year so its possible these prices come down a bit as the supply goes up from people leaving. 
However, when the boom was happening these places would have rented for 500-800 more per month. 

Reason number 2: when, and no one knows when, the oil does come back up, rent prices will increase and housing prices will see a spike in value. So you have an appreciation play as well. 

Texas is a very safe market which slightly outpaces inflation. It is not a cyclical market like Cali, vegas, Phoenix etc. However, here it is cyclical but it is also affordable enough to where you can cash flow off of it. If it does go up great, if not, well no biggie, still making great cash flow.

If you have any questions let me know. But I'm very bullish on this market as a mid term investment of 3-8 years. 

Loading replies...