Houston, TX 2-4 Unit Multi-Family

[Stefan Stankovic]

Hello All. I'm an avid listener of the BiggerPockets podcast and figure I've been missing chances for good insight on the forums too, so here goes one of my first posts!

My partner and I are getting pre-approved for a 203(k) rehab loan here in Houston, TX this week and are interested in a small multi-family that needs a bit of TLC as a BRRRR investment. I'm hoping we get approved for anywhere from $250K-$400k, so we are looking at 2-4 units. I have a some questions about three separate areas:

1. Did we miss the opportunity to invest in EaDo, as I see posts from even a year or more ago saying prices were rising quickly? This seems to be the case from the searching I've done.

2. I just drove around third ward, in between Southmore and Blodgett perpendicular to Scott St., and it honestly looks kinda rough in certain parts. Talked to a couple people in front of their homes, and they called it the next Heights. I hope this is the case.

3. I'm thinking so far that my best bet might be Fifth Ward near Old Spanish Trail, only a few minutes drive from Third Ward. I like the idea of student rentals in Third and Fifth Ward, but UH and Texas Southern University are both predominantly commuter schools, so I'd hate to have units sitting for months.

I hope these questions are specific enough, and I look forward to any insight. Thanks in advance!

[Ray Lai]

Welcome to BP @Stefan Stankovic!

You Texans are friendly with each other. If someone posted this in the SD forum, they wouldn't have gotten the really fantastic responses on the specific areas like you have gotten, and also the tax/legal advice to keep you outta trouble :)

If you decide to go the direct mail route, I can hook you up with a free checklist of things to do to get ready for your campaign, scripts on how to talk to sellers, and that kinda stuff.

I hope your $203k rehab loan works out well with you and your partner!

Good luck!