How to Pick Good Locations for Texas

Question

General question - Do you take into account of the amount and size of businesses close by to your potential  property rental investment? If so, how do you do check this quickly (best way I found is Google Map)?

General question, I know, please bear with me. When looking at properties in Texas the usual factors of looking at schools, crime, places to do, and demographics are the common areas to look at. But as an investor and to possibly protect the property from a recession period I also like to look at all the corporate and small business close which correlates to jobs and tenants paying rent consistently without issues. I looked for all of the usual websites (zillow, trulia, etc.) but didn't find an easy way to do so. Thank you for in advance or input!

Aaron Beauchamp · Answer

@Don Van Nguyen Bigger markets like Dallas, Houston, San Antonio, and Austin are great markets that are thriving. However this markets are very competitive and it can be difficult to find deals at times. I have found that there are cities like Lubbock or Waco that are huge markets for real estate, but the competition is a lot smaller. Hope this helps!

Ryan Blake · Answer

@Don Van Nguyen I would just suggest between the two, go with DFW because it is where you live unless you plan on moving. It is much easier to invest where you live and I don't think the upside potential of Houston is worth going outside of your home area. If you go somewhere in the midwest, that is a different story. You can pick up great rentals with high cash flow which would make it worth the risk of going away from your home.

Aaron Beauchamp · Answer

@Don Van Nguyen Yeah, so as a lender to investors I'm  seeing clients becoming successful with their investment properties at $210,000 and up here in Houston. Not to say there can't be deals done at less of a purchase price, but typically the most comfortable clients are in the $200K+

Don Van Nguyen · Answer

@Ryan Blake I don't think you are a minority at all! I struggle daily with focusing on Houston or DFW. Houston does take a hit during an O&G recession but it is quite robust and hangs in there during the worst times. They do have a diverse economy in terms of technology, O&G, hospitals, and universities. I think of DFW the same but not as many O&G companies and a bit more heavily toward the financial and technology sector.

Ryan Blake · Answer

@Don Van Nguyen I know that I am in the minority but with most oil and gas downturns, Houston will see a considerable contraction. Not to say all growth in Houston disappears during hard times in the oil and gas industry but it does hurt the local economy. That is the reason I stay away from there. Whenever I see an area that is dependent on one industry I become very wary. The same with Killeen/Fort Hood being solely dependent on the military.

Don Van Nguyen · Answer

@Brian Foster forgot to mention But maybe it is a preference deal. I predicted job and area menities were top fo the list, but maybe the sampling set Rice University didn't target the suburban area enough? I know for my wife and I, crime and school was one of the most important factors when we bought our primary schools.

I would counter their research by saying if I was in the 18-27 years old then yeah school would be number job and amenities will be number one. However, if I am 28-40 years old I would say the school and crime will be way up there in the top 3. I would drive 1 + hours if my child has a great school and we live in a safe neighborhood.

Don Van Nguyen · Answer

@Ronald Rohde interesting point and well stated. I'll take it into consideration, appreciate you.

Don Van Nguyen · Answer

@Khanesia Washington  thank you for the input!

Don Van Nguyen · Answer

@Aaron Beauchamp I am finding the same issue on my side. As a new investor and not a solid network (despite having Real Estate Agent representatives in each city) the deals are not just there at the moment. I'm patient and can be aggressive at the same time. A lot of the investment properties deal is at a break even, negative or barely at the $100 ish cash flow per month so for a $100k-$230k investment not worth it IMO.

I know international investors don't mind those kinds of numbers but for a first purchase, I'm a bit more patient. I can continue saving cash and wait for a deal or a reduction in pricing.

Khanesia Washington · Answer

Some local expertise could help. What you are researching is a great start. Crime rTes are important as well as accessibility to highways and shopping. PM if you have any specific questions. I would be happy to help.

How to Pick Good Locations for Texas

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