Anybody have experience investing in Lubbock, Tx?

Question

I am looking to purchase a multi-family rental property (duplex most likely) for a buy and hold position that will cash flow well. I want to keep it under $200K for a B or higher property, which of course limits my locations. I currently live in Denver and the Colorado market is really not feasible for this. I'm from Dallas and have tons of connections there, but that market has been overheated for awhile and multi-family properties are extremely difficult to find. We have a family cotton farm in Ralls, Tx which is just outside Lubbock, and my grandparents and mom are from Lubbock. Although they have all passed now, I still feel a connection to the area. After doing some research, it looks like job growth, industry diversity, and population growth are all strong in the area. Prices are reasonable and looks like they would cash flow. Taxes are on the lower end for Texas. What am I missing? I can't find much if any discussion on BP for this area. Any thoughts from anyone who has considered this location or works/lives/invests in this area? I would welcome any feedback!

Cassi Justiz · Answer

I am originally from Lubbock but live in OKC now.
I still have my former SFH residence there that is a rental property. It's been a full time rental since 2015. I've been super happy with it. It's a decent B+ area with good schools. It doesn't attract the college student crowd which I'm 100% fine with. We've had 2 different sets of families live there and they've both been fantastic renters.
I haven't pursued buying any additional property in Lubbock because it just isn't practical for me right now, but I wouldn't hesitate if I found a really good cash flowing deal.

Reach out to @Jordan Sutherland, I know he works with investors in the Lubbock market.

Maamun Danmaisoro · Answer

@Catherine Peters

You’re right Catherine, the Lubbock market is very stable with steady returns, and a growing economy. Rentals perform very well because of the college kids, medical professionals, and other people that work in Midland/Odessa that prefer to live in a Lubbock. I am a wholesaler here and we get solid deals to our buyers all the time. And a lot of turnkey rentals with good tenants in them as well. My number is 8063927635. Feel free to reach out to me if you’d like to know more about the market.

Joan Brown · Answer

So far what the other contributors say is in line with my experience in Lubbock. Solid rental market, steadily growing economy, minimal, but steady appreciation.

I have about 13 rental properties, am a realtor, do rehabs, and am building new construction duplexes and townhomes. I am finishing a set of four townhomes on the ever expanding north west side of town that are in the 150 to 160k range. Buying lots now for small multifamily construction. We build our properties with rentals in mind -meaning solid construction with hard surface flooring, tile backsplashes and shower surrounds, wood window casement, and everything we know from experience that helps with maintenance down the road.

New construction duplexes may be an option for you. They are turnkey and will be low maintenance for at least 10 years. Rehab properties are an option if you have a trusted contractor and can check in on the project periodically. I have talked with investors who have never set foot in their rehabs and only saw pictures of work that had be an done. That's a recipe for disaster, and almost always is a disaster.

Stuart Chinworth · Answer

@Ren Ellis did a great job of summing up the LBK market. Personally, I have not found many duplexes in town that are under $200K with good cash-flow. We have had success with SFR's and a four-plex we own. Please reach out if you want to discuss in more details.

Ren Ellis · Answer

@Catherine Peters

I can attest to the Lubbock market as well.  I currently live outside of Fort Worth but am from the Lubbock area originally.   I travel there for work and family fairly often.  I have an apartment complex and duplex there currently and am actively looking for my next property there.  I have a mix of students and families as renters.   Strong rental market as others have mentioned.  Lubbock is the "Hub" for a large area of people.  It is a lot bigger than people think.  Tons of growth in the area over the last 10 years and a very diverse and steady economy.  Education, Healthcare, Financial Institutions, Agriculture and Oil & Gas are all driving forces.  It has been very steady for us with consistent growth.

Rohit Mittal · Answer

@Catherine Peters I agree with you that Lubbock is a good market to invest in. Shoot me a message and we can chat. We run around 50 homes around the city that are great for investments.

Stuart Chinworth · Answer

I agree with @Cassi Justiz. When we orgionally started investing in Lubbock, it was with the intent of renting to college students. I will take anyone who meets the criteria and can pay.

Also, she is spot on about @Jordan Sutherland. He would be a great local resource and already works with a lot of out of town investors.

Jason Hirko · Answer

@Elo Omavuezi we do a lot of financing in Lubbock. It is a great market for cashflow with the University being the main driver. Appreciation is more stagnant, but this market has a lot of lower end houses in poor condition, so the BRRRRR method is a lot easier to accomplish in some of the more popular markets in the state

Elo Omavuezi · Answer

@Catherine Peters. I am looking to invest in Lubbock in a 6 units MFH. Wanted to get your experience so far if you did finally move forward with your investment in Lubbock? Thanks

Anybody have experience investing in Lubbock, Tx?

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