Flipping in Houston Market

[Rebecca Palermo]

I've been mostly focussed on rental properties that don't need a ton of work to turn around and rent out, but recently I've been thinking about flipping houses to bring in enough money to keep pursuing my rental interests. Funding...you know how that goes! Flippers, how do you pick neighborhoods here in Houston? I feel like most houses I see are only listed for maybe 30k under the other houses near them that have already been updated. I've been looking more at North Houston areas, but I think I may need to expand my search. Any advice?

[Charles Watkins]

@Rebecca Palermo

Hey Rebecca, I've been sourcing flip properties for investors for over two years now, and in this current market it's more difficult than normal to find a decent flip property on the MLS. The inventory is just so low. If your main method of sourcing deals is the MLS I would definitely recommend expanding your search. A wider net can catch more fish! As far as the what neighborhoods to target, generally speaking you want places that have good appreciation year-over-year with a high price cap. Areas like Spring, Sugarland, Katy, Memorial City, Pearland, the Woodlands, Jersey City are some examples. Locations where the houses have a low price cap like Sunnyside, Kashmir Gardens, Baytown, and some areas in Missouri City would be places not necessarily ideal for flip investments. Though these areas are great for cash flowing rentals! Hope this helps, and happy hunting!