Investing in Houston

[Nitzan Bishri]

Hello Houston BP Community,

My partner and I are looking to get into the RE investment market in Houston. We are looking to start acquiring properties using the BRRRR method, if available, from SFR and up to a fourplex.

We are out-of-state, so any information you can provide will be greatly appreciated;

1. What are the best areas and zip codes in Houston? What are the average prices?
2. What is the property tax rate? Does it change based on the municipal area?
3. What is the average annual insurance premium? I know that there are flood zones, which have higher premiums than other areas.

Thanks and looking forward to connecting with you.

Wishing everyone a successful 2022!

[Karl McGarvey]

Welcome to looking into the Houston market!

There are a lot of "it depends" answers to your questions. For example, "best" areas is tough to define. What do you consider for saying an area is the best? Is it best returns, best schools, best rentability? Average prices are anywhere from 50K to over $1million, depending on what you are looking for. Last year in Houston the avg SFH sold for around $370K.

Insurance is another one that is tough to give an average of. Certain areas on the city and its suburbs require flood and windstorm insurance which are 100% dependent on property value, location, elevation.

Right now for BRRRR there is a lot of opportunity in Galveston TX, about 40 minutes South of downtown Houston. Its a beach town with potential for both STR and LTR. Flood and Windstorm insurance play a huge role on the island, however there is no shortage of homes to be rehabbed and harness untapped potential.

Hope this helps!