Investing in Revitalizing areas

[Daniel J.]

Hey All,

Has anyone or would anyone invest in the Houston, Texas Greater 3rd Ward area or other revitalizing areas? I received my degree from the University of Houston so I am well aware of the area it is. There seems to be a lot of remodels and new builds in the area and some great properties as is. Any thoughts?

Thanks,

Daniel

[Fred Heller]

My problem with the third ward is that the sellers seem to have bought into the hype and they're pricing their properties based on potential, not real world. 

Most of the rental properties I see are old duplexes priced in the mid 200s and higher. Most of these properties are getting $700-$800 per unit, and that just doesn't feel like a good investment. But that's me.

There's no question that the redevelopment in downtown and EADO is moving into the third ward. That, along with all the money being spent to turn UH into a world-class research university, will likely make these properties worth a lot more in the future. But I think investing in the third ward at those prices is more of an appreciation play than current cash flow play.