Houston area deals 2017 - where are you finding them?

[Nick S.]

As 2017 kicks off, I'm newly motivated to pull the trigger on my first of hopefully many rental property deals.

I'm mostly looking at moderately distressed 3/2 SFRs in the Houston suburbs for buy and hold rentals. I'd like to target something in the 1.25%+ rent to "all in cost" (purchase + rehab) range.

Where are other investors currently finding deals in the 1%+ range?

• MLS - seems like there are some, but they move quickly
• HUDhomestore.com - doesn't seem like there's much inventory and the ones listed don't seem like great deals
• Auction.com - I've just started looking at this, could be a possibility
• Wholesalers - I've only talked to one of the "full service" wholesale brokers so far, haven't started networking to individual wholesalers yet. The deals I was seeing weren't all that enticing.
• Direct marketing - could be the best option, but I haven't taken the plunge into this as of yet

Any suggestions or opinions on where I should be focusing my efforts?

[Sam Craven]

Our office is in the Heights actually @Luke H. small world!

Let me give you my .02 on the pros and cons of each of the methods you laid out there.

MLS-great source for deals, just like any other type of marketing you have to do it consistently to get results. The best results are usually had by people that have a laser focus on a certain zip code or neighborhood. Networking with agents that specialize in those areas as well. If you go the shotgun approach you are going to get worn out pretty quick.

HUD homestore/Auction.com/Hubzu ect. These all take making A LOT of offers with A LOT of follow up. Its a full time job to get deals consistently off of these and its a black box of communication and understanding.

Wholesalers-(Full disclosure my company wholesales) There are a handful of reputable companies that have a consistent flow of deals.  I would focus on these companies, especially the ones that have a sales staff that get to know your goals.  You can sometimes have luck with the little guy but a lot of times they dont have enough experience to know what a good deal is, and that pass that "not a good deal" on to the buyer.  The biggest thing you can do there is make sure the company knows what looks like a good deal to you. 

Direct mail - I know this works because we spend a lot of money on it.  But remember as soon as you send out a batch of letters you are in sales.  Taking leads, meeting with homeowners and negotiating on the property.  No doubt you will find your best deals by doing your own marketing, but you will need to work for it.

Hope that helps!