Relatively new to real estate - want to improve my cash flow

[Moe Soliman]

Hello fellow BP investors,

I'm a busy physician working full time and after settling in my practice decided to start investing in real estate. After doing my fair share of reading I decided that acquiring buy and hold SFH and renting them is what I want to do for the coming few years. I did acquire two properties (one 4 years ago and one 6 months ago), and plan to try to acquire 2 or 3 more each year. Both properties are class A properties in great neighborhoods and have been understandably very modest in net cash flow ~ $100/month and 200/month after all expenses.

So in order to improve my net cash flow to $300 to $400/ month I decided to start looking at cheaper older homes (built in the 60’s and 70s) in the 150K to 180K range in Friendswood, Pearland, League city and surrounding areas ( I live in Friendswood, TX). I will use a conventional loan with 20% down for now. I have no time or experience to rehab properties that’s why I need to buy properties that are ready for move in.

Here are the issues that I need advice on:

1.Galveston and Brazoria County require a separate Windstorm insurance which makes insurance even more insanely expensive than it already is. Should I focus on Harris County instead? Or should I just shop around for cheaper insurance companies ?

2.Every time I find a good deal, the property would get multiple offers in a few days and I would have to raise my offer until it’s not a good deal anymore. Am I doing something wrong?

3.Is expecting $300 to $400/month from a SFH realistic in the Houston market?

4.Am I looking in the wrong area of Houston to get that kind of cash flow? I don’t have a property manager so wanted my properties to be close to where I live (Friendswood, TX)

5.Am I looking at the wrong investment strategy for this area or for this kind of cash flow ? Should I be looking at multifamily units instead?

I would appreciate any input or advice from other more seasoned investors, especially if you have experience in this area of Houston.

Thank you

Moe