What is your buying criteria for cash-flowing rentals in Houston?

[Axel Norvell]

I'm looking to buy cash-flowing rentals in the Houston area, and I'd love to hear what target numbers and buying criteria others in this area are shooting for when deciding to purchase a rental.

For example:

- Rent should be no less than 1% of the all-in purchase price (1% rule)
- Property should cashflow at least $200 / month after all expenses
- Property should be located in North-West Houston area, or an area I'd be comfortable living in
- All in cost should be no more than 75% ARV
- Rehab must be medium to light, no tearing down to the studs.

What is your buying criteria, and are you meeting it in today's market?

[Mark Sewell]

Yeah, NW Houston is pretty much what everybody is looking for.  You might be looking for awhile.  

The deal you describe is out there but it might be in Pasadena or Missouri City or someplace.  You are might to need to toss out or modify a couple of those parameters - at least one of them.  

We should go have a brewed beverage.  I actually did get a pocket listing exactly as you describe - partnering on it with another buddy here from BP, actually.  So keep networking - it is probably the only cost effective way to get a deal right now.