Brand new Houston duplexes

[Junior Abraham]

Over the last few days i have looked at 6 brand new duplexes that were not in the best houston neighborhoods. These include the greater OST/Yellow Stone, Sunnyside,lockwood,Third Ward and Fifth Ward areas. Properties range between $250,000 - $700,000. These areas look to be below 10% gentrified without much new development going on. Does anybody have any experience or insight on these area?  

[Sameer Bhalesha]

You can never go wrong at buying in discount. Look at sold comparables in the area and buy at discount of 30%+. With COVID-19, I would expect discounts of 40%+. The deeper the recession becomes, the more discount I would expect. The United States is at the beginning of the recession. The best deals always come directly from the seller instead of an agent. Although wholesalers and investor agents can bring great deals. 

Let's go deeper into Houston and ask yourself where you should buy? I would buy where condo and house prices are increasing with a combination of new houses built after 2005. Target median blue House/Condo values mix with median blue % of houses built after 2005. You will find the right mix where the area is gentrifying with a lot of appreciation still left, and a good amount of new homes were built in the last 20 years. This way you will not be buying in areas where 75% gentrification will take 10+ years, but 5-10 years. I would not want to be the first 25% who are gentrifying the area. Above 25% and before 75% would be best for me. Then you ride the appreciation wave when the area hits above 75% gentrification. 

Figure 1: City data shows Median House and Condo change % from 2000.

Figure 2: City data shows % of homes that are 2005 and older. 

Figure 3: The Economic cycle and where the United States is (my belief). Buy close to the Trough and ride the expansion. 

Many ways to start see data on a particular area. Type in Zip Code. You can see if the area is hot or cold for buyers and sellers. Data such as house sales and median sale prices are included. 

1) Redfin

2) City-data

3) Zillow

4) Fema Flood Map