Converting Large Single-Family to Multiple-Family in Houston

[Jake Clement]

Hey BP, I am new to Houston and just jumped in and got my first flip done here to get a feel for the market. All went well and I would like to also start acquiring cash flowing rentals here as well. I own multi-families in another state which cash flow well but all started their life as SFH's. Finding local cash flow rentals will be a bit more challenging it seems so I am curious if this is a route worth pursuing.

I have found several SFH's that could very easily be converted in to multi's (duplex, triplex) and result in a very good cash flow. Is this feasible in Houston and or surrounding areas? I am just about to dive into a little research but I thought I might start here first in hopes that someone has some insight in this area. I cant say I have seen any non purpose built (conversions) around but again I am new here so maybe certain areas do allow. Thank you for your input. ~Jake

[Mark Sewell]

@Jake Clement just got off the phone with another client.  They just completed a triplex conversion down in third ward - they moved a couple walls and turned it into a 5-unit. They are just now getting it rented out.

They had to submit plans to the city permitting department and get a new certificate of occupancy.  They review all your building plans - HVAC electrical and all that, plus parking is a big concern.  It takes awhile, from what I understand.  And the city has already announced cutbacks, so it could take longer if the staff gets hit with reductions.  But the city permit department is where you need to go.