Any Investors/Locals in the Houston, TX Area?

Question

Hey y'all, I'm a college student looking to purchase my first property next year and I'm trying to get a feel for the market in Houston, TX. I've been analyzing properties that I wish to house-hack, mainly single-family, but have had trouble making the numbers work anywhere within a 30 mile radius of the city. I've been told certain cities excel at different investment strategies and was wondering if anyone could offer some insight? Thanks in advance to anyone who takes the time to read this.

Vijaianand Thirunageswaram · Answer

@Benjamin Carver I see lot of college grads interested in house hacking these days in Houston. House hacking is good strategy but is Houston right play ground for it?  It depends on the location you want to target. It is possible in downtown area where there quite inflow of student population and as well duplexes and 4plexs but other areas not much. In other areas, I have seen investors doing with SFH homes but finding partners or room sharing bit tougher unless you have contacts. So choose which area you really want to be and try it out accordingly.

@Jamal Fontenot I see you are targeting Katy which is surely one of good school districts around but Katy has exploded in last 10 years and it spans from south to north of 10. Bear Creek south is decent neighborhood but make sure you are not flood zone or flood plain. We have so many houses flooded in Katy near Bear creek park area.

@James Polk I see you house hacking and room renting strategies. I would be interested to see where you able to get those duplexes...

James Polk · Answer

Hi Ben, you can cashflow in Houston. A rule of thumb for you is that rent is about 400 per room.  The nicer the area that goes up to about $500.

Let's say you get a 3/2 for 150 k. Decent neighborhood. You could rent 2 rooms for approx $450.  Mortgage escrow run about $1500.  You would pay about $600 net.  Not a bad deal. If you get another room at same house cost you are paying $150.  Close to zero.  Definitely house hack if you can.

Jamal Fontenot · Answer

Hey @Benjamin Carver ! Newbie investor myself. I think a great place might be katy. KISD is a great school district and you can for sure find some low priced properties out there. Bear creek South is one of the subdivisions I'm currently looking at. Hope this helps!

Michael Dang · Answer

@Benjamin Carver - Spend a solid week in Houston and visit the different areas in Houston.  I think there are solid deals in other submarkets that you maybe overlooking.  Plus spend some time on collecting and looking at data.  Crime rates, median HH income, median HH value, schools, walkability score, flood maps, demographics, population growth rate, and etc.

Daniel A. · Answer

@Benjamin Carver

Hey Benjamin I am a realtor and investor and a few years out of college. I am currently doing house hacking inside the loop (meaning within I-610) . House hacking is a fool proof method if you are ok with roommates. The matter all comes down to location, your living preferences, and budget. For example, how many people are you willing to room with? Also if you want to be inside the loop due to proximity to downtown, midtown, certain bars, restaurants, museums, UH, etc your budget will need to be higher than if you want to house hack in the burbs. Reason being is land is more expensive within the loop. There are also a lot of sketchy and now gentrifying areas within the loop so it’s important to know where to look. 350k+ can get you a 2100ft 3/3 townhouse small to no yard where you can rent other 2 rooms out vs say in katy you would only need 250k for a 3/3 and would get a good yard. Or as James was saying you can get a older house in a worse neighborhood for 150k and charge $400/room. Ie I charge $950/room because my house can warrant that. It all depends.

Feel free to reach out and I can walk you through my specific deal. I can also split commission with you on your purchase.

Chris Hopper · Answer

Send me all the Bear Creek flood deals!  I'll buy every one of them.  Just got another one under contract yesterday in Bear Creek.

Jodi Gauthier · Answer

@Jamal Fontenot

I focus on some of the older neighborhoods south of 10. You will find they are zoned to good school with lower tax rates. Check out west memorial, memorial parkway, Nottingham Country. These neighborhoods are also shorter commute to Houston when considering roommates that may work in the city.

James Polk · Answer

Ben, I have bought maybe 5 duplexes over the 11 years i have invested.  I will be building a couple duplexes this year.  Yes they can be decent cashflow deals when you can get them.

Christopher Boutte · Answer

Have you looked into SFR with mother in-law suites or ADUs?  They are typically small efficiency units (1 bed 1 bath kitchen) but you could rent out the main home and live in the ADU.  I'm currently doing the opposite in my primary residence as my fiance needs all the closet space she can get!

Vijaianand Thirunageswaram · Answer

@Jodi G. is right! There are quite good older communities south of 10 but pricing might be tricky. Westgreen is another to add to the list. But keep checking and you might hit a jackpot.

Any Investors/Locals in the Houston, TX Area?

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