Rental Property Investor · Houston, TX · Member since 2016 · 37 posts · 1 vote
Wondering who all in Houston, TX is currently looking for their first rental property investment? I have been actively searching for the past month with a RE agent but have been outbid on 4 homes thus far. I am bidding on home that are on the MLS, both turnkey and some needing rehab.
Any advice on finding better deals off market? MY RE agent runs off market searches but I havent seen much. We also started looking at foreclosed homes as well.
I am not in a rush to seal my first deal but finding more deals and putting in offers would help my odds.
Realtor · Houston, TX · Member since 2017 · 178 posts · 68 votes
5y
Hey Mark, I'm assuming you're a cash buyer. The best deals are off-market, not on the MLS. Most real estate in Texas trades off the MLS. Go join a couple of real estate investment clubs. Get your email on the buyer lists of as many wholesalers as you can. Get a fresh list of owner-occupied pre-foreclosures in area of interest and go knock on some doors. Go to the tax auction and make connections there, just watch & learn while you're there, it's fascinating! Don't use an agent to get your deal, maybe pay one to help with paperwork only.. unless you are buying a listed property. When the other side has agent representation, it's illegal for the agent to run both sides of the table. So they'll get someone else on their team to represent you. That's like suing somebody but letting them pick your attorney. Otherwise, the time to use an agent and the MLS really is to get top dollar on the retail market when you want to sell. Hope this helps.
Houston, TX · Member since 2018 · 14 posts · 2 votes
5y
Oh okay I understand, sounds like a good idea. I have 6 acres north of Houston that I was going to try and develop storage or maybe an RV park. Well, the City that it resides in has said otherwise so I decided that maybe duplex housing would be the best route to take. In Montgomery County, I guess duplex houses are still considered residential and so it is okay. The land used to be commercial 10 plus years ago but I believe they (the city) annexed this land and determined its not good for commercial lol.
Investor · Houston, TX · Member since 2014 · 79 posts · 118 votes
5y
@Mark Zermeno The problem may be the condition of the homes you are looking at. If you are looking at homes in decent shape then you are competing with homeowners that are considering buying that home to move into and live in. They will always outbid you because they don't care about profit. You have to target homes that are REALLY distressed and that your average homeowner will not buy. Those will be your best shot at buying homes off the MLS. Otherwise network your butt off with wholesalers and see if they can bring you a deal. Good luck!
bid high, get under contract, do an inspection, wait till end of inspection period, negotiate down some, buy house
Anything you bid over value should be made up with appreciation the first year +/-. Be prepared to bring some extra cash to closing if needed if the property does not appraise. This is a winning strategy right now in my opinion.
It is not worth 5-10k to lose a home if you are in for the long haul. Every 1k in financing is under $5 per month.... so it is not painful.
Exactly! If you are looking to invest for the long haul, why lose out on a great property for something that will only cost you a few extra dollars per month. Get creative and be cautiously aggressive.