Houston Market Overpriced?

[Harrison Vann]

Hi. I have been analyzing deals multi-family and single-family in Houston for the past 1.5 months and made several offers. I have been looking in almost every zip code in the west and northwest Houston areas. Based on my research, I have found nothing that will rent close to 10% cashflow or even 8%. The houses that were close needed a new roof or had foundation issues because they were built in the 70's. Most homes I have found cover the cost of the mortgage and the capital expenditures. Has anyone had any luck finding anything via the MLS? I think the market conditions are overinflated currently.

[Ridge Tullos]

Deals on the MLS are particularly hard to come by at the moment but they do show up. Problem is, when they show up, they are gone in a matter of hours. If you are going to use the MLS as a source you have to be 100% ready to put an offer in basically the moment it hits the market or target properties that are obviously overpriced and have been sitting for months and attempt to make a low offer. As for the current market a lot of people seem to think it is a bubble, I however am not so sure. New home builds have been way behind the pace of population growth since the crash in 2008, pair that with low interest rates and two of the largest generations in history searching for homes and you get the over-demand we have now.