Investing in the East Side of Houston

[Ashton Allen]

My wife and I are new to Houston and are looking to invest in a duplex on the east side of Houston (East Downtown/Greater Eastwood Area). We have spent a decent amount of time doing online research on both areas and just drove the properties we are looking at today. At first glance, the overall area seems to be pretty rough but it seems like there is a lot of new development going on. Does anyone have any insight to the plan for this area and would we be making a sound investment out on the east side in a duplex?  

[Fred Heller]

@Ashton Allen     EADO is definitely the next big thing. Well, one of a few next big things. Most of the current redevelopment is closer to downtown, and you'll see spotty new construction elsewhere mixed in with older rundown homes.

Builders seem to favor either larger rowhouse-type communities or the taller 3-4 story houses built on a postage stamp lot with your neighbor's house five feet away.

The problem I have with the area is that you're paying a premium for what the area may become five years from now. I've looked at a few very nicely remodeled duplexes in that area. Asking price was $400,000 - $500,000. But the neighborhood comps are telling me that similar remodeled homes are renting for $1200-$1300 tops. I just don't see any universe where that makes sense unless you're working a long-term strategy.

The same thing is going on in the Third Ward/University area.

Anyway, PM me if you would like to connect and discuss what's going on in EADO.