Real Estate Agent · SoCal and Vegas · Member since 2019 · 4 posts · 0 votes
Hi everyone. My wife and I were looking into the Houston and Las Vegas markets for real estate investing. Trying to get some feedback from investors on what draws you to either Houston or Vegas, what are some positives and negatives about each market that you have come across?
Rental Property Investor · Washington, DC · Member since 2015 · 429 posts · 393 votes
7y
I cannot speak much about the Las Vegas market. But I am invested in Houston, and here are a few things to consider:
1. Houston is the 4th largest city in the US and the largest in Texas, with over 2.3 million people residing in the city of Houston and more than 7 million throughout the entire metropolitan region.
2. In the next decade, the Houston region’s population is expected to increase to 8.4 million, with employment reaching 4.0 million and GDP topping $1.0 trillion.
3. Houston led the nation in job growth in 2018 creating 120,000 jobs and is expected to do so again in 2019 with health care, construction and administrative services providing the strongest performances.
4. Houston is home to more than 20 Fortune 500 company headquarters and has the third largest number of Fortune 1000 companies in the world, such as Sysco, Walmart, Waste Management, Memorial Hermann Health System, Kinder Morgan, AT&T, ConocoPhillips, United Airlines, and many more.
5. Houston ranks No. 2 in manufacturing GDP in the U.S. with a skilled workforce of more than 230,000 industrial workers.
As real estate investors, we want to invest where people want to live, work, and grow. Growing population, growing employment, growing and diverse mix of industry.
Rental Property Investor · Las Vegas, NV · Member since 2017 · 134 posts · 93 votes
7y
@Michael Rone
Hey Michael, i can't give you any insight to Houston, we do invest in Las Vegas though, and while we consider (and explore potential of) other markets, we are happy enough here currently.
Las Vegas is only now about to be fully recovered from the last meltdown, Property Values in most areas are still going up at impressive rates, albeit slightly slower then the previous few double-digit appreciation years though.
The city is growing, housing demand is high and increasing, supply is low and many areas are improving. New projects outside the entertainment industry are creating new jobs, and the citys of Las Vegas, Henderson and North Las Vegas invest heavily in infrastructure and improving live quality, which are all great signs to start or continue investing here.
Real Estate Agent · SoCal and Vegas · Member since 2019 · 4 posts · 0 votes
7y
Hi @Stephan Kraus!
What is your strategy in the Vegas market? We were trying to do multifamily buy and hold rentals but we are seeing that the numbers just don't make sense for us to cash flow at 10% cash on cash. We've analyzed about 20 properties so far and we're getting anywhere from 4-6% cash on cash returns.
I believe Vegas is a SF market as the small MF are not in good areas. I'm sure @Stephan Kraus would be able to speak to what areas/communities hold rents etc.
Rental Property Investor · Las Vegas, NV · Member since 2017 · 134 posts · 93 votes
7y
Hey Guys, thanks for the street cred but i think there's a bunch way more experienced guys out here in the Vegas market that are way more qualified than myself, and most of those questions have been discussed in depth before on here, just check out the search -
My answer would be fairly generic as it really "depends" on what you are looking to do, what your short- and longterm goals are - My portfolio currently consists off SFH, regular rentals and i have an airbnb in North Las Vegas, we are in the process of closing on a auction property in Henderson that i hope to BRRRR into an Airbnb eventually, now that the city has a new ordinance, but it will also work as a flip. Generally i like to hold properties, Im not a flipper, i get, but there's a bunch out here who are crushing it here with flips though., like Ryan Pineda, Luke Weber or Kenny Carcerres.. you see there's not the one golden strategy (or i just haven't found it yet).
I would not say all small MF are in bad areas, but many the seem to be affordable at first you might want to be REALLY diligent analysing. I'm personally looking for 6-20 unit multifamily properties at the moment, but its a slow process to be honest.
it can be tough to find a deal where the numbers work, but that doesn't mean you should change your numbers, just keep analysing and build your pipeline to keep the leads coming and you will find one - the hard part is getting that deal pipeline, i`m still working on that myself. I actually bought 2 of my properties from the MLS even - one of those for 200k in 2017 that just appraised for 340k - so dont get discouraged, there's deals out there, you just gotta find them
Rental Property Investor · Washington, DC · Member since 2015 · 429 posts · 393 votes
7y
I cannot speak much about the Las Vegas market. But I am invested in Houston, and here are a few things to consider:
1. Houston is the 4th largest city in the US and the largest in Texas, with over 2.3 million people residing in the city of Houston and more than 7 million throughout the entire metropolitan region.
2. In the next decade, the Houston region’s population is expected to increase to 8.4 million, with employment reaching 4.0 million and GDP topping $1.0 trillion.
3. Houston led the nation in job growth in 2018 creating 120,000 jobs and is expected to do so again in 2019 with health care, construction and administrative services providing the strongest performances.
4. Houston is home to more than 20 Fortune 500 company headquarters and has the third largest number of Fortune 1000 companies in the world, such as Sysco, Walmart, Waste Management, Memorial Hermann Health System, Kinder Morgan, AT&T, ConocoPhillips, United Airlines, and many more.
5. Houston ranks No. 2 in manufacturing GDP in the U.S. with a skilled workforce of more than 230,000 industrial workers.
As real estate investors, we want to invest where people want to live, work, and grow. Growing population, growing employment, growing and diverse mix of industry.