All Forum Posts by: Blaine Gerick

Hi @Michael Wittner, we have a development in Katy and some more around Houston. This sounds like an interesting deal. Can you send me the details?

Thanks!

Hi Cansom, what strategy are you going for? Sugar Land is a great place to live but might not be ideal for cash flow unless you purchase an older home and put in sweat equity.

Hi Kenisha,

My company is working on plans to build duplexes in Houston. From our initial pro forma, wIth 25% down you will be able to cash flow. I have not seen a turn key duplex with the ability to CF at 3.5% down. You are correct about Downtown Houston - not much going on there. Rice Village, Washington Ave, the Heights, EaDo, and Garden Oaks/Oak Forest (GOOF), are where people like to be (higher rents). You may notice not many tri-plexes and four-plexes in Houston. This is due to permitting restrictions and the requirement to replat to commercial for 3+ dwellings on one lot.

Hi BP Community, I have a lot in North Houston that has small frontage but is very deep. I am thinking of building 3 - 4 SFR on this plat without splitting the lot. Is this possible in Houston?

Any advice would be greatly appreciated!

Hi Aysha, we are currently working with wholesalers in Trinity/Houston Gardens. There is a good amount of BFR interest due to lower land costs and the demand for smaller homes. A good supply of renters with close proximity to Downtown. The downside is a potential crime and the schools in the area which people have already mentioned. I believe this area will see many new developments in the coming years.

Hey Michael! Can you send me some more info to [email protected]? The attached pictures are tough to see.

Some great posts here already. My $0.02's is to double-check property taxes in Texas and confirm insurance for each property/area. Windstorm, hazard insurance, and flood insurance loves to burn cash flow. Angleton insurance is almost 2x that of Beaumont. Good luck!

Hey Stephen, I have been to a tax sale auction once and was able to acquire a property. It is competitive, with a lot of people walking around with bags of cash. When you go you should have your money ready and do some DD before. There will be multiple auctions going on at the same time so you have to run back and forth to submit bids/offers. You bid by raising your number and yelling your offer price. The precinct constables are the auctioneers. Bring a binder with property notes, Cause # you want to bid on, and the maximum you are willing to go.

Side note: confirm with your title company they will do redemption tax properties. Some title co's don't like dealing with them.

Good luck!
 

Hi Ali, in my opinion, Houston offers more appreciation than the Midwest with lower cash flow (lower cap rates). Of course, if you get a good off-market deal and rehab it, you can get some nice cash flow. When looking at properties in Houston, make sure you check the tax rate and know your home insurance cost. Both of these can kill a deal when compared to the Midwest. Good luck and don't forget about ADUs or Opportunity Zones.

Hi Amy, I have not seen a standardized Texas contract used by wholesalers. Most of the wholesalers I work with have unique contracts with varying conditions/language. They are usually 1-2 pages.