All Forum Posts by: Brian Foster

@Wade G. Spot on. Just an average but a good one. 

@Lee V. Interesting question Lee. Perhaps you should consider some of the companies that have invested in Houston already as well as ones that continue to do so. Huge amount of capital being spent by big players in the Chemical industry (Big Oil & Gas) in Places like Baytown and on the East side of town. Amazon, FedEx, Dakin making major investments on the West & NW side of town. 

In 2016 Houston edged out NYC as the most diverse city in the nation due to all the people moving here to take jobs that are being created at historic rates.

The Oil & Gas sector shed >80,000 jobs in 2015 & 2016 and yet we started 2017 at the highest employment levels in the areas history. 

Infrastructure developments like the Grand Parkway as well as a high speed rail between Dallas & Houston. 

I'm possibly biased ;-) , but I think Houston is one of the best places to invest in the USA and possibly the world.

Our normal rehab budget is about $20/ft2, for flood damage that can go to $30/ft2.

So a 2,000 ft house normal rehab we would budget $40K, flood damage could go to $60,000.

Yes, buying properties near Grand Parkway and also lots. It is a much different play than the city but I think you will see that as soon as you drive on it

@Stefan Stankovic Those are rough areas that you are looking in and there are both some inflated prices and a few opportunities remaining there as well. You are looking at a higher risk/possible reward because these are areas of the city that experiencing "gentrification". As other posters have pointed out, that is not a process for the faint of heart or those who lack experience. It is hard to tell how long it will take but i think those areas will improve a great deal. I applaud your initiative and that you're willing to look in those areas.

Have you considered areas along the Grand Parkway? Totally different scenario than investing in the City to be in the burbs. I think both areas have big potential, I think the grand parkway strategy will not be as rough as it develops.   

@Jesus Perez I agree with Fred and think you've found a good area to purchase in. We rent houses quickly and easily in Cypress/Jersey Village due to location and schools. And I agree with Fred that the price point you are looking at is unlikely to give you as great a return as a lower price point. We look at it as a rent to price ratio. You could actually buy 2 houses for that price that would return you greater rent revenue than one $250K property. And finally I agree with Fred that multifamily are going to provide a better return than single family usually. Again it's simple math that you have more doors generating more revenue for the same or lower acquisition cost.

Multifamily are much harder to find than single family  in the area you're looking and really all around Houston. Multifamily in good neighborhoods in Houston are the unicorns that most investors are looking for. They can be found but they are usually not in the A & B rated neighborhoods that we like for new investors. And a multifamily property in a C class neighborhood can present a new investor with some Property Management challenges that are far different than what you will find in a SF in a B neighborhood. It can be done [we do it all the time] but I would not advise it for a new investor.

I also work with investors who routinely acquire mortgages [most conventional] to purchase single family rental homes and it works very well for them. I think Fred is saying you will get more cash flow [and a greater ROI] if you don't use a mortgage but the number of young new investors that can purchase property W/O a mortgage is few and far between. I see many more investors [both experienced and newbys] utilize mortgages to purchase investment properties and go on to success with that strategy. There are several posts here on BP that will enlighten you on strategies you can use to pay down that mortgage ahead of schedule [more aggressively] if you like. I've utilized leverage (mortgage) to purchase investment properties and many people do. It is a sound investment strategy.

And finally, I like Cypress and Jersey Village a lot and you can expand your search area to include neighboring Katy, Tomball and NW Houston and still be in highly desirable areas that rent well. The debacle that we call 290 will eventually be fixed and it will look much like I10 West in W Houston and Katy when it is done. At that time you should see a shard increase in value to any property you buy in the area [IMHO}.

@Jieh Larson   As they say  Jieh Larson "You do mon"

@Jieh Larson Thank you so much, great tool, do you know if Ft Bend, Galveston, & Brazoria have similar tools?  Great find thank you!

nice tool to use when doing your due diligence

http://www.harriscountyfemt.org/

I don't think you can wrong with areas around the TX99 [Grand Parkway]. They will not all be in Harris Co but you can still find flood mapping tools for those areas. 

The growth you will see along the Grand Parkway in the next 5-10 years will be as big as anything you can find in the Greater Houston Area and should be within your price point. I'd be happy to help you if you'd like. 

Paul is great, have worked with him for a long time

http://www.spielvogel.com/www.spielvogel.com/index...