All Forum Posts by: Account Closed

Second Ward has a really distinct character. It has arguably some of the best Mexican food in the US, an urban farm, and a makerspace. If you are operating in 2nd Ward, you will need a bilingual property manager. The structures over there do need a lot of work. Most were built between 1920 and 1940. They have old pier and beam foundations which will need to be leveled, they will need new wiring, new plumbing, probably new siding with insulation. They may not have central air. I looked at a triplex in 77011 (probably the one you're eyeing) and it had month-to-month tenants with a bazillion pets. I strongly suspect that the tenant in the largest unit is into fighting dogs and roosters. My realtor estimated it would need about 100k in repairs to pull solid B tenants, and I trust his judgement on the subject. I do like the area. The old buildings have wood floors, fireplaces, big porches, and I like the proximity to downtown.....but 100k up front is pretty steep, and I really think the ARV for residential properties in that areas tops out around $300K.

Here is a brief history of 2nd Ward:

https://justvibehouston.com/houstons-second-ward-h...

@Roi C.

Hi Roi, I am not referring to the visual impact of the townhomes. There are some areas where replacing, for example, hurricane damaged structures with modern homes above flood-hazard level would undeniably be an improvement to the community. The trouble is that gentrification is often synonymous with displacement and erasure. At many levels, the Houston community is having a complex discussion about revitalization vs displacement. As local investors, I believe it is important we understand the impact our activities can have on our neighbors. 

Here a plan that was offered to the city to address the situation.

https://texashousers.net/2016/02/26/the-opportunit...

Here is discussion on this topic in the Chronicle after interviewing experts at Rice U.

http://www.houstonchronicle.com/local/gray-matters...

This is a particularly hot topic in 3rd Ward, where a grassroots movement is working to manage gentrification in order to revitalize the community without displacing residents. 

https://urbanedge.blogs.rice.edu/2016/05/25/third-...

Independence Heights is getting a Whole Foods. The corporate office initially promoted the store under the name "Garden Oaks" which is a more affluent neighboring community. This is an example of the kind of erasure commonly associated with gentrification. Residents called them on it though, and Whole Foods quickly changed the name.

 http://www.houstonchronicle.com/news/houston-texas...

And since I'm a data nerd, here are the HAR statistics for this area:

HAR shows some extraordinary statistics for this area. "The home values range between $26 - $135 K. Median sold Price/SqFt is $166.67. Median Appraised Value is $ 63.44/ SqFt."  

However:

"Quick overview of current real estate market:

• Independence Heights has 11 Homes for sale with Average List Price $ 633,624. 
• Independence Heights has 2 Homes for Rent with Average List Price $ 1,875."

http://www.har.com/pricetrends/independence-height...

^...This is how people get priced out of their communities. Until I went looking for data to help me illustrate my point, I did not realize that gentrification has already hit this neighborhood like a cudgel. Nothing gentle about it. 

This clearly was not the best discussion forum to post all this in. It has nothing to do with the original post...but since you asked, there it is.

Hi. I am originally from the South-East side of Houston and living here again. I have family and friends spread out all around the city.

I know inside the 610 loop pretty well. I have had my feet on the ground in each of the wards. I have family in the local arts and music community, family in the medical community, family who work in shipping and industry, and family who work in the downtown business district. I know most of the areas south and east as far out as Galveston, Boliver, and Baytown. Of the outlying areas, I know Pasadena, Pearland, and Clear Lake especially well. 

For investment opportunities I'm looking in El Segundo, the areas surrounding the Heights, Bellaire-outside-the-loop, Pearland, and GOOF.

Thank you!

That area is definitely in the Heights proper. Independence Heights is north of the 610 loop with 610 as the dividing line.

The folks I know who live in the Heights are all in cute little houses with big porches on calm and peaceful tree-lined streets. I'm sorry to hear that those townhome-style monstrosities are moving into the neighborhood. Those things are awful to live in. Too many staircases, and when you open the front door, all the A/C whooshes right out of the house and the top floor suddenly feels like an oven...very poor design. I know some folks living houses of this style, both here and in Dallas. Generally they moved in because they like the neighborhood and the nearby amenities, (and the likelihood of property value appreciation) but are looking forward to moving out of the actual houses. Yet, developers just keep building them.

I asked about Independence Heights specifically because some parts of this neighborhood have many homes which have not been well maintained, or have been badly damaged. In such cases it makes more sense to rebuild than to restore. After Hurricane Ike, Federal funds were allotted for restoration and improvements in Historic Independence Heights. Independence Heights was Texas' first African American municipality, which was later annexed into the City of Houston. Any development here, (and there is more going on than meets the eye,) should be undertaken with consideration for how it will impact the existing community. 

Sorry I don't have an answer to your actual question. Good luck with your endeavors. 

Liz

Part of the appeal of the Heights area is all the charmingly restored historic homes. What part of the Heights are you looking in? The tear-down to build-up action you describe sounds more like Rice Military, or do you mean Independence Heights?

According to podcast#77, ask a few of the highest-volume realtors in your area. When you call the title company, mention that the realtor referred you. There was more advice, (and every bit of it is awesome) but I don't recall it exactly. It was in the fire round, at the end of the podcast. 

It would be absolutely shocking to have REIAs or RENCs without any angels in them. 

I, too, am new to RE investing and operating in Houston. Houston has one of the most active angel investor networks in the US. As I understand it, our rental market is very strong, more so since Harvey. "Reasonable" is one of those terms that varies from person to person; however, real estate in Houston tends to be "affordable" compared to other major metropolitan areas. Having said that, many of the less expensive structures in the city were built between 1920 and 1940, pre-air conditioning, on pier and beam foundations (because Houston is built on a swamp,) and have relevant quirks and needs.

@James Kojo That's awesome! So helpful! Thank you for sharing!