All Forum Posts by: Matthew Gullo

Roshan,

We would likely need to get more specific to make some absolute conclusions with this scenario. 

1. Lot size is determined by size of building in terms of dimension 100x50 for an example.  From there we would study the survey and go to the code book to make sure we have room for what you need to make money. Lots over a certain size could also require detention. You also need to consider parking and pervious vs, impervious land. The city of houston requires these calculations. The number of stories shouldn’t be an issue.

2. There are a number of ways to finance, construction loan - buy the land and borrow construction cost  against the land and the new asset being built and then refinance when complete. If you have a bank relationship you could get a commercial line of credit loan where they allow you to borrow everything with a certain % down. Im sure there are are some creative things to do as well.

3. Usually 2 stores requires an elevator. We would need to study the code book and see what the minimums are to stay away from an elevator. There are some ways around it. I’ll need to look at my code book and figure out your options.

4. $100 a foot may be good for the building only. Need to consider dirt work, paving, architectural fees, engineering fees, permit fees, and potentials soft construction costs like trah and toilet, etc. SF cost on construction have gone up so it really depends on the type of finishes you install. You’d also want the building to be wood frame to save money.

I've sold a few multi-families in third ward and at the very back of the museum district near 59 inside 288 and just before you get to midtown.  Both of those leased well for the new owners.

I would say to pick an area and do some homework on who your target renter would be, run some properties through the calculator, understand rent rates in that area and get to know the inventory on/off market for a 2-4 units in that specific area.  

With your potential budget of $250-$400k you may look in other areas.  At $400k you may be able to get into a better area with an off-market property closer to midtown or medical center. I think you would still have a good tenant pool for people going to school or working for the medical center/UH, TSU.

Trent,

Just sent you my investor/realtor recommendation in my request to connect on BP.  Let me know if you don't get it. 

Trent I see you're an Aggie. I am as well.

I have a friend/colleague that buys multi-family in the Dallas market and could see who she uses as a realtor for you.

Do you need any real estate help in Houston before the move?  

I have several clients that own rentals and one of them had a few properties flood in the recent Harvey hurricane that just hit Houston.
I wanted to help them by asking for advice on what to do with the tenants until the home is cleaned up.
Do you let them out of the lease?
What do you feel is your landlord responsibility?

Any other tips or advice on the situation?

I have several clients that own rentals and one of them had a few properties flood in the recent Harvey hurricane that just hit Houston. I wanted to help them by asking for advice on what to do with the tenants until the home is cleaned up. Do you let them out of the lease? What do you feel is your landlord responsibility? Any other tips or advice on the situation?