All Forum Posts by: Sharon Tzib

http://www.har.com/content/mls/?m=9&y=17&utm_source=HAR%2FMLS+Master+List&utm_campaign=37e6c93251-January+2017+MLS+Release&utm_medium=email&utm_term=0_5c0a7c027d-37e6c93251-252424337

Houston Real Estate Highlights in August, 2017:

• Hurricane Harvey ended ten consecutive months of positive single-family home sales, as volume plunged 25.4 percent year-over-year with 5,917 units sold;
• Despite Harvey’s rampage, single-family home sales remain 1.8 percent ahead of the 2016 volume on a year-to-date basis;
• Total property sales dropped 24.2 percent with 7,077 units sold;
• Total dollar volume fell 22.2 percent to $2.0 billion;
• The single-family home median price rose 3.0 percent to $231,700;
• The single-family home average price increased 2.6 percent to $296,418;
• Single-family homes months of inventory grew to a 4.4-months supply, but is expected to shrink with strong consumer demand for housing in the wake of Harvey;
• Townhome/condominium sales dropped 31.4 percent, with the average price down 1.1 percent to $196,230 and the median price up 2.0 percent to $159,000;
• Leases of single-family homes rose 9.4 percent with average rent unchanged at $1,857;
• Volume of townhome/condominium leases jumped 17.0 percent with average rent down 2.2 percent to $1,551;
• HAR continues to encourage anyone who has housing available for temporary occupancy (up to 12 weeks) to please post it on our Harvey Temporary Housing page as soon as possible at www.har.com/temporaryhousing to provide housing to those in need.

http://www.har.com/content/newsroom/

Houston Real Estate Highlights in July:

• Single-family home sales rose for the tenth straight month, up 5.0 percent year-over-year with 7,440 units sold;
• On a year-to-date basis, single-family home sales remain 6.8 percent ahead of the 2016 volume;
• Total property sales increased 4.5 percent with 8,821 units sold;
• Total dollar volume climbed 7.5 percent to $2.5 billion;
• The single-family home median price remained statistically unchanged at $230,000;
• The single-family home average price increased 2.4 percent to $299,131;
• Single-family homes months of inventory grew to a 4.5-months supply, the highest level since September 2012;
• Townhome/condominium sales fell 9.0 percent, with the average price up 1.8 percent to $201,148 and the median price down 6.2 percent to $150,000;
• Leases of single-family homes jumped 15.6 percent with average rent down 3.2 percent to $1,815;
• Volume of townhome/condominium leases rose12.3 percent with average rent down 5.1 percent to $1,546.

http://www.har.com/content/newsroom/

Houston Real Estate Highlights in June

• Single-family home sales rose 8.3 percent year-over-year with 8,414 units sold – the largest one-month sales volume of all time;
• Total property sales increased 8.3 percent with 9,993 units sold;
• Total dollar volume jumped 10.4 percent to $2.9 billion;
• The single-family home median price rose 2.6 percent to a record high of $239,023;
• The single-family home average price increased 1.5 percent to $304,155, which was also a record high;
• Single-family homes months of inventory grew to a 4.4-months supply, the highest level since October 2012;
• Townhome/condominium sales edged up 1.2 percent, with the average price up 7.6 percent to $215,713 and the median price up 3.6 percent to $171,000;
• Leases of single-family homes jumped 17.4 percent with average rent down 4.0 percent to $1,806;
• Volume of townhome/condominium leases rocketed 21.3 percent with average rent up 2.5 percent to $1,698.

Don't forget to consult with your CPA about the tax benefits you'll now be able to enjoy turning the home into a rental (depreciation, interest and other deductions). I find many newbie investors overlook that, but even one rental can have an amazing effect on your effective tax rate. 

Hi @William Carr. It's good you are taking time to study and get comfortable with the terminology and strategies of REI. If you decide to go the buy and hold route, I'd be happy to answer any questions you have as that's been my investment strategy for years, and the one I help most clients attain.

I just leased up a Katy rental for a landlord client of mine, and it took about 45 days. Granted, we were super strict on our criteria and rejected several dud applications, but just be aware homes aren't renting as quickly here as in years past, unless you relax your criteria, which I wouldn't suggest.

http://www.har.com/content/mls/?m=6&y=17&utm_source=HAR%2FMLS+Master+List&utm_campaign=45fa61a732-January+2017+MLS+Release&utm_medium=email&utm_term=0_5c0a7c027d-45fa61a732-252424337

Houston Real Estate Highlights in May:

• Single-family home sales rose 11.5 percent year-over-year with 8,156 units sold;
• Total property sales increased 12.3 percent with 9,744 units sold;
• Total dollar volume jumped 17.4 percent to $2.8 billion;
• The single-family home median price rose 4.4 percent to a record high of $235,000;
• The single-family home average price climbed 4.3 percent to $302,362, which was the second highest level of all time (highest was $302,629 in June 2015);
• Single-family homes months of inventory grew to a 4.1-months supply, the highest level since November 2012;
• Townhome/condominium sales surged 16.5 percent, with the average price up 3.1 percent to $206,363 and the median price up 0.9 percent to $163,500;
• Leases of single-family homes soared 31.0 percent with average rent down 4.2 percent to $1,779;
• Volume of townhome/condominium leases rocketed 46.2 percent with average rent down 6.7 percent to $1,565.

Well it's your home, so "technically" you can do any of the above with it, up to you. Renting a home for six months or as a corporate rental can be more challenging, however, since there is a smaller pool of tenants for those types of rentals, but HAR (Houston's MLS) allows you to set the term you want if you choose to advertise it there; Craigslist is very flexible.

Air BNB is a good option as long as your subdivision doesn't disallow it or something (I wouldn't buy a town home for this reason, HOA may have regulations against this). Since your schedule may not be set, it seems to me any kind of long-term lease, even six months, could be problematic if you need to return and someone is still in the middle of their term.

I'd do some research on Air BNB so you know the risks of having basically strangers staying in you home, coming and going, and the upkeep required. You are still going to need to have someone maintain the yard, wash sheets/towels in between guest (unless you require guests to do this before leaving), clean the house, etc. Basically you'll be running a vacation rental, so you'll need to put some thought into how you can accomplish this, or find a property manager who specializes in this type of property.

If you really want an LLC, you can get the mortgage in your name and title the property in the LLC's. Most lenders will allow this and many of my clients have done this. That way from Day 1 the property is in your LLC without having to circle back and do a quit claim deed.

@Anita Ahuja when I first was looking to branch out from California because rentals wouldn't cash flow any more back in '06, I settled on Indy from a referral of an investor-friend I had who had been successfully investing there for years. I purchased two properties, one of which I still own, and I've never been back to the property since. I don't feel a need to visit my rentals. Annually, I have my property manager perform an inspection and send me pictures, and that's all the verification I need the house is still standing ;)

Once you decide on a location, your first step will be finding a real estate agent. From there, they can usually hook you up with all the team members you'll need, like a lender, insurance broker, property manager, etc. (that's what I do for all my clients in Houston). Each subsequent vendor that you work with will also have referrals for you as well. Soon enough, you'll be able to find someone to do whatever it is you need in the new area.

My point is, I would not choose an area just so you can fly to it, because frankly, I think you're going to find you won't be doing that much, if at all, and your tenants certainly won't want you popping by all the time either.

As the years have gone by, one criteria I personally have developed is I don't like to invest in snow country. God forbid a tenant leaves in the middle of winter (had it happen once, broke the lease and bolted due to personal reasons). Took four months to get the house rented. No one wants to move over the winter. Longest winter of my investor life, and now I'd much prefer to buy somewhere that will have no chance of happening again.