All Forum Posts by: Sharon Tzib

Hi @Amanda Haynes. I work with buy and hold cash flow investors. Feel free to pm me if you want to chat.

Hi @Heather Hibbard! Welcome to BP and the world of REI. I help investors purchase buy and hold cash flow properties in Houston. Feel free to reach out to me any time and I'd be happy to answer your questions about getting started. Good luck!

@Serkan Eren I've helped many out-of-state investors purchase buy and hold cash flowing rent-ready properties in Houston. I've also owned my own rentals out-of-state (in Indy, coincidentally), so I understand the dynamics of that as well. Feel free to PM me and we can chat more about your goals and the market here.

So this is what I would do if I were you. I would lease up the two studio apts and one side of the duplex, leaving the other side free for showings (so you don't have to bother your tenants) and available in case an owner-occupant (i.e. house hacker) wants to purchase to live in. If you do lease both sides, than make one side a shorter term, like six months, so house hackers won't be turned off completely. This way you will have income coming in and you will appeal to the widest buyer pool possible.

@John Vo So sorry, but my reference to what I eventually sold my Calif property for was strictly anecdotal - I was in no way, shape or form trying to state that is what will happen w/ Houston - now that would be self-serving lol!! 

Anyway, yes, I am confident in Houston. I think we will have some bumps in the near future, but our economy has proven to be pretty resilient, I believe it will continue to weather the storm enough to not fall off a cliff, and as long as rents hold or continue to increase, and jobs in industries other than o & g continue to be created or hold steady, it still makes sense from an investment standpoint. Also, sorry, I can't put my finger on the sites I've seen that 30% number, but it's been more than once over the last couple of years, and it depends on if you just looking at the % of jobs that are in o & g, or whether you are looking at all the ancillary businesses that service o & g. 30% is for the latter. My attachment does clearly show the number of jobs in o &g, and it's not the dominant force it once was, which is a good thing in times like these with lower o & g prices.

I love what @Keith Goodwine says. So true. So many of my investors have been complaining that the market has been too hot and prices too high; now competition is lessening and prices are normalizing and they're too scared to pull the trigger. You can't have it both ways folks!

I had to laugh at that. My first property was in N Calif back in 1998, $198K 3/1, built in the 50's, rented it for $1795. Barely cash flowed, but w/ the lower Calif property taxes, I broke just about even. In 2006, sold it for $565K! I think $140K 3/2's with 5-8% coc is pretty darn good, which is still out there in Houston, but one must dig, as you've said. I guess it's all about perspective, huh?

You are correct, no one knows what's going to happen w/ oil, but its decline started two plus years ago and Houston has more than weathered the storm. As it turns out, oil & gas accounts for about 30% of the Houston economy. And it's not our dominant industry any more. See the latest from the BLS http://www.bls.gov/regions/southwest/summary/blssummary_houston.pdf It answers @Hersh M.'s question about why do people keep moving here. Our unemployment rates are about the same as the national average, but our wages are better overall, we have a lower cost of living, no income tax, and great weather most of the year. 

Having said that, I believe Houston's market is going to start normalizing. This isn't because of any scary "bubble" or "crash" caused by oil, but because A, it's historically that time of year where the owner occupants with kids are back in school, which leaves us o/o's w/out kids, transplants, single folks and investors - demand will be down. B. inventory is up, finally (yay!!). Per July's Housing stats from HAR, we now have 4 month's inventory (http://www.har.com/content/newsroom). This is a very good thing and is already starting to have effects in the market with price decreases, something I haven't seen in the last two years at all. 

Another thing not being talked about (at least that I've seen on any of the forums) is the affordability factor. Nationwide, people are being priced out of the market, and Houston is no different. Buying a home is becoming harder and harder for folks, so if supply continues to increase but buyers can't purchase, that will have an automatic normalizing effect on our market. 

I realize anything I say as someone who makes her living selling homes can sound self-serving :) but I really am quite bullish on Houston, and I think the next six months are going to present an awful lot of opportunity for investors who still believe that Houston has a lot more going for it than just oil.

@Donald Hendricks - give @Jerry Ta a call. All of my investor clients have been quite happy with him.

Hi @Victor P.. Welcome to the world of investing :) If you care to learn more about multi families in Houston, send me a PM. I've helped clients do what you are wanting to do.

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

Houston Real Estate Highlights in July:

• Single-family home sales fell 8.8 percent with a total of 7,204 units sold;
• On a year-to-date basis, single-family home sales are up about one percent;
• Total property sales fell 8.6 percent to 8,571 units;
• Total dollar volume declined 9.0 percent to $2.4 billion;
• At $230,000, the single-family home median price rose 4.1 percent to a July high and second all-time high;
• The single-family home average price declined 0.5 percent to $292,316;
• Single-family homes months of inventory climbed to a 4.0-months supply, its highest level since November 2012;
• Townhome/condominium sales fell 7.4 percent with the average price down 2.5 percent to $197,104 and the median price up 4.5 percent to $159,900;
• Leases of single-family homes were up 2.3 percent with rents up slightly to $1,879;
• Leases of townhomes/condominiums soared 10.6 percent with rents flat at $1,630.

Travis, I always tell my clients that in Houston, it's not a question of if you will get a foundation issue, but when. The good news is, because it is such a common problem due to our clay-based soil expanding and contracting with the rains and heat, it's a pretty competitive field. Your estimate seems really high to me. I just got a quote for 18 piers for $5400, lifetime warranty from http://levelcheckfoundation.com/, whom I highly recommend as being very honest and reliable.

You should always try to get the seller to either do the work and/or credit you the cost at closing for the whole amount, but in this strong seller's market, that can be very hard to do, especially if they have a back-up offer in the wings, which many smart sellers do. So then it's a function of your numbers. Does the deal still work if you have to pay for any or all of it. I would definitely use the higher estimate to negotiate with, as well, but if it comes down to you having to cover some or all of the cost, then at least you should have 2-3 estimates to determine how economically and proficiently it can be done.

Foundation issues can be very scary, and I have had a handful of buyers walk away from a deal because of it; but I've had more continue on because they know it is a crap shoot trying to find any property that is immune from this issue in Houston. Hopefully this is helpful. Good luck with whatever you decide.