All Forum Posts by: Scott R.

 Hello Stuart, 

I’d love to hear who your using as well. Am currently moving into this market 

Overall it’s a strong market, rental prices finally going up, and rentals fill up quick. 

Amarillo kind of does it’s only thing it doesn’t follow these crazy national or even Texas up swings, but then we don’t have the down swings either, however we’re experiencing a huge property value increase over the past year or so.
Taxes are really high, as are most of Texas. 

There just aren’t any deals out there at the moment, too many new investors and out of state money. 

Let me know what questions you have

Pampa and Borger are two towns now too terrible far away, but little bigger l and oil driven towns, but you can regularly find 2/1 houses for under $20k that obviously need some work but that’s just the going rate, so me personally I’d put Howard wick a notch below that, 

the flip side to that is, there’s not much available there so you might list it and have someone day 1 wanting it, it’s just such a small market who knows. I’m in Amarillo. 

Yes. There’s not much owner financing up here, even as a rental, it’s one of those it might take 6 months to get a tenant but then they’re probably never leaving til they need something bigger cause again, not a ton available.

It’s tiny, obviously you know that.

Not much demand, as a rental I’d hate having several acres for people to not cut and pile trash on for me to take care of when the move out. 

It’d have to be dirt cheap to mess with. Like under 10k and that might be pushing it imo.

the city of Clarendon is also tiny, but is the bigger city near by, you'd prob search there for realtor and such, the Amarillo MLS takes in those small towns, so an Amarillo agent could help, but often isn't worth it as the prices are so cheap and the drive is so far. The nearby lake is the only desire to the area to most people. Clarendon is small, no Walmart type small, but they do have a local college.

Amarillo is a hot market, prices jumped up recently, not much on market. Amarillo has been high on several “best place to buy rentals” type of awards recently, one of montley fools publications actually ranked Amarillo #1. Theres still money to be made, but not the best market to be buying in currently compared to what it has been in recent times.

Honest question. Why?

I get one house sold for that, but it’s such a small market it doesn’t mean they’d all sell for that. You admit yourself you don’t know what it’d rent for, or if you could even rent it. No reason to build new in such a town for rentals, especially as a newbie. Seems like financial suicide. I’d make sure numbers are solid solid solid. Small Texas towns are so hit and miss. I recently saw a house posted there for 12,000. I’m sure it was trashed and I know nothing about it, didn’t look into it, but I’d think you’d buy something cheap and built to maybe remodel and try out your hand at this landlording in this small town. 

Only problem I see with that data regarding San jacinto is id venture to say it’s as high as 90% of the neighborhood that is sold “off market” and hard to track. 
It’s funny like you said you see people say they don’t want the area, but imo there are far worse areas such as north heights but you never see anyone say they don’t want over there. The revitalization project in San jacinto has many horrible ideas imo, but it’s done wonders for their neighborhood offender cleanup the police have done for repeat offenders. Most of the SJ neighborhood is sold “discounted” “wholesale” and investor to investor. Very small owner occ population, which greatly hurts the neighborhood, owners care about and take care of the property a lot more generally than renters. 
Imo the spike in properties are all newbie out of state investors in the area. 

@Jake S Mckinney I disagree San jacinto is one of the “investment only” areas that has appreciated the most recently. 
1 or small two bedrooms for $35-50k that were just 20-25k year or two ago. 

Tons of new investors looking into Amarillo as its won many awards lately for being a good area for rental property owners, many very unfamiliar with the area and just buying based on return. a $40k house that brings in 6-800 a month is a good return to most, and they don’t understand the area they are buying in. Many successful old time investors have dumped a lot of their San jacinto stuff recently because of this spike. San jacinto has a tiny owner occ population and a majority of the area is investment properties bought at a discount.

The area of town for the 8 unit your looking at is the eastridge neighborhood. It actually has a decently high percentage of owner occ houses compared to most northwest Amarillo areas. There’s slowly dying stores right next to brand new ones in the area, one way you drive you’d think the neighborhood is up and coming and another way you’d think it’s about to shut down. It’s a high Asian population area of town. 

There are several investors who love the area, it’s appreciated quite a bit recently and many have gotten out in the last few years, several small complex’s in the area have sold in the last few years. 

Amarillo as a whole has almost no 2-20 unit complex’s available, and they almost never come on the market, if they do, such as this one, they’re often overpriced imo. 
breaks down to $36000 per door, under 700sqft per door. 
although they might not be sitting on the mls, (one forclosure just was, listed under 20 I think, needed lots of work and I’m sure it went for over 20) I think houses in the area are obtainable for that price, and most are bigger sqft wise. 
there are perks to having multi units for sure, especially as an out of town investor, financing and such, I could just never see paying same price psf for this type of unit when sfh could be obtained for similar prices per door. 

You say the north east side of Amarillo may not be a good area for investment properties, but, the neighborhoods are mostly investment properties, rentals and owner financed stuff, every area has owner occs, but a lot of this area is aging and new owner occupied stuff over here is getting rarer and rarer, as the older population dies off or moves away most of these areas become rentals, so I’d go out on a limb and say it’s an excellent area for rental properties assuming you know what your getting into, but, you also can’t expect much when a property cost 37k and rent is only $500 in 2020. 

Me personally is the opposite of Jacob, I’d buy in San jacinto all day long, but not interested in Eastridge.

Look into property taxes and insurance. Many out of state investors don’t realize how high our taxes are, it seems this is tax valued at about $120k based off one of the listings I saw (unsure if that is total or per 4 plex not sure if zoned together or separate) but that tax value will probably greatly increase once this sale happens. 

Amarillo is a hot area, prob surprise you the amount of traction you’d get with a few fb and craigslist post. 
that being said, multi family stuff is insane around here and greatly overpriced, would you sell the stuff here and buy a multi somewhere else?