All Forum Posts by: Account Closed

Great discussion on this thread @Dave Fagundes, @Account Closed. I live in the Heights and am currently looking to purchase a 4-12 unit MF property in the area. I've also been looking around Montrose and recently was corresponding with the owner of an off-market 4 unit who was looking to sell (connected with him via my direct mail). The property is in a great location and needs relatively minor upgrades to increase rents (currently below market). He's valuing the property at a 3 cap which simply isn't an attractive investment. If using financing, the property is cash flow negative. I'm finding this to be a common theme in the Montrose area. 

I know a developer that builds primarily in the Heights who I've had discussions about possibly building a 12 unit efficiency apartment in the Sunset Heights area (we have a prospective lot identified). Based on an initial proforma, we may be able to end up with an 8 cap after construction assuming rents at $1250/month. With cap rates in the Heights typically around 6, this results in significant value add after the property is stabilized. This sounds attractive but I lack experience in new construction and am not comfortable making an investment alone. I'm happy to bring this deal to an investor who has experience in this arena that would be interested in partnering. Let me know if any of you have an interest or know of someone with experience in MF new construction that would like to explore this opportunity. Thanks all! 

Hi BP community! My name is Trevor and I'm a new real estate investor in Houston, TX. I'm in search of a 4+ unit small apartment in several of Houston's inner-loop neighborhoods with a price up to $1M. I'm primarily focusing on the Heights and Montrose (as I live in the area), but also interested in Timbergrove/Lazbrook, Museum District, Medical Center and Eado. These neighborhoods all have strong demand with Houston's population growth and close proximity to downtown/cultural centers. 

I have an agent assisting with properties on the MLS and am also doing my own direct mail after driving for dollars. Particularly with the Heights and Montrose, there are not many properties on the MLS and the few that are listed are vastly overpriced. In these neighborhoods, my opinion is that any deal is likely going to be found off-market. There are a number of C class properties in these B class neighborhoods, which is what I'm looking for. The high property taxes in these neighborhoods make cash flow a challenge, particularly when factoring in any sort of financing. Therefore, I'm finding that 4+ units is around the minimum needed to spread out the taxes to a somewhat more reasonable level on a per unit basis. Having said that, I believe these neighborhoods will have strong rental demand for decades to come.

If there are any folks out there investing in these neighborhoods, I'd love to connect with you. Also, if you know of any available deals I'd be glad to hear about them. 

Hi @Lenna Groudan. While you may have already found a recommendation as your post is from 5 months ago, I thought I'd pass this along. FHG Houston is a developer that has built a number of homes in the Heights and has experience with a remodel of a bungalow in the Norhill Historic District. While FHG is a developer, they partner with one or more architects. You can see their project on their website: http://www.fhghouston.com/projects.html. It's the Michaux Street project.  Chris Ferguson is the contact and his info is on the website. Good luck!

I'm looking for a great Houston area real estate agent that has a track record of working with investors and is knowledgeable on the local market.  Focus area is inside the I-610 Loop. Looking to purchase a fourplex or even larger multi-family property. Please message me if you're a RE agent that meets this criteria or have a recommended agent. Thank you!

Looking to purchase a lot and build 2 or 3 spec homes in the Houston area. I'm wanting to understand the tax situation if the property is purchased, the homes are built and the first home on the lot is sold over one year from the date of lot purchase, does the capital gains tax rate apply?