League City, TX · Member since 2016 · 63 posts · 26 votes
I am eagerly anticipating my first steps into real estate. I have spent several months saving and researching for my first investment. I currently live in the League City area and would prefer my first rental property to be located close by (south of downtown). I am born and raised in the area and fairly familiar with the region. More than anything I was hoping to get some feed back on the best places to find quality investment properties. I currently use realtor.com, loopnet.com, as well as, my girlfriend. She has recently become an agent. To better clarify, I am curious if there are any hidden places that specialize in investment properties, similar to the BP marketplace, that can be sorted by zip code, price, etc.
Investor · Friendswood, TX · Member since 2016 · 88 posts · 51 votes
10y
Appreciation is generally minimal in the Houston burbs. My appreciation in the past 10 years has probably @20% on average, nothing to brag about. Cash flow is great. My wife and I live very comfortably on 11 properties.
Pearland has a double whammy, not only are the schools excellent, but their sports programs are phenomenal. We frequently are asked by our non-Pearland tenants to let them know when a Pearland property comes available.
The sweet spot for rent is $1000- 1500, so try for properties where those numbers will work. 4 bedrooms rent faster and higher than 3 bedrooms.
If you want to talk sometime, I will be happy to further answer your questions.
Investor · Friendswood, TX · Member since 2016 · 88 posts · 51 votes
10y
My best performers are IN PEARLAND and Friendswood. Just about any place with excellent schools is a great place to invest. Just don't over buy or over rehab.
My best performers are IN PEARLAND and Friendswood. Just about any place with excellent schools is a great place to invest. Just don't over buy or over rehab.
Randy
I kind of figured Friendswood would be a great area. I would assume it will attract a better quality tenant that other areas. I haven't done much research on Pearland yet. I will start looking around there as well. Do you have a general price range that you typically try to stay between, or does it just depend on the deal?
League City, TX · Member since 2016 · 63 posts · 26 votes
10y
@Jason Hirko is both an acceptable answer? I'd like the properties to remain cash flow positive. I plan to use cash flow to pay down the mortgage. I would ideally like properties I will be able to hold onto for a reasonable amount of time, but also have the ability to profitable dump them, if necessary, before some of the bigger maintenance issues present themselves.
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
10y
@Chris Nowlin Yes, but I haven't seen the appreciation in League City as I have in other places closer in, or Pearland or Sugarland. But, the cashflow there can be superior, especially since the folks renting there are often on contract with the refineries and aren't as sensitive to rent rates, at least in my experience.
Project Management · League City, TX · Member since 2015 · 99 posts · 44 votes
10y
Still a lot of room for growth in League City. There are neighborhoods going up all over the place. I think that's why the appreciation is slow.
The neighborhoods that were built in the late 70's and 80's (Countryside, Meadowbend, Landing, Newport, etc.) are good places to add value by rehab though if you can find something.
Investor · Friendswood, TX · Member since 2016 · 88 posts · 51 votes
10y
Appreciation is generally minimal in the Houston burbs. My appreciation in the past 10 years has probably @20% on average, nothing to brag about. Cash flow is great. My wife and I live very comfortably on 11 properties.
Pearland has a double whammy, not only are the schools excellent, but their sports programs are phenomenal. We frequently are asked by our non-Pearland tenants to let them know when a Pearland property comes available.
The sweet spot for rent is $1000- 1500, so try for properties where those numbers will work. 4 bedrooms rent faster and higher than 3 bedrooms.
If you want to talk sometime, I will be happy to further answer your questions.
League City, TX · Member since 2016 · 63 posts · 26 votes
10y
@Randall Jacobs Thank you for the info. When analyzing a deal, do you have a guideline you like to follow for what you are paying vs. what you can rent the unit for? 1% of the buying price seems pretty fair. Do you have a minimium per unit, or is it better to look at the numbers from all of your properties combined?
Investor · Friendswood, TX · Member since 2016 · 88 posts · 51 votes
10y
I generally find that 50% of the rent goes to expenses (mortgage, taxes, insurance, repairs, make readies, etc.)
One important point on insurance. Always get "replacement value" on your coverage. It costs more, but if you don't get it, when you do need it, you will get royally screwed when they factor in depreciation. Back when Ike hit, I got 5 new roofs on my properties. At least 4 of those roofs were old and needed to be replaced before the storm.