Houston worth investing? Prospective medical student needs advice

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Houston worth investing? Prospective medical student needs advice

Bryan Tasumi
Hayward, CA · Member since 2017 · 70 posts · 7 votes

Is Houston worth investing? I plan to work in Houston as a health care professional as they have so many hospitals. I want to house hack but not sure if I should buy a SFH due to hurricanes and flooding. If there were no hurricanes/flooding I would pull the trigger for sure. I think I would love the nice condos over there but I don't think I can house hack them.

Anyone have any advice for whether I should just rent or buy a SFH, MFH, or something else to live there. I plan to stay in Texas for 4+ years for medical school and work. I have about 100k-150k cash to work with and am thinking about investing in a place rather than renting. I am just not sure which market to invest right now with my goals. I am not sure where I will be going for medical school yet but I want to buy to establish residency in Texas and hopefully get into one of the medical schools in Texas.

My plan is to house hack and/or invest in real estate throughout medical school (maybe pay a property manager once I start medical school) to build equity during the 4+ years. I wouldn't mind doing my residency in Texas as well and starting a family there. I am wondering if it is wise having multiple rental properties in all 3 big cities of San Antonio, Dallas, and Houston. I plan to invest in real estate as a doctor. 

Any advice/suggestions would be great. Thank you!

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Michael Le
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
8y

Try this. http://www.harriscountyfemt.org/

I'm not sure if it's been updated with Harvey info but I assume so.

As for why not raising buildings, generally because of cost. I read that it cost an extra $30-50k for each house. I'm also hearing that they might eventually require it for commercial buildings, at least. We'll see if that goes through.

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  • Omar Khan
    Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    @Bryan Tasumi Seems like people starting residency are populating these forums. I can connect you with 2 doctors (1 soon to be and 1 is finishing residency) that I was recently advising who are on BP.

    To answer your question, it depends where you're doing your residency. If you're in the medical city, your best bet would be to live as close as humanly possible to your hospital (regardless of whether you own the property or not). The first year of residency, in particular, is brutal.

    If you don't buy in the flood zone (residential properties in the medical district did get flooded), you're as safe as anywhere else. Not all of Houston got affected and most areas turned out ok (thankfully). 

    One word of advice: unlike other investments, it pays to concentrate one's holdings in real estate. Doing this helps you avail economies of scale as well as reduced operational and management headaches. 

    Without knowing more details around your goals, objectives and how active you want to be, it would be hard to give you an answer. PM me and we can talk about this in detail in a private conversation.

    P.S. Just a word of advice, don't mention how much money you have or you being a doctor on a public forum. Your inbox might get swarmed with "hot offers". 

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  • Michael Le
    Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    Hi @Bryan Tasumi, I'm from Houston. While I'm not currently up-to-date on residential prices, I do know that the Medical Center is growing. They just announced another expansion so it's a strong area. That also means it's generally pricier too, depending on how close in you want to be. As for flooding, there are areas around the Medical Center that are more prone to flooding due to how close they are to the bayous. Just check to see if it flooded during Harvey. Harvey was considered a 1000-year flood so if it didn't flood then the chances are low if will.

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  • Bryan Tasumi
    OP
    Hayward, CA · Member since 2017 · 70 posts · 7 votes
    8y

    Thanks for your responses. How do I figure out what specific streets were flooded? I have looked at FEMA maps but I want to know down to what streets were flooded and how high the water was.

    Also, another question: why do home builders not raise the new buildings off the ground if Houston is in a hurricane/flooding zone?

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  • Michael Le
    Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    Try this. http://www.harriscountyfemt.org/

    I'm not sure if it's been updated with Harvey info but I assume so.

    As for why not raising buildings, generally because of cost. I read that it cost an extra $30-50k for each house. I'm also hearing that they might eventually require it for commercial buildings, at least. We'll see if that goes through.

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  • Account Closed
    Houston, TX · Member since 2017 · 89 posts · 59 votes
    8y

    Since you mentioned house-hacking, Houston has quite a few tall modern homes in the city. Generally the master suite is on top, the garage (and maybe an office or bedroom) is on the bottom, and in between are community areas (kitchen, living, dining) and a couple of bedrooms. If you are comfortable with roommates, it would be easy to house hack one of those. You could live pretty comfortably in an area with access to nice parks, restaurants, and other amenities. The budget you mentioned could certainly cover a down payment, even if you put the house in an LLC and have to pony up 25%.

    Liz

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  • Bryan Tasumi
    OP
    Hayward, CA · Member since 2017 · 70 posts · 7 votes
    8y

    Thanks for the input Elizabeth. My main concern is flooding. Will I have to make large repairs if I buy one of those modern multi-story homes? How much flood insurance per year will it cost now after Harvey has just happened? 

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  • Colin Williams
    Flipper/Rehabber · Pearland, TX · Member since 2015 · 43 posts · 23 votes
    8y

    @Bryan Tasumi I agree with @Omar Khan and @Michael Le . My advice is to look for a duplex or 4-plex close enough to your school/hospital. You can live in one and rent out the other(s). Get a property manager for the rental side and a cleaning service for your unit as your time is a premium. Your tenant(s) will pay the mortgage while you focus on school. 

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  • Keith C.
    Lender · Central Florida Markets · Member since 2017 · 137 posts · 135 votes
    8y

    I have been looking @ a number of flooded home deals for the past few months . The truth is  'Flood Deals ' are few and far between. Unless you deal directly with the sellers , most of the wholesaling deals are looking at 18%-30% returns after all expenses are calculated ( before any hard money considerations) . 

    Considering there is much larger risk with flooded issues which can can pop up,  and considerable  uncertainty of what real ARVs will be at when the dust settles. IMO Those returns are not worth the risk. You would need to clear 50 % ++  to take the chance with a flooded property .

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