Is Cash-Flowing in good areas of Houston, TX possible? I am looking for a SFH or Multifamily in the Houston downtown/medical center areas. I am wondering if cash flow is very good in this area or if the high property taxes/HOA fees/prices makes it not possible/not a good investment. I am not sure if I can charge $1000+ per room and what the vacancy rates are in this area.
Anyone know or know how I can get these numbers?
Depends what kind of cash flow you are looking for and consider good. For SFH In a good B- to B+ area it is fantastic to make $200.00 per door after expenses. That what is I prefer; lower profits but less headaches and consistent paying tenants. You can $200.00 plus per door in C and below class areas but will have to be more attentive.
@Tom Smith You will have better luck with buying MFs and will be able to charge 1000+ for 1b1b if they are class A or B+. Better looking for 3-4 units (2b2b ideal) situation.
You will have to defend for the tax. HCAD will push the tax high but you can lower it with good attorney.
I currently owned a 4 units (three 1b1b and one 3b3b). About 3% vacancy given, I prefer long term tenants with average rent rather than 1 year lease (turnover) with market rate.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.