Is Cash-Flowing in good areas of Houston, TX possible?

2 Replies

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. 

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