Where to start in a large market like Houston, TX
2 Replies
Tyler Doyle
New to Real Estate from Houston, TX
posted 11 months ago
Im currently learning about the ways of RE investing, I've always had a niche for RE, but I am now taking action and working towards my dreams of becoming a rental property investor. Since late last year I've been doing my research (reading books /articles, listening to podcasts, watching YouTube videos and etc.) Although I've learned important things, im more of an hands on learner. I will say I am pretty nervous about it because I have little to no capital and due to Student loans I don't have the best credit. I want to get my feet wet, but unsure of where I should start. May I also add I recently moved to Houston in 2019 so I don't really know anyone here especially in the real estate investing field. It would be great if I could find a mentor but I am normally over looked because I am young and many people don't take me serious. I would love to hear how some of you started especially the ones who had little to no capital and also the ones that didn't know anyone in the real estate investing community.(S.N. My goals are to invest in Single-family as well as multi-family properties)
Trent Stone
Real Estate Agent from Salt Lake City, UT
replied 11 months ago
Go to any meetup you can and continue to network here on BP. When I started I jumped out of the airplane and started building a parachute. I made mistakes but I learned fast. The key is to find great deals, so know your numbers VERY well. Houston is huge, so narrow your criteria. Pick SFR or MFR to start, but not both. What types of neighborhoods? What types of properties? What is your minimum criteria for profit and margins? ie. I look for flips, 2-3 beds with space to add another bed or bath in these 5 neighborhoods. I like my properties to have an ARV of around $200k because I know they will sell quickly in those areas. I look to be all-in a project under 70% ARV with a minimum profit of $35k. I make sure if I had to hold the property that I could keep it as a rental with a positive cashflow. etc. etc.
I use none of my own money in my deals. If you find a good enough deal, you will be able to find partners who are interested. Just pick a criteria and become an expert in that niche. You may have to adjust a little as you go, but you will definitely get going. Best of luck to you Tyler!!
Hunter Vigneault
Real Estate Agent from Nashville, TN
replied 11 months ago
You'll have to pick an area of Houston - you can't realistically just cover the whole market and do well. When I moved there a few years back (I've since relocated to Nashville), I picked inner loop multifamily under 20 units. Even then, there is a lot of variation within each sub-market. Pick an asset type you like and an area that is close to where you live or otherwise fits your preferred price guidelines/demographic/market profiles.
As said above, your best bet to learn an area quickly is to network with as many people as possible (admittedly more difficult these days) because you can lean on their experience as you develop your own.