My parents have been through many problems in the past several years - from a kidney transplant, to heart attack, and more, my folks have always paid their rent on time, but their other bills have suffered. They work VERY hard, and don't get paid much. Their medical bills suck up all their money, and they refuse to get any government help.
They recently found out their landlord is moving back into their house on October 1st, so they are very depressed, and worried that they will be unable to find a place to rent due to their rent. I'd like to consider buying a place for $65-75k or so for them to live. In doing so, I'd like to use this as a springboard to get into real estate investing.
Can anyone give me any tips on finding a livable place in a decent neighborhood that is going to be a good investment? I'm in the Houston area, so I think it may be tough. They have a limited amount of time, so I don't have much time to actually dive into books and such again, so I guess it is time for me to just dive in and DO it.
Any help (or even leads!!!) would be GREATLY appreciated.
Are you paying cash or are you going to try to find a property that you can finance? Houston is a big city, are they open to any area?
If you are financing it, you will probably have to put 20% down. Definitely talk to a mortgage broker.
You might consider a duplex and have a built in property manager in your parents. This may make your parents feel better about moving in if they can help you in return.
Get your self a buyer's agent. They will 1) help find you property in the area(s) you are willing/interested to buy in, and 2) set you up with a mortgage broker to determine your borrowing power if you are not cash buyer. Get a recommendation from other home owners you know who used an agent to buy their primary residence. A good buyer's agent does the leg work and the research and shows you things that will work for your purposes.
IMO, there is no need to study REI if your goal is simply to buy a property within your means that works for your parents in their senior years. You may want to consider duplexes as well.
Thanks everyone - yes, I should have mentioned that before - i am a cash buyer and am looking for something in the NW Houston / Tomball / Magnolia / Cy-Fair area. I would want this to be a good investment, and not just an "ok buy". Would a buyer's agent still be my best bet?
I'd say yes best would be to work with an agent. I don't know much about those areas but I remember a couple years back you could get houses in Katy for $60-70k.
If you need an agent referral let me know - otherwise it shouldn't be hard to find one!
Also, an agent should be able to help you find your house, but it's up to you to figure out what you consider to be a "good investment" vs an "ok buy"
@Gregory Tran those days are loooong gone. I just checked the MLS and there's nothing for less than $90K in Katy. Just 2 Short Sales that have been posted more then 5 months ago are in the mid $80K.
Even houses that need a ton of work in the Northern part of Katy are selling for $90-$110K. It's ridiculous how hot the market is in this area. South of I-10 the cheapest you can get a house is around $130-$140K in the older neighborhoods and you'll have to upgrade the interior to bring it up to date.
Money is cheap, see if your parents will qualify for a mortgage still based on their income....I believer FHA still overlooks medical bills...with a gift from you for the downpayment. You could then set up an escrow account to do automatic payments from and both you and your parents could contribute to that. It will be cheaper than renting and you'll hopefully have cash left for repairs or otherwise helping your parents. Chat with a couple of local agents and get some referrals to local lenders.
The OP indicated that he's a cash buyer in the $75K range. In order to buy something in his desired area, he may want to consider borrowing in addition to using his cash. Depending on the loan amount, it might be possible for his parents to pay his monthly payment and have it be the same or less than their current rent. A good mortgage broker can look at the entire picture and see what kind of loan he qualifies for.
As someone else mentioned above, it's the buyer's job, not the agent's, to determine what makes a good investment. This might not be the purchase to focus too much on the investment angle as much as condition and affordability. Buy something in good condition in an area that works for the parents. Buy in an area with stable values. Trying to make it work both as primary residence for the parents and as a cash flowing rental in the distant future might not be the best use of the OP's time and money. Housing the parents affordably seems like the #1 priority.
@Dennis Rodriguez That makes me really sad! I was in NYC at the time but had a house in Katy under contract right around $60k, and got financing rejected bc I was out of state and it would have been my first home. I should have just paid cash!
figured i'd bump this to see if anyone had any leads on anything in the NW houston area. i'm considering upping my investment to 90-95. just want it to be good for my folks, and a good investment.
Just a suggestion if you do not want to get in touch with an agent right away you can use the Har.com App and it will give you access to all the properties listed on MLS that an agent would be able to see. It should give you a broad picture of the prices of the homes that you are looking for in those areas.
Nw Houston/ Cy Fair/ Katy has seen tremendous price increases over the last year. So in that 75k range even cash offer for a distressed house would be low. If you are in a time crunch and you are looking for deals off and on market that you can buy right away, and close it quickly as well; I would suggest using a good local wholesaler. I have used one in the past that I can recommend if you would like the info and want to DM me.
Good luck on your home search, and Happy Hunting.
email sent, thanks!
@Gregory Tran The deals are there in the katy area, for what you are looking for. Have you tried locating an agent that understands the area. Remember CASH IS KING.
i'd love to actually find a wholesaler - how do i go about looking for one of these folks?
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