Can people who are familiar with Houston market please recommend good areas in and around Houston for buying a cashflow property? By good area, I am primarily looking at class A and B properties/tenant areas and SFHs.
Also I understand that currently these areas might not have good returns due to price increases in last few years, but thats ok. I am looking at more longer term plan.
One of the hottest neighborhoods in the city is my own area, Garden Oaks/Oak Forest. But the problem is that property values are skyrocketing and it's hard to find something that would be a good deal for a rental. Most of the rentals seem to be landlords who have owned their property a long time. I do know of a couple of non-MLS properties that could probably be picked up for $200,000 or less.
There are some parts of the Katy area where there are good deals still available. And Spring is another area to look at. I also like Texas City.
Send me a PM if you would like more info.
Hi @Hersh M. , Katy, Cypress and Spring are some areas you may want to look at. Let me know if you need help....I'm a Realtor/Insurance Agent.
@Hersh M. I am also in Houston and would be interested in knowing which nooks are up and coming. I was too young to take advantage of the Heights explosion as well as the post-crash explosion in midtown. I remember when Garden Oaks began to become big but I missed out on that opportunity too. I am more interested in areas that are not on the mainstream radar right now but are promising areas in the next 3-5 years. It would be wise to acquire undervalued rentals in these areas and rent/hold until prices increase.
My thoughts are, pretty much anywhere within the 610 loop and close to a major freeway will be big in the coming decade as more people migrate to Houston. I am personally curious as to what will become of the area just north of downtown between I-45 and US 59 (Northside Village) as I suspect many people wanting to be in the heights will settle just to the east.
Another area of interest is the properties located just east of 288 between 288 and the University of Houston. It is pretty bad in the area now BUT there is hope; I've seen brand new townhouse complexes in the $350s and up erecting just along or a block away from 288 on the east side which is a first! Only problem is a lot of properties over there are not conducive to renting and would be better as buy and hold.
@Larry Hawkins Yeah, me too. But I'm not sure that any of the up and coming neighborhoods inside 610 in Houston have A and B class properties available for cost that you can still cashflow on like @Hersh M. asked. As far as I can tell, you have to renovate a C into an A or B. My agent tells me the area snuggled up to 290 inside 610 is going to be hot.
@Hersh M. From looking a little bit more search and physically driving out to the area, I think there are some potential in the Pearland/Missouri City/Sugarland area, and I heard good things about Spring and Stafford as well. Keep in mind if you are looking for SFH, it'd be different than looking at multi. If you haven't looked at multi, I would take a look at that as well.
@Tim Shin I agree with you that if we are to find a good deal inside of the loop today, we would have to find a C class property and rehab it to a B or A. When you mentioned the neighborhoods from 610 to 290, what neighborhoods are you referring to? Are you referring to greater heights, timbergrove area? Do you have any thoughts on Stafford neighborhood as being a good value neighborhood for multi under 200k?
@Fred Heller thanks for your input. Just curious..in your opinion, would you classify the Alief neighborhood below more like a class C? I found some decent cash flow duplexes in the neighborhood of Shannon Hill Drive, Dairy Brook Dr. S. Dairy Ashford Rd. They are all in the vicinity of Beechnut st., Bissonnet st., W. Bellfort and Synott Rd/Wilcrest Drive.
@Iman Yu Sorry for the late response. I am thinking that neighborhoods like Shepherd Forest and Lazybrook/Timbergrove have some room left to go but 1-4 MultiFamilies are rare there. The Greater Heights don't really have many properties left that you can make money on. What is the Stafford neighborhood in 610? I'm not familiar?
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