Looking to invest in Houston. Iv heard good things but dont know much yet other than iv been to the city a few times and really like it. How good are the returns on rental property? I am from Cali and looking to take my money elsewhere. I will be visiting Houston in a few weeks to maybe look at some investment property if someone can help me out. Thanks in advance!
Depending on the area, you can do quite well. Be ware of high taxes, however. We just moved from Cypress, which is on the NW side of Houston. We thought about renting our home when we moved, but knew the asking rent would be too high to cover mortgage and taxes. We had to figure a minimum of $1,000 per month toward taxes alone. The oil and gas industry is doing a bunch of layoffs (tens of thousands) so home prices are dropping. The best advice I can give you is to find the area you would like to focus on and do your research on that area. Harris County is huge, then you have the immediate outskirts that can go from busy to rural very quickly. The Grand Parkway (99) is being built in stages on the far west loop, connecting The Woodlands, down to Sugarland. It will open tons of land, and will be connecting at 45 in The Woodlands by the new Exxon headquarters. Schools in The Woodlands (I think Conroe ISD), Cy-Fair ISD, and Katy ISD are sought after school districts, if you are looking to factor that in. There is an Energy Corridor off of I-10 in the Memorial/Katy area, as well as a lot of medical from Memorial in toward downtown for the Medical Center. Anything inside the loop (610) will be pricier than if you are outside the loop. Almost every major highway is under construction at the moment (I don't miss that) and traffic is always a joy to be stuck in. Keeping the homes you consider, near major roadways is a curse, but almost a necessity for someone needing to traveling to get to work. Good luck!
I buy and hold in The Woodlands/Montgomery county but due to higher tax rates, choose to stay out of Harris county except for flipping - feel free to call/email and I will discuss the market at length
@Roy Lhanie as a realtor working with a lot of investors in Houston, I can tell you there are plenty of areas in Houston at prices and with tax rates that will still cash flow. Cypress hasn't cash flowed for quite some time due to issues mentioned above (high taxes and high tax rates). I think the sweet spot for rentals is in the $125-165K tax range. Also Klein ISD is another very favorable area.
Many of my clients are in the oil and gas field, and they have said most of the job loss is occurring with field jobs. I'm not seeing price reductions in the range I mentioned above; mostly in the higher priced homes. Some of that, however, has nothing to do with oil and gas and everything to do with the time of year, as slow downs this time of year are normal. I will be posting HARs stats for September as soon as they come out.
Feel free to contact me if you care to discuss the Houston market more.
I'm a Real Estate Investor Wholesaler here in Houston, TX and if you would like to apart of my active buyer's list, contact me. If you have interest in merely building business relationships, do the same