Cleveland, OH · Member since 2018 · 133 posts · 59 votes
Hi I'm considering a move to Houston for work and plan to remain active in investing. Which cities seem to be giving the best returns for rental income and appreciation in Texas currently without any signs of slowing down over next 5 years? Any info is appreciated.
@Alex Price. Your Question - "Which cities seem to be giving the best returns for rental income and appreciation in Texas currently without any signs of slowing down over next 5 years?"
Moving to Houston will be a good start! But the answer to your question is unknown and unknowable! Too many moving parts to be able to define with certainty what happens to any city within next five years. Having said that, I think you could start with the cities in and around Houston that have done well in the past: The Woodlands, Conroe, Spring, Katy, Tomball, Friendswood, etc, etc.
Hopefully, more knowledgeable Houston investors will chime in and add to the list of possible good places to invest.
@Alex Price. Your Question - "Which cities seem to be giving the best returns for rental income and appreciation in Texas currently without any signs of slowing down over next 5 years?"
Moving to Houston will be a good start! But the answer to your question is unknown and unknowable! Too many moving parts to be able to define with certainty what happens to any city within next five years. Having said that, I think you could start with the cities in and around Houston that have done well in the past: The Woodlands, Conroe, Spring, Katy, Tomball, Friendswood, etc, etc.
Hopefully, more knowledgeable Houston investors will chime in and add to the list of possible good places to invest.
@Alex Price. Your Question - "Which cities seem to be giving the best returns for rental income and appreciation in Texas currently without any signs of slowing down over next 5 years?"
Moving to Houston will be a good start! But the answer to your question is unknown and unknowable! Too many moving parts to be able to define with certainty what happens to any city within next five years. Having said that, I think you could start with the cities in and around Houston that have done well in the past: The Woodlands, Conroe, Spring, Katy, Tomball, Friendswood, etc, etc.
Hopefully, more knowledgeable Houston investors will chime in and add to the list of possible good places to invest.
Thanks Jim, I've been looking online but it's nothing like having boots on the ground and being in the area.
you can find them all here...? Sounds like you are just a little worried about the move because you are not familiar with it. There’s lots of opportunity here. Take a few weekends of driving around Houston and you will find the good and bad areas.
@Alex Price Houston is a great place to live and invest, but geographically speaking it is massive. @Jim Cummings and @Mitchell Benson are right that Houston has many opportunities both inside the loop, the suburbs and even out to adjacent areas of the city limits. As an example, Conroe, Texas (just north of Houston) was ranked fastest growing city in America from 2015 - 2016!
If you are moving to Houston for work I would recommend figuring out your personal housing that accommodates your work situation first. Depending on where you land there is a good chance that investment opportunities are all around you, and you can work and invest close to home. I live in North Houston and have at least 5 prime investment markets within 40 minutes of my house. (The Woodlands, Spring, Magnolia, Conroe, Tomball).
Keep in mind your investment strategy (flood reno, long-term rentals, flips, vacation rentals condos, multi-family) as well, not every part of Houston will be prime for all the different type of real estate investments.
@Sarah Montes is right, Texas is Hot, both figuratively and literally ;) Dallas and San Antonio are amazing markets as well. If you have a solid investment strategy and some good connections you should do well.
@Alex Price Houston is a great place to live and invest, but geographically speaking it is massive. @Jim Cummings and @Mitchell Benson are right that Houston has many opportunities both inside the loop, the suburbs and even out to adjacent areas of the city limits. As an example, Conroe, Texas (just north of Houston) was ranked fastest growing city in America from 2015 - 2016!
If you are moving to Houston for work I would recommend figuring out your personal housing that accommodates your work situation first. Depending on where you land there is a good chance that investment opportunities are all around you, and you can work and invest close to home. I live in North Houston and have at least 5 prime investment markets within 40 minutes of my house. (The Woodlands, Spring, Magnolia, Conroe, Tomball).
Keep in mind your investment strategy (flood reno, long-term rentals, flips, vacation rentals condos, multi-family) as well, not every part of Houston will be prime for all the different type of real estate investments.
@Sarah Montes is right, Texas is Hot, both figuratively and literally ;) Dallas and San Antonio are amazing markets as well. If you have a solid investment strategy and some good connections you should do well.
Todd that's very exciting to know. I'll be in Houston towards the end of the month, would love to meet if you have time.
@alex price as everyone has mentioned above, Houston is BOOMING and rebuilding after Harvey. It doesn't matter where you land, which ever direction you look -- there is going to be plenty of opportunity, it's just going to come down to how you want to invest.
I work for a wholesale brokerage that covers Harris, Galveston and parts of Brazoria Counties, if you have any questions on anything, feel free to reach out!
@Alex Price. Your Question - "Which cities seem to be giving the best returns for rental income and appreciation in Texas currently without any signs of slowing down over next 5 years?"
Moving to Houston will be a good start! But the answer to your question is unknown and unknowable! Too many moving parts to be able to define with certainty what happens to any city within next five years. Having said that, I think you could start with the cities in and around Houston that have done well in the past: The Woodlands, Conroe, Spring, Katy, Tomball, Friendswood, etc, etc.
Hopefully, more knowledgeable Houston investors will chime in and add to the list of possible good places to invest.
This is it!
I don’t think you mentioned how you planned to invest once you get here? Or what you are comfortable with? You mention rentals, sfr? Multi? How little or how much equity are you hoping to jump into? Do you need it at driving distance from your home or work?
Take some time with the city, it’s beautiful suburbs and the knowledge an agent or an investor with similar strategies may be willing to provide.
@Leroy Cooper thanks. @Jorge De Jesus I plan to start investing in 1 - 4 unit fixer uppers to turn into rentals. After 10 - 20 good deals with residential I will delve into 5 - 20 units. My goal is cash flow and it doesn't need to be at driving distance as I plan to hire property management. That is my strategy.
Like people have been saying Texas can be a great place to invest. You really don't have to go far. I know a few investors throughout Houston and they do enough deals in small pockets throughout the city that they don't really stray too far. Houston is such a massive city. All you have to do is pick an area to focus on and really get to know it. Each place around Houston has different characteristics that can completely change how you invest. In Galveston, my focus is on vacation rentals and if I crossed the bridge it would be completely different. Pick an area and find what works! There are always deals for those who look.
Timothy Church great advice and when I get down there I will explore a lot of the different areas. Never realized you could fox’s on vacation rentals. Thanks! Brian Foster thanks I will check this out. I really appreciate the input from everyone, it’s given me a lot more clarity coming from the Midwest.
@Alex Price - How is your journey going and what areas are you investing in? I'm considering investing in Houston (or open to other locations in Texas) and would be interested to hear what you've found as you've researched and analyzed the different areas.
San Diego investor here. I own several buildings in Houston and buying more all the time. I love it. I’ve looked at so many other places and haven’t found the same returns. Not only that but you have red state laws protecting you and a good “story” in terms of job / population growth.
Unless Texas goes blue it’ll be a great place to invest for a long hike.
@Leroy Cooper thanks. @Jorge De Jesus I plan to start investing in 1 - 4 unit fixer uppers to turn into rentals. After 10 - 20 good deals with residential I will delve into 5 - 20 units. My goal is cash flow and it doesn't need to be at driving distance as I plan to hire property management. That is my strategy.
Alex,
As many people have stated above Houston was a great place to invest for cashflow over the past few years - notice that a several of the investors who commented mentioned buildings they already own.
However, recently the numbers for cashflow are getting squeezed - there's a wave of new multi-unit inventory, massive appreciation over the past decade, wholesalers want more, sellers want more, taxes, insurance, & interest rates are rising. Buying a few years ago is WAYYYYY different than buying in today's market.
Houston, like all markets, is capable of producing great deals - you just need to look a little bit harder.
I'm seeing more success in our midwest (Ohio) rentals, as appreciation hasn't pushed asset prices up as much as other parts of the country.