How is the duplex market in Houston?

Question

Hello BP members,
I'm thinking of getting a duplex as my first investment property, living in one of the units for some time, and renting the other unit. Then eventually rent both units is the plan. I was wondering if any of you has experience with duplexes in Houston. Any area I should focus on for my search? Any tip is appreciated.

Nancy Truong · Answer

What's your price point? If you're looking for rentability, check Spring Branch, Energy Corridor, Memorial, Heights, Sugarland, Pearland, Jersey Village, Montrose, Medical Center.

Conner Olsen · Answer

@Jorge Sosa I'm renting my property as a furnished 30+ day rental on Airbnb and the rents are double what they were as a LTR. I'm doing that on a duplex in Austin. It's a great way to make numbers work!

Cody L. · Answer

Best rule of thumb there is:The more likley you are to be in an area that you'd want to live in, the worse the numbers.

So you have to decide what trade off you're willing to make.  Better location or better cash flow.  You don't get both.

Karl McGarvey · Answer

I love the Galveston area for MF, but the properties are more expensive and are usually a house with an ADU as opposed to a true duplex. For example, we have  property for sale right now that has a 3/1 house on the lot with a 2 bedroom apt that sits on top of a 2 car garage and workshop. The older properties in Galveston had a lot of detached garages that people have turned into apartments for supplemental income either via STR or LTR renting.

Alex Ramirez · Answer

I have a 9 unit for sale in Liberty, TX. Investor Special. Let me know if you are interested

Danny Tu · Answer

Hi Karl, what are the insurance rates for properties that have living space in the 100 year flood plain? Correct me if I am wrong, but I believe you can' build new construction without raising the finish floor 2' above the BFE in zone AE. Assuming you purchase an existing home that's in the flood plain you're grandfather from these FEMA guidelines, but that doesn't keep insurances prices from going through the roof.

How is the duplex market in Houston?

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