Houston Area Multifamily & HAR Question

6 Replies

Newbie question here. I’m in the Houston area and have a goal of buying my first property in the first half of 2018. I have been browsing through HAR and evaluating properties for the practice and see if I can get a grip on pricing trends. Within Houston you don’t see hardly any of the HAR listings giving details on current rental income. They will say if they are leased or not but nothing on rent. When I’ve browsed other local markets on HAR such as College Station almost all of the multifamily properties will list the rental income. So I guess the question is, if a listed multifamily says it leased is it acceptable for me to contact the listing agent and asking for current rental income information? I don’t really know the dos and don’t. Thanks BP!

Hi Ronnie,

Yes, if the listing says it’s leased I don’t see any harm in asking the agent how much. 

You can ask for the lease amount, term, and end date. That’s all very important for your evaluation. 

Also, when you sign a contract to buy, it’s important to get copies of the leases and maybe do your own screening of the tenants. Because once you buy a place, you’re stuck with whomever is inside so make sure you’re ok with that. 

Good luck!

Joel

I haven't seen any good deals on har for small multi family in Houston. I've been trying to drive by multi families to see what kind of information I can find on the property.

Then from there see if I can get the owner interested in selling

Effram Barrett

    @Ronnie Howard

    There are many agents on this board that can help you pull rental information. I have my license for my property management business and can help you see the rents for a multifamily you were interested in. When you are ready to buy feel free to reach out to @Sharon Tzib . Even though I have my own license I use her for all my transactions because she is great at what she does.

    @Effram Barrett

    I don't think that is the case. I bought a 12 and a 10 unit off of har.com in August. Both of them were at an 8 cap at current rents. We've purchased $3M in small multifamily in Houston in the last 2 years. All of it off of har.com

    Kevin Wood, Contractor in TX (#000000)

    @Ronnie Howard    This is a huge pet peeve of mine. When I'm looking for properties for my investor clients, most of the time the rental income is not listed. That means I have to contact the listing agent to get the current rent roll and wait for them to get back to me.

    Whenever I list a rental property, I always include the current rent roll. What could be more important information than the revenue generated by the property?

    Having said that, many times the rent roll is listed in the private agent remarks. And they'll frequently show the terms of the current lease like MTM or "lease expires on such and such date." This is the area that you will not see on the consumer HAR website. Only HAR members can access it. This is one of the reasons why you, as a buyer, should have your own agent working on your behalf rather than trying to do it yourself.

    @Ronnie Howard unfortunately I think by and large most real estate agents aren't investor-friendly, and therefore they have no idea how to market a multi-family property. They are seemingly unaware of their target market and what information an investor needs to properly qualify a property, like rent roll, p&l, who pays what utilities, any outstanding maintenance issues, etc. When clients, like @Kevin Wood , go through their daily searches I have set up for them and see a multi they like, the first thing I almost always have to do is get in touch with the listing agent and try to track down all this information. It's annoying, but it's also part of the value I bring to my clients (thanks for the kind words too Kevin!).

    I have often wondered about the owners of these buildings, that they don't think it's important to list with an agent who can effectively market income property and make it easy for a buyer to buy. They really are doing themselves a disservice. 

    Bottom line, you really should have your own buyer's agent in your corner helping you to gather data and evaluate these properties, especially if you are new. 

    Sharon Tzib, Real Estate Agent in TX (#653488)

    Thanks everybody. I appreciate the input.

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