Multifamily Living in Houston

9 Replies

Hey Houston investors!! I am new to real estate investing, and I have been soaking up tons of information on the BP Podcast. I am looking to start investing in small multifamily homes here in Houston. Anybody here involved in this area can give me some advice?? Unlike other large cities, Houston doesn't seem like a place that would do well in multifamily living. Correct me if I am wrong. 

What advice are you seeking?  How did you come to the assumption that Houston small multifamily investing doesn't or will not do well?  What is your small multifamily investment strategy and investment criteria?

Houston is the 4th largest city in the nation with 2.3 million people with projected positive job growth.  Lot's of small multifamily properties around with numerous examples of people investing in it.  

Hi Micheal, I was looking to invest in Fourplexes, Triplex's or Duplexes. When I think about this living situation, I view it as more of a "college living" situation, I guess my perception is hindering me. I mostly look in the university areas for these types of properties, but I keep finding deals on the outskirts of town and I'm a little leary that I may have trouble filling these units! Yes there is so much room for growth here, I just want to make sure i'm focusing on the right market. I would love to manage a small commercial property of maybe 10-15 units to start but I don't have the capital for the 20% down payment, so I want to stay in the lane that I can afford. 

Originally posted by @Chantea Cooper :

Hi Micheal, I was looking to invest in Fourplexes, Triplex's or Duplexes. When I think about this living situation, I view it as more of a "college living" situation, I guess my perception is hindering me. I mostly look in the university areas for these types of properties, but I keep finding deals on the outskirts of town and I'm a little leary that I may have trouble filling these units! Yes there is so much room for growth here, I just want to make sure i'm focusing on the right market. I would love to manage a small commercial property of maybe 10-15 units to start but I don't have the capital for the 20% down payment, so I want to stay in the lane that I can afford. 

Yes, I suggest you change that perception or shift your mindset.  Quads, Trips, and Dups serve every type of potential tenant.    I have a quad that is well suited for workforce housing tenants, no where near a major college/university, not in the urban core, and have been there for years.  Depends on the submarket.  I suggest educating yourself in the different Houston submarkets and target the ones that fit your investment criteria.  

I agree with @Michael Dang . There are small multi families that are well suited for young professionals or even older families. 

@Chantea Cooper , competition in MFHs are high but that doesn't mean you can't find good deals. What are your criteria? price range? location? house hack vs pure investment? turnkey vs forced equity? number of units? 

@Micheal Dang thanks so much for the advice, i figured a shift in thought would do the trick! 

Hi Shayan, yes the competition is very high, seems like as soon as one is listed on the MLS the offers are flowing heavily! I would like to stay under $210K, in a middle class area. I plan to house hack initially, with a 2-4 unit, forced equity. I plan to work with a wholesaler to land an off market deal, that doesn't required a ton of work. Luckily my stepfather and uncle are both contractors , so a small rehab should be OK.