Sub $30k properties in Houston, Texas? Where are you investing?

Question

Hello everyone,

I've read all of the debates on whether a $30k property is a good investment or not so I'm sure this post will get some flack. I still consider myself pretty new to Real Estate and I just had a question for the investors here in Houston regarding Sub $30k properties. I'm curious what areas you think this method is possible for a decent cash flowing rental?

Being a wholesaler, I'm coming across these cheaper houses more and more as I'm building my business and I'm wanting to start building my rental portfolio as soon as possible.

Any thoughts and advice on investing in $30k properties in Houston would be highly appreciated.

Thank you all kindly

Ben

Luke H. · Answer

@Benjamin Blackburn, regrading 30K property investment. I purchased a house in Denver Harbor park and it has been the least expensive I've purchased (foreclosure). Yes, the area is still, umm, let's say just around or below working class. Due to that and the property condition my costs (taxes/insurance) are the lowest of all my places. So my profit margin is the best! Money every month...Not to mention it doesn't even have central air!

It was hard to rent at first, but now I get quality tenants that are looking to save money. I have a big fence, alarm system, and good relationship with my neighbors. I don't put anything worth stealing in there.

Hopes this helps.

It was hard to rent at first, but now I get quality tenants that are looking to save money. I have a big fence, alarm system, and good relationship with my neighbors. I don't put anything worth stealing in there.

Hopes this helps.

Jay Hinrichs · Answer

did not know homes went that cheap in Major texas metros.. I would say those would be full blown Ghetto war zone type of properties with all the associated risks. just a guess on my part.

Kevin Coggins · Answer

I believe you'd have to dump a bit of money into the sub 30k houses to make them inhabitable, unless you stumble on something that is somehow in decent condition. It'd make sense return wise if you could buy these and rent them out for cash flow - but to me it seems like it'd be a major headache. If you're well connected down there, maybe could get some inside info an make some speculative plays where the money may end up next (IE Heights, East Downtown, etc).

Benjamin Blackburn · Answer

Hey @Jay Hinrichs Yes that was my view on it as well for here in Houston. I'm just curious if there are some pockets out there that I'm not aware of. Just trying to get my rental portfolio started and become financially free. The plan is to be like you of course ;)

Benjamin Blackburn · Answer

@Cody L. Awesome! thanks a lot for the tips man. These are also some very inspiring and encouraging words that'll keep me going.

Thanks

Benjamin Blackburn · Answer

@Luke H. That is some awesome, inspiring info you gave me. I feel like screening the right tenant is definitely going to be key for investments like these. Thanks a ton!

Mike Reynolds · Answer

Try Galveston county tax roll in Hitchcock. Some down that way that's not a war zone.

Andrew Johnson · Answer

@Benjamin Blackburn Devil's advocate but are you coming across them (as in walked through them) or seeing them out there listed for sale in the market? I'm always weary of homes that cheap because they (usually) come with a big bill attached to them. Buy for $30K, put $30K into it, then find out it's worth $50K. The last deal I looked at was an 8-plex which looked like it needed a good amount of work in the pictures but the price was right. I show up to see it in person and (of course) you have sloped floors, spongy floors, four layers of laminate flooring stuck down, possibly illegal add-on, about 5 different kind of siding, peeling paint, foundation issues, etc. The net result is that what looked like a deal (even after putting money into it now looked like a money pit. Still, it was rented, cash-flowing well "as-is", and I could have ran it (making money) like a slumlord. But if I wanted to keep up with repairs, etc. I would likely have been hemorrhaging cash.

Sub $30k properties in Houston, Texas? Where are you investing?

Sub $30k properties in Houston, Texas? Where are you investing?

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