frIENDSWOOD VS PEARLAMD. TX MF PROPERTY INVESTING

13 Replies

Hey guys question!

So I am considering 2 markets in Houston: Friendswood and Pearland.

I am thinking about removing Friendswood from my list. Here is my thought process:

1. Although both Pearland and Friendswood have one of the most expensive properties in Texas ... Friendswood has one of the most expensive markets in the nation

2. Pearland is a larger population and experiencing greater population growth. Pearland is a larger medium-sized city located in the state of Texas. With a population of 113,570 people and 11 constituent neighborhoods, Pearland is the 38th largest community in Texas. Pearland has seen a significant amount of newer housing growth in recent years. Quite often, new home construction is the result of new residents moving in who are middle class or wealthier, attracted by jobs, a healthy local economy, or other amenities as they leave nearby or far away areas for greener pastures. This seems to be the case in Pearland, Friendswood is a medium-sized city located in the state of Texas. With a population of 39,396 people and nine constituent neighborhoods, Friendswood is the 85th largest community in Texas.

3. People in Friendswood commute longer to work compared to their Pearland counter parts.

4. Pearland has a greater diversity of blue and white collar workers

5. Pearland is closer to Texas Medical Center. The Texas Medical Center employs over 106,000 people, hosts 10 million patient encounters annually.

6. 25% of people in Pearland rent while only 21% of people in Friendswood are renters. PLEASE NOTE I'M ONLY INTERESTED IN 1-4 unit properties

7. there is an "Old Pearland" where cheaper properties exist. Also, some of the properties in Old Pearland was damaged by Harvey so there might be a further discount available.

Is my thought process correct in eliminating Friendswood from my potential markets to invest in?

Thanks 

@Jason Ma I actually live in this area. Pearland is growing but is saturated. Manvel is just south of Pearland on 288 and is set to go from 6k residents to 100k+ in ten years.
Originally posted by @Jake Starkey :
@Jason Ma I actually live in this area. Pearland is growing but is saturated. Manvel is just south of Pearland on 288 and is set to go from 6k residents to 100k+ in ten years.

 thank you. What do you mean by it's "saturated"?

Hi Jason, I also live in the area. I would choose Pearland over Friendswood for a few reasons. 

#1 Friendswood floods very bad, and Pearland does not. I've heard many locals complain that the drainage ditches in Pearland drain into the Friendswood creeks, causing a lot of Friendswood to flood very easily. 

#2 Friendswood is home to one of the worse super-fund sites in the nation, and again many locals complain that the clean up was not done correctly. Now the site is flooding, and the city and state are planning to move dirt from the super-fund site to other locations in Friendswood. Although people are fighting this transfer, I wouldn't risk it. 

#3 Friendswood is over priced. 

Originally posted by @Kim Hughston :

Hi Jason, I also live in the area. I would choose Pearland over Friendswood for a few reasons. 

#1 Friendswood floods very bad, and Pearland does not. I've heard many locals complain that the drainage ditches in Pearland drain into the Friendswood creeks, causing a lot of Friendswood to flood very easily. 

#2 Friendswood is home to one of the worse super-fund sites in the nation, and again many locals complain that the clean up was not done correctly. Now the site is flooding, and the city and state are planning to move dirt from the super-fund site to other locations in Friendswood. Although people are fighting this transfer, I wouldn't risk it. 

#3 Friendswood is over priced. 

 How do you feel about League City?

@Jason Ma I recently moved from Pearland to League City so I can touch a little more on the subject. For one like said above Pearland is very nice yes but extremely saturated, the traffic there on it’s own is very bad. The new part of Pearland has more crime rate vs old side of Pearland. I was living there when Harvey hit I personally did not flood but a lot of people did. If you’re looking to hold in Pearland do take in account the property taxes there. They’re probably the highest I’ve seen in the area, before moving to League City I was looking at a new construction home 3600 sq ft 380k purchase price with property taxes at 1450/ month (MUD district makes a huge difference). Here in League City 4000sq ft home 420k purchase price at 650/ month. League City is known to be the safest city with more CHL holders than anywhere else. Houston and surroinding areas are all projected to grow, in my opinion is catch something that is set to grow with lower upfront investment. I forget where I read that Houston is currently at 4-5 million population and at least double in the coming years.

Why would you invest so far out??    There is still tons of sub $50k/door MF inside the loop (or near inside).  Invest in the city core.  BFE is too risky IMO.

Originally posted by @Cody L. :

Why would you invest so far out??    There is still tons of sub $50k/door MF inside the loop (or near inside).  Invest in the city core.  BFE is too risky IMO.

 I've been looking at properties (50-80k) around Bellaire, Meyerland, etc. I have yet to invest in Houston -- what areas do you invest in or are currently looking at?

Originally posted by @Aaron Krawitz :
Originally posted by @Cody L.:

Why would you invest so far out??    There is still tons of sub $50k/door MF inside the loop (or near inside).  Invest in the city core.  BFE is too risky IMO.

 I've been looking at properties (50-80k) around Bellaire, Meyerland, etc. I have yet to invest in Houston -- what areas do you invest in or are currently looking at?

 I just put a 112 unit under contract just outside of Bellair. 

Almost all my stuff is inside the loop. Or just southeast.   This new one will be the first that’s southwest of inner loop. 

I have a map on my company website that shows where they are but I can’t share images on mobile and I don’t want to blast my company URL for fear of it viewing like I’m advertising. I’ll try to post a pic when I’m at my desk tomorrow. 

Originally posted by @Jose Garcia :
@Jason Ma I recently moved from Pearland to League City so I can touch a little more on the subject. For one like said above Pearland is very nice yes but extremely saturated, the traffic there on it’s own is very bad. The new part of Pearland has more crime rate vs old side of Pearland. I was living there when Harvey hit I personally did not flood but a lot of people did. If you’re looking to hold in Pearland do take in account the property taxes there. They’re probably the highest I’ve seen in the area, before moving to League City I was looking at a new construction home 3600 sq ft 380k purchase price with property taxes at 1450/ month (MUD district makes a huge difference). Here in League City 4000sq ft home 420k purchase price at 650/ month. League City is known to be the safest city with more CHL holders than anywhere else. Houston and surroinding areas are all projected to grow, in my opinion is catch something that is set to grow with lower upfront investment. I forget where I read that Houston is currently at 4-5 million population and at least double in the coming years.

 Yes League City is definitely on top of my list. My only concern is there are no major hospitals and universities in League City, and Houston Medical Center is 30 or minutes away. Am I right?

There are no closer economic anchors to League City?

Yes sir you are, I currently live right behind UTMB which is a very well known hospital in the area, I feel it's a comfortable median between Galveston and Downtown. Now that they're finally completing the five lane expansion on 45 and the grand parkway here it'll be a little more friendlier of a commute. I here a lot about Hitchcock Dickinson and typical Friendswood but those are all very common flood zones. We don't expect to see anything close to Harvey for a very long time but the sense of security for families and yourself is priceless. 

Here is a map of most of my properties  (the ones further away from the loop are not shown.  These are just the ones inside of 610 which makes up the border of this image)

Originally posted by @Jose Garcia :

Yes sir you are, I currently live right behind UTMB which is a very well known hospital in the area, I feel it's a comfortable median between Galveston and Downtown. Now that they're finally completing the five lane expansion on 45 and the grand parkway here it'll be a little more friendlier of a commute. I here a lot about Hitchcock Dickinson and typical Friendswood but those are all very common flood zones. We don't expect to see anything close to Harvey for a very long time but the sense of security for families and yourself is priceless. 

thank you 

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