Biggest House Expenses: Houston, TX
18 Replies
JoJo Tucker
Real Estate Agent from Sebastopol, CA
posted over 1 year ago
Hello BP Community,
I am finishing up the book, Long-Distance Real Estate Investing, by David Greene and he speaks about the biggest house expenses that pertain to specific geographical areas (frozen pipes that burst in cold areas, roof wear-and-tear from rain in Florida, etc.). I wanted to know what kind of big-ticket expenses realtors, investors, property managers, and residents have experienced in Houston. I spoke with a Houston realtor recently and she said that the life expectancy for a roof in Houston is much less than average.
What are other big ticket house expenses that are frequent in Houston?
Thank you!
Cameron Tope
Property Manager from Katy, TX
replied over 1 year ago
@JoJo Tucker one of our biggest expenses is AC units due to the hot summers. I can't really say for sure but roofs haven't been that much of a problem. If a hurricane comes through then insurance helps cover the cost of a new roof.
I see you're in California. Do you invest in Houston?
JoJo Tucker
Real Estate Agent from Sebastopol, CA
replied over 1 year ago
@Cameron Tope Thanks for the reply. I am new to the RE investing world, but my energy has been primarily focused in Houston for potential buy-and-holds.
Becky Kromminga
from Katy, TX
replied over 1 year ago
It's not a really big ticket item, but the majority of properties that you will buy in Houston will likely need some sort of foundation work. The soil here causes a lot of settling.
Brian Foster
Investor from Cypress, Texas
replied over 1 year ago
I would agree with previous posts. Soil has high clay content and it expands and contracts with moisture. Over time [decades] it is common to see foundation issues and those are usually addressed by having foundation piers installed. That stops movement of the slab. This video explains it pretty well: https://www.youtube.com/watch?v=m5z6GDuGtCE
Our HVAC systems run for more days/months per year than normal so they wear out faster than cooler/dryer climates.
Roofs hold up pretty well here and the occasional severe weather we get [thunder/hail] can shorten roof life but it is also often addressed with insurance claims
JoJo Tucker
Real Estate Agent from Sebastopol, CA
replied over 1 year ago
Thank you for the responses! The video attachment stated the foundation piers and installation costed around $5200. Is that a comparable cost of what one may expect in Houston?
Brian Foster
Investor from Cypress, Texas
replied over 1 year ago
@JoJo Tucker That's about right for a 1,500-1,700 ft2 3/2/2. Most companies charge by the pier so it just depends how many you need. Average size home usually between 30-35 piers
Cameron Tope
Property Manager from Katy, TX
replied over 1 year ago
Originally posted by @JoJo Tucker :
@Cameron Tope Thanks for the reply. I am new to the RE investing world, but my energy has been primarily focused in Houston for potential buy-and-holds.
Just curious, what made you select Houston?
JoJo Tucker
Real Estate Agent from Sebastopol, CA
replied over 1 year ago
@Cameron Tope I live in California and knew I wanted to invest somewhere on the West. I researched various demographics of different areas and refined my search to Phoenix, Austin, Denver, and Houston. I think what attracted me to Houston was the average housing price for 3bd/2ba, economic stability, economic diversity, along with other statistics.
Wes Blackwell
Real Estate Agent from Phoenix, AZ
replied over 1 year ago
Originally posted by @JoJo Tucker :
@Cameron Tope I live in California and knew I wanted to invest somewhere on the West. I researched various demographics of different areas and refined my search to Phoenix, Austin, Denver, and Houston.
Pretty much all the southwest states will have shorter AC life-expectancy than average. Phoenix had 128 days over 100 degrees last year, I'm sure Texas has similar numbers.
JoJo Tucker
Real Estate Agent from Sebastopol, CA
replied over 1 year ago
@Wes Blackwell Thanks for the reply, Wes. I'm sure the southwest heat is a little different than what I am accustomed to in Northern California haha. I really appreciate your time!
Frank LaViola
Flipper/Rehabber from Houston, TX
replied over 1 year ago
Living in Houston and having rental properties it is definitely AC--lasts about 10 years, Roofs--can last 20 years but check hail damage, and crazy as it sounds water heaters. Water heaters are placed in the attics of the majority of the homes and they need to be replaced every 10 years. If it bursts its an expensive damage cleanup.
JoJo Tucker
Real Estate Agent from Sebastopol, CA
replied over 1 year ago
@Frank LaViola Thanks for the insight, Frank! Greatly appreciated!
Cameron Tope
Property Manager from Katy, TX
replied over 1 year ago
Originally posted by @JoJo Tucker :
@Cameron Tope I live in California and knew I wanted to invest somewhere on the West. I researched various demographics of different areas and refined my search to Phoenix, Austin, Denver, and Houston. I think what attracted me to Houston was the average housing price for 3bd/2ba, economic stability, economic diversity, along with other statistics.
Houston has definitely been a great city to invest.
Best of luck!
Brian Foster
Investor from Cypress, Texas
replied over 1 year ago
@JoJo Tucker Take a look at the Greater Houston Partnership's website: https://www.houston.org/
Some really great info on the economy. i like them because when something is wrong [oil and gas layoffs] they don't ignore it or run from it. And luckily we've had way more good news than bad news for the last 2 decades ;-)
@Frank LaViola Water heater in attic is not bad and you just need to keep drain pan line clog free. Any water coming out of that pipe [usually found at soffit] is a sign you've got a problem. Easy fix. Calcium build up is biggest culprit, cuts life if you don't open valve and purge annually.
Sid Jones
from Richmond, TX
replied over 1 year ago
Something I haven’t seen mentioned yet: do your due diligence on flood zones. Do NOT buy in the 100 year flood plain or worse. There have been a series of catastrophic flooding events over the past few years and as a remote investor you really need to avoid that risk.
Frank LaViola
Flipper/Rehabber from Houston, TX
replied over 1 year ago
@Cameron Tope we should get together and talk real estate. I live in Firethorne and most of my homes are in Katy North.
Frank LaViola
Flipper/Rehabber from Houston, TX
replied over 1 year ago
So a devils advocate thought on floods. If you have flood insurance you can actually make more money long term. I watched people get maxed out by Insurers during Harvey. If you can rebuild cheaper it could be a home run.
Cameron Tope
Property Manager from Katy, TX
replied over 1 year ago
Originally posted by @Frank LaViola :
@Cameron Tope we should get together and talk real estate. I live in Firethorne and most of my homes are in Katy North.
I'm at all the networking events! Come out and chat!
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