General Real Estate Investing

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts

Biggest House Expenses: Houston, TX

JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Posted Jun 13 2019, 21:01

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!

User Stats

1,721
Posts
1,332
Votes
Cameron Tope
  • Property Manager
  • Katy, TX
1,332
Votes |
1,721
Posts
Cameron Tope
  • Property Manager
  • Katy, TX
Replied Jun 14 2019, 09:49

@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? 

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Replied Jun 14 2019, 11:57

@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. 

User Stats

44
Posts
31
Votes
Becky Kromminga
  • Katy, TX
31
Votes |
44
Posts
Becky Kromminga
  • Katy, TX
Replied Jun 14 2019, 17:39

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.

User Stats

170
Posts
139
Votes
Brian Foster
  • Investor
  • Cypress, TX
139
Votes |
170
Posts
Brian Foster
  • Investor
  • Cypress, TX
Replied Jun 15 2019, 05:13

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 

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Replied Jun 15 2019, 11:17

@Becky Kromminga  

@Brian Foster

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?

User Stats

170
Posts
139
Votes
Brian Foster
  • Investor
  • Cypress, TX
139
Votes |
170
Posts
Brian Foster
  • Investor
  • Cypress, TX
Replied Jun 16 2019, 05:45

@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

User Stats

1,721
Posts
1,332
Votes
Cameron Tope
  • Property Manager
  • Katy, TX
1,332
Votes |
1,721
Posts
Cameron Tope
  • Property Manager
  • Katy, TX
Replied Jun 18 2019, 03:42
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?

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Replied Jun 18 2019, 11:04

@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. 

User Stats

738
Posts
1,094
Votes
Wes Blackwell
  • Real Estate Agent
  • Phoenix, AZ
1,094
Votes |
738
Posts
Wes Blackwell
  • Real Estate Agent
  • Phoenix, AZ
Replied Jun 18 2019, 12:57
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. 

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Replied Jun 18 2019, 17:03

@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!

User Stats

24
Posts
8
Votes
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
8
Votes |
24
Posts
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
Replied Jun 18 2019, 17:16

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.

User Stats

36
Posts
16
Votes
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
16
Votes |
36
Posts
JoJo Tucker
  • Real Estate Agent
  • Sebastopol, CA
Replied Jun 18 2019, 19:25

@Frank LaViola Thanks for the insight, Frank! Greatly appreciated!

User Stats

1,721
Posts
1,332
Votes
Cameron Tope
  • Property Manager
  • Katy, TX
1,332
Votes |
1,721
Posts
Cameron Tope
  • Property Manager
  • Katy, TX
Replied Jun 19 2019, 04:08
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!

User Stats

170
Posts
139
Votes
Brian Foster
  • Investor
  • Cypress, TX
139
Votes |
170
Posts
Brian Foster
  • Investor
  • Cypress, TX
Replied Jun 19 2019, 04:24

@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. 

User Stats

26
Posts
31
Votes
Sid Jones
  • Richmond, TX
31
Votes |
26
Posts
Sid Jones
  • Richmond, TX
Replied Jun 19 2019, 04:45

@JoJo Tucker

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.

User Stats

24
Posts
8
Votes
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
8
Votes |
24
Posts
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
Replied Jul 4 2019, 18:58

@Cameron Tope we should get together and talk real estate. I live in Firethorne and most of my homes are in Katy North.

User Stats

24
Posts
8
Votes
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
8
Votes |
24
Posts
Frank LaViola
  • Flipper/Rehabber
  • Houston, TX
Replied Jul 4 2019, 19:00

@Sid Jones

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.

User Stats

1,721
Posts
1,332
Votes
Cameron Tope
  • Property Manager
  • Katy, TX
1,332
Votes |
1,721
Posts
Cameron Tope
  • Property Manager
  • Katy, TX
Replied Jul 10 2019, 19:14
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!