Multifamily Investing in Houston/ San Antonio/ Austin/Dallas

General Real Estate Investing
5yFollow

Multifamily Investing in Houston/ San Antonio/ Austin/Dallas

Harshavardhan Mukkera
Member since 2021 · 3 posts · 3 votes

Hello!

I'm Houston local. I'm planning on getting into real estate. I’m looking to get into MF real estate investing (duplex or more units) and Houston/San Antonio seems to be more within my budget. It feels like a good starting point for cashflow to purchase more rental properties in the future (SF or MF).

Couple of question?

1. Am I risking too much for a newbie by getting into MF rather than start off small with SF ?

2. What are the key details to look out for on the property selection?

3. Are there any sequence of steps that are recommended while getting started on MF properties ?

4. Are there any recommendations on the experienced relator in Houston area ?

I’d really appreciate any tips or advice!

Thank you

2Reply
54 views

Most Popular Reply

Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
5y

If you're in Houston, buy in Houston.  You're IN the city that most people from OUTSIDE Texas want to invest in

1) No, start with MF if you have the capital to do so

2) Location, rent relative to price, relative to others in the area, price relative to comp sales.   i.e, don't pay $80k/door for something in a $50k/door submarket even if the numbers work.  Don't be afraid to pay $100k/door for $1000/month rents if people are paying $120k/door for $1000/month rents in that submarket.   But don't pay $60k/door for $700 rents if people are paying $50k/door for $700/rents.   tldr: It has to not just be a good deal but it should be a good deal relative to what's been traded in that market

3):  yes.  Find the deal, Buy it

4) Realtor won't help you in MF. Serach MLS/loopnet. Find brokers selling what you want. Buy what they have or show them proof that you're legit so they show you something off market.

Good luck.

3Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    5y

    If you're in Houston, buy in Houston.  You're IN the city that most people from OUTSIDE Texas want to invest in

    1) No, start with MF if you have the capital to do so

    2) Location, rent relative to price, relative to others in the area, price relative to comp sales.   i.e, don't pay $80k/door for something in a $50k/door submarket even if the numbers work.  Don't be afraid to pay $100k/door for $1000/month rents if people are paying $120k/door for $1000/month rents in that submarket.   But don't pay $60k/door for $700 rents if people are paying $50k/door for $700/rents.   tldr: It has to not just be a good deal but it should be a good deal relative to what's been traded in that market

    3):  yes.  Find the deal, Buy it

    4) Realtor won't help you in MF. Serach MLS/loopnet. Find brokers selling what you want. Buy what they have or show them proof that you're legit so they show you something off market.

    Good luck.

    3Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Harshavardhan Mukkera

    I will strongly advise you start from Houston for your first purchase since you are local. You can expand to other markets once you have the experience and systems in-place to leverage on. Like @Cody L. mentioned, Houston is always on the top 3 list for most Out-Of-State Investors - There is a reason for this. So take advantage of it.

    My response/opinion to your questions:

    1. Am I risking too much for a newbie by getting into MF rather than start off small with SF ?

    No you are not. It's a great strategy to start with Multi-Family if you have the education and the capital to do so. 

    How to Make Big Money in Small Apartments - By Lance Edwards and Ron LeGrand is a great book to start with.

    2. What are the key details to look out for on the property selection? Location, Quality of Potential Tenants, Crime Rate, Price to Rent Ratio etc. The book will educate you more.

    3. Are there any sequence of steps that are recommended while getting started on MF properties ? Not really Just know what you want and go for it.

    4. Are there any recommendations on the experienced relator in Houston area ? Yes, I am an Investor-Agent and Investor myself, I believe I can help.

    Let's connect and see how I can help you.

    Goodluck.

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
  • Harshavardhan Mukkera
    OP
    Member since 2021 · 3 posts · 3 votes
    5y

    I appreciate you taking time and giving me some valuable suggestions. Thanks a lot @Cody L. and @Wale Lawal

    I have considerable initial capital but I have to finance for a MF. I heard that, for a newbie into real estate investing, getting loans for a MF can be a challenge. Is that true ?

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Harshavardhan Mukkera This is not true If you have your 20% Down-Payment and your DTI is less than 30% you will be fine.

    But you need to understand how to analyze a small multi-family property to know if it's even a deal before you deploy your resources on it.

    Goodluck

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free