Multifamily Investing in Houston/ San Antonio/ Austin/Dallas

[Harshavardhan Mukkera]

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

[Cody L.]

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.