I am not ready to jump on a deal yet but have been analyzing properties for practice. I found this property at https://www.trulia.com/property/5034676902-6700-Ri...
It is a 2 bed 2 bath town home. Are town homes desirable as a rental property in Houston and is a 2 bed/2 bath an attractive combo?
This property seems to be in a low crime and good school rating location so seems to be a nice one...
Would anyone consider a property like this?
Townhouses are perfectly fine. They are way more attractive than a large apartment building. I would say they fall into the same area as a duplex. They are usually larger and feel more like a home than an apartment. Many of them also have a small yard.
My unsolicited but friendly advice is that this is not a great property for an investment. It popped up on my radar earlier this week but I dismissed it quickly. The average rent in the community is $1300, and there is a $175 monthly maintenance fee. At $135,000 purchase price, this just doesn't have the return my investor clients are looking for.
I just sold a townhouse to one of my investors just south of 1960 off Ella. It's 3BR/2.5 bath, 2 car garage, and backyard. Purchase price was $115,000. I just signed a tenant to a lease for $1400.
Thanks Fred. Just ran the numbers for the Richardson property and there does not seem to be a lot of cash flow coming in even at a purchase price of 115k.
Do 2BR/2 Baths do okay in the houston market?
I just added another reason I dislike townhomes/condos for any type of purchase. I was watching a webinar of an apartment complex sponsor who was going over how he purchased the majority of the townhome units in a complex and when he did he put a $5,000 assessment on each of the units. This caused the remainder of the townhomes to either pay, get foreclosed on, or sell to him at a discounted rate. Add in the fact that the HOA's can be mismanaged either being far too cheap when it comes to maintenance or far too expensive and I'm out.