New to U.S. investing

[Ken Lacroix]

I am an investor living in Ottawa, Canada with sole ownership of 2 triplexes in Saint John, New Brunswick and am in the final stages of setting up my U.S. corporate structure to scale up my portfolio exponentially. My focus is the multi-family asset class using a buy-and-hold strategy. My target markets are Houston, Dallas, and Corpus Christi. My BuyBox in these markets includes the following criteria: 25-50 units, built after 1982, low rise, C class with mild to medium renovations, etc. 

I am on FB where we can connect and look forward to meeting you in person at a multi-family investor event. 

[Bruce Lynn]

Welcome to Texas

Are you buying cash or financing?

Are you wanting to buy 25 duplexes, or one development with 25-50 units?

Are you planning to take these down yourself or have partners participate.

Personally I would probably stay away from almost anything around Corpus.  Insurance rates will probably eat you alive right now.  

Houston seems to be struggling some.  Rents seem to be stagnating.   You may be able to pick up properties at a discount in Huston right now, but from what I see they are very asset management intensive.  Depending on the deal I would suggest you be living in the area to be intensively involved to get these assets thru the next 2-3 years.  I don't think even the best PM perform in a way to implement your business plan successfully unless you find that needle in a haystack.

I am invested in properties in both places and out of everything I have those two are probably the worst performers and take the most times.  Those markets are very very different from Dallas.

Dallas may have some opportunity depending on what you want to buy.  Deals are tough though.  I don't see much distress yet...and maybe that never really happens.  Financing is tough.  Even in Dallas I think AM will be key, but perhaps less intensive than Houston and CC.   I still believe though it will be perhaps tough to improve values with only PM implementing business plans and maybe 1x a month conference calls for AM.   Those days are probably over for a while.

Just my thoughts....and obviously very deal dependent.   I am in Dallas and have been for the most part of 40+ years.   Also invested in both Dallas and FTW, and those will probably be the best performers long term out of where I invest.