New Investor looking to connect
New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes
New Investor looking to connect
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votesWelcome to the journey - you're off to a very strong start! You’ve already defined a clear strategy, which puts you ahead of most new investors.
If you're open to investing outside Texas for better returns or diversification, here are some landlord-friendly, investor-friendly markets with potential for your target cash-on-cash return:
Midwest:
Indianapolis, IN - Strong rents, low property taxes, lots of solid PMs
Many SFHs trade below replacement cost
Cleveland, OH - Low purchase prices = higher CoC
Be selective about neighborhoods and PMs
Southeast:
Birmingham, AL - Cash-flow rich, very landlord-friendly laws
Strong PM options + below market deals still available
Columbia, SC - Military + student tenant base, lower entry points
Appreciation potential and steady rental demand
Tips to Hit Your Return Goals:
Work With Investor-Friendly Agents
Find ones who know how to spot value-add potential or off-market deals
Vet Property Managers Early
They’ll tell you realistic rent numbers and where to avoid
Use Deal Analysis Tools
A simple spreadsheet or calculator like the BiggerPockets Rental Property Calculator helps you keep emotions out of it
Plug in real taxes, insurance, maintenance, vacancy, and PM fees
Look at Light Value-Add Opportunities
Cosmetic upgrades ($5K–$10K) can bump ARV and rent, and still be manageable for a first-timer
Know Your Exit Strategy:
Will you hold long-term, 1031 into larger properties, or refinance in 2–3 years?
This helps guide your risk tolerance and loan structure
You’ve got all the right ingredients - now it’s about finding that first solid deal to prove the model. Let me know if you ever want to go over markets or look at deals side by side - always here to help!
Best of luck,
Melissa
34 Replies
- Real Estate Consultant · Remote · Member since 2025 · 48 posts · 21 votes1y
Hey Thierno, good idea to bring on a PM. When you get to that step, if you ever need consulting feel free to connect!
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes1y
Welcome to BiggerPockets and best of luck investing!
- 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey Thierno,
for your first buy-and-hold, look for below-market deals in high-demand areas. Consider out-of-state investing for better cash flow, lower property prices, and higher rental yields.
With 20% down, aim for 10-12% cash-on-cash returns, or 8% if low-risk. but be sure to vet property management companies if you're outsourcing, especially in out-of-state markets.
Kerlous Tadres | Reafco Real Estate541 Reviews- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Kerlous Tadres:
Hey Thierno,
for your first buy-and-hold, look for below-market deals in high-demand areas. Consider out-of-state investing for better cash flow, lower property prices, and higher rental yields.
With 20% down, aim for 10-12% cash-on-cash returns, or 8% if low-risk. but be sure to vet property management companies if you're outsourcing, especially in out-of-state markets.
Hi Kerlous you are absolutely right. I have to make sure I know what I am getting into when doing out of state investment
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
There are literally thousands of investors looking to do the exact same thing you've stated here.
So, how hard are you willing to work to beat them to properties that meet your criteria?
Logical Property Management4.9460 Reviews- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1yWilling to work pretty hard to get things done
Quote from @Drew Sygit:
There are literally thousands of investors looking to do the exact same thing you've stated here.
So, how hard are you willing to work to beat them to properties that meet your criteria?
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Thierno Gueye:
Willing to work pretty hard to get things doneQuote from @Drew Sygit:
There are literally thousands of investors looking to do the exact same thing you've stated here.
So, how hard are you willing to work to beat them to properties that meet your criteria?
So, what's your specific plan to do so?
Logical Property Management4.9460 Reviews
- 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Thierno Gueye!
Sounds like you've got a clear game plan, which is huge for getting that first deal done right. With your focus on SFHs, a 20% down conventional loan, and a strong CoC target, you might want to look at out-of-state markets where those numbers still pencil out. Memphis is one to consider! Properties are still affordable (many in the $100K–$150K range), and with the right team in place, you can hit that 10–12% CoC mark, especially in B-class neighborhoods with low vacancy and solid tenant demand. It's also very investor-friendly with strong property management infrastructure, so outsourcing the day-to-day is totally doable. Plus, buying below market is still possible here, especially when working with investor-focused teams that have access to deals before they hit the public market. Let me know if you'd like to see what that looks like in real numbers! We help first-time investors get going the right way here all the time.
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Bernice Retzloff:
Hey @Thierno Gueye!
Sounds like you've got a clear game plan, which is huge for getting that first deal done right. With your focus on SFHs, a 20% down conventional loan, and a strong CoC target, you might want to look at out-of-state markets where those numbers still pencil out. Memphis is one to consider! Properties are still affordable (many in the $100K–$150K range), and with the right team in place, you can hit that 10–12% CoC mark, especially in B-class neighborhoods with low vacancy and solid tenant demand. It's also very investor-friendly with strong property management infrastructure, so outsourcing the day-to-day is totally doable. Plus, buying below market is still possible here, especially when working with investor-focused teams that have access to deals before they hit the public market. Let me know if you'd like to see what that looks like in real numbers! We help first-time investors get going the right way here all the time.
Hi @Bernice Retzloff that's a great recommendation. I have indeed thought about other markets like Arkansas, Indiana. It seems like there are plenty of opportunities in Memphis as well. The only concern I have is that this would be an out os state investment for me. As a 1st time investor, is it risky?
- Houston, TX · Member since 2015 · 261 posts · 170 votes1y
your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools.
- 1yHolly BrownBusiness MemberReal Estate Agent · Houston, TX · Member since 2019 · 190 posts · 137 votesMost of these replies are all AI generated general advice and simply annoying. Gustavo here is speaking from experience, sharing great advice and I support it.
Quote from @Gustavo Delgado:
your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools.
Houston is quickly turning into a buyers market. We have been submitting (very kind) but very low offers and sellers are talking to us, because we might be the first offer they have had in months. Play the numbers game or work with a good wholesaler that actually sells deals that work. I have an investor right now crushing the 8% COC on LTR with the BRRRR method. I have others turning to in-fill development, and some doing build to rent. Deals are out there, you just have to blend with the strategy that's currently working. I also agree with Gustavo's locations, more-so to stay out of the deep coastal areas that are experiencing far greater increase in insurance premiums, but also to their point, paying attention to school zoning for anything outside the 610 loop is a smart move.
I host meetups monthly if you would ever be interested in joining to learn what other investors are doing right now. Just send me a quick DM with your email address and I will add you to our invite list. - New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Gustavo Delgado:
your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools.
Thanks for the feedback
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Gustavo Delgado:
your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools.
Gustavo, thanks for the info. I am indeed looking into Katy
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Welcome to the journey - you're off to a very strong start! You’ve already defined a clear strategy, which puts you ahead of most new investors.
If you're open to investing outside Texas for better returns or diversification, here are some landlord-friendly, investor-friendly markets with potential for your target cash-on-cash return:
Midwest:
Indianapolis, IN - Strong rents, low property taxes, lots of solid PMs
Many SFHs trade below replacement cost
Cleveland, OH - Low purchase prices = higher CoC
Be selective about neighborhoods and PMs
Southeast:
Birmingham, AL - Cash-flow rich, very landlord-friendly laws
Strong PM options + below market deals still available
Columbia, SC - Military + student tenant base, lower entry points
Appreciation potential and steady rental demand
Tips to Hit Your Return Goals:
Work With Investor-Friendly Agents
Find ones who know how to spot value-add potential or off-market deals
Vet Property Managers Early
They’ll tell you realistic rent numbers and where to avoid
Use Deal Analysis Tools
A simple spreadsheet or calculator like the BiggerPockets Rental Property Calculator helps you keep emotions out of it
Plug in real taxes, insurance, maintenance, vacancy, and PM fees
Look at Light Value-Add Opportunities
Cosmetic upgrades ($5K–$10K) can bump ARV and rent, and still be manageable for a first-timer
Know Your Exit Strategy:
Will you hold long-term, 1031 into larger properties, or refinance in 2–3 years?
This helps guide your risk tolerance and loan structure
You’ve got all the right ingredients - now it’s about finding that first solid deal to prove the model. Let me know if you ever want to go over markets or look at deals side by side - always here to help!Best of luck,
Melissa
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Melissa Justice:
Welcome to the journey - you're off to a very strong start! You’ve already defined a clear strategy, which puts you ahead of most new investors.
If you're open to investing outside Texas for better returns or diversification, here are some landlord-friendly, investor-friendly markets with potential for your target cash-on-cash return:
Midwest:
Indianapolis, IN - Strong rents, low property taxes, lots of solid PMs
Many SFHs trade below replacement cost
Cleveland, OH - Low purchase prices = higher CoC
Be selective about neighborhoods and PMs
Southeast:
Birmingham, AL - Cash-flow rich, very landlord-friendly laws
Strong PM options + below market deals still available
Columbia, SC - Military + student tenant base, lower entry points
Appreciation potential and steady rental demand
Tips to Hit Your Return Goals:
Work With Investor-Friendly Agents
Find ones who know how to spot value-add potential or off-market deals
Vet Property Managers Early
They’ll tell you realistic rent numbers and where to avoid
Use Deal Analysis Tools
A simple spreadsheet or calculator like the BiggerPockets Rental Property Calculator helps you keep emotions out of it
Plug in real taxes, insurance, maintenance, vacancy, and PM fees
Look at Light Value-Add Opportunities
Cosmetic upgrades ($5K–$10K) can bump ARV and rent, and still be manageable for a first-timer
Know Your Exit Strategy:
Will you hold long-term, 1031 into larger properties, or refinance in 2–3 years?
This helps guide your risk tolerance and loan structure
You’ve got all the right ingredients - now it’s about finding that first solid deal to prove the model. Let me know if you ever want to go over markets or look at deals side by side - always here to help!Best of luck,
Melissa
Hi Melissa, I will definitely keep you in mind moving forward
- Lender · Member since 2025 · 10 posts · 8 votes1y
Hey Thierno, If you ever want to talk through different loan options, like DSCR loans or other investor-focused financing that might offer more flexibility, I'm happy to share what I know. Feel free to reach out anytime.
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Thierno Gueye:
Hi
I am a new real estate investor based in Texas, actively seeking my first buy-and-hold property
1/ Interested in single-family homes (SFHs).
2/ Currently considering standard financing (conventional loan) with 20% down as my investment strategy
3/ Focus on Buy Below Market, if Possible
4/ Target: 10–12%+ Cash on Cash; I will consider 8% if it is a low risk
5/ Plan is to outsource property management
Hi Thierno! That sounds like a solid approach and a great buying criteria—SFHs with conventional financing and a focus on strong cash-on-cash is a smart game plan, especially if you’re looking to build long-term wealth. If you’re open to investing out of state, I’d definitely suggest taking a serious look at Columbus, Ohio. A lot of investors I work with who are based in higher-priced or more competitive markets (like parts of Texas) have found great success here. The macroeconomics are super strong—massive job and population growth, and big-name companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG are investing billions into the region. It’s still affordable too—you can regularly find SFHs in the $120K–$180K range that meet or exceed the 1% rule and hit 10–12% cash-on-cash returns, especially if you’re buying below market and doing some light value-add work. Plus, it’s very landlord friendly and easy to plug into with strong local property managers. Happy to connect and answer any questions you have
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Real Estate Agent · Houston, TX · Member since 2022 · 135 posts · 84 votes1y
Hey @Thierno Gueye welcome to BP. @Holly Brown above is correct in that inventory is sitting for longer here in our Houston market and there are deals to be had whether on market or off. Have you considered a duplex to help achieve your COC return goal? I like duplexes because it helps lower the risk of the property by having two sources of rent.
Have you considered building your own properties to rent out? This is a longer and more advanced process but with the right people on your team, you can easily see huge forced appreciation gains and you have a NEW rental product at the end of it so Hardly any CapEx expenses for the near term.
I am a central Houston agent, investor and developer; feel free to reach out with any specific questions.
- Chris Kersey
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Chris Kersey:
Hey @Thierno Gueye welcome to BP. @Holly Brown above is correct in that inventory is sitting for longer here in our Houston market and there are deals to be had whether on market or off. Have you considered a duplex to help achieve your COC return goal? I like duplexes because it helps lower the risk of the property by having two sources of rent.
Have you considered building your own properties to rent out? This is a longer and more advanced process but with the right people on your team, you can easily see huge forced appreciation gains and you have a NEW rental product at the end of it so Hardly any CapEx expenses for the near term.
I am a central Houston agent, investor and developer; feel free to reach out with any specific questions.
- Chris Kersey
Hi Chris, I have considered duplexes but never gave it serious thoughts but I like the points you made. I will definitely reach out
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 467 votes1y
Welcome, Thierno! You've got a solid strategy, SFHs with a focus on buying below market and targeting strong cash-on-cash returns is a great foundation. Using conventional financing works for your first deal, but as you grow, you might also consider DSCR loans for faster scaling without income verification.
Outsourcing property management is smart if you want to stay hands-off and focus on growing your portfolio.
- 1yTodd AndersonPro MemberReal Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
Welcome to the BP community.
It looks like you've put together a nice tight buy box. On the forum, you will get a lot of opinions on where the best market to make your first purchase is. I think this is the most important step. For buy and hold work properly you need to be in a market that is growing in population and employment. It is also good to look for market that has good landlord tenant laws. Whether this be next to you in Houston, or in another market depends only on your investment goals.
I would caution you that if you were looking for an area that has good metrics and will get in the path of appreciation it may be hard to find 10% COC at 20% down. There are many deals available on the market but if you don't solve for one of the bigger problems in the market being high interest rates it's hard to make things cash flow at the levels you're looking.
I would be happy to discuss what we are seeing more and what we are being able to solve for.
Best of luck in your REI journey
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Todd Anderson:
Welcome to the BP community.
It looks like you've put together a nice tight buy box. On the forum, you will get a lot of opinions on where the best market to make your first purchase is. I think this is the most important step. For buy and hold work properly you need to be in a market that is growing in population and employment. It is also good to look for market that has good landlord tenant laws. Whether this be next to you in Houston, or in another market depends only on your investment goals.
I would caution you that if you were looking for an area that has good metrics and will get in the path of appreciation it may be hard to find 10% COC at 20% down. There are many deals available on the market but if you don't solve for one of the bigger problems in the market being high interest rates it's hard to make things cash flow at the levels you're looking.
I would be happy to discuss what we are seeing more and what we are being able to solve for.
Best of luck in your REI journey
Hi Todd, You are absolutely right. The high interest can make things tricky; I am open to reconsidering some of my metrics. I will reach out
- Property Manager · Houston TX · Member since 2025 · 20 posts · 11 votes1y
+1 for @Holly Brown & @Gustavo Delgado
Houston has plenty of opportunities at multiple price points for an active investor. While some markets like Little Rock or Memphis may have lower entrance costs, they aren't without their own risks, and Houston has historically provided consistent and stable appreciation without the major dips smaller markets tend to endure.
This is certainly the first time in a while I'd consider us to be entering a buyers market, so timing should be great for those willing to look.
Insurance is going to be a big factor in your opportunities here, so I'd suggest focusing on the western half of the Greater Houston area. Generally better school districts, more development, lower insurance rates, etc.
Richmond on the South all the way up through Conroe should net you some good rental potential.
If you're interested in a local property managers perspective of any rentals you're considering, I'd be more than happy to chat with you about them. I've been managing all over Houston since 2010, so pretty familiar with markets.
- New to Real Estate · Houston, TX · Member since 2025 · 10 posts · 12 votes1y
Quote from @Jim Berman:
+1 for @Holly Brown & @Gustavo Delgado
Houston has plenty of opportunities at multiple price points for an active investor. While some markets like Little Rock or Memphis may have lower entrance costs, they aren't without their own risks, and Houston has historically provided consistent and stable appreciation without the major dips smaller markets tend to endure.
This is certainly the first time in a while I'd consider us to be entering a buyers market, so timing should be great for those willing to look.
Insurance is going to be a big factor in your opportunities here, so I'd suggest focusing on the western half of the Greater Houston area. Generally better school districts, more development, lower insurance rates, etc.
Richmond on the South all the way up through Conroe should net you some good rental potential.
If you're interested in a local property managers perspective of any rentals you're considering, I'd be more than happy to chat with you about them. I've been managing all over Houston since 2010, so pretty familiar with markets.
Hey Jim, getting a perspective from a property manager would be great. I will reach out to you
- Member since 2025 · 52 posts · 30 votes1y
Welcome to BP! I wish you the best of luck investing!
- 1yDaniel TanasaBusiness MemberRealtor · Houston, TX · Member since 2019 · 351 posts · 174 votes
Quote from @Thierno Gueye:
Hi
I am a new real estate investor based in Texas, actively seeking my first buy-and-hold property
1/ Interested in single-family homes (SFHs).
2/ Currently considering standard financing (conventional loan) with 20% down as my investment strategy
3/ Focus on Buy Below Market, if Possible
4/ Target: 10–12%+ Cash on Cash; I will consider 8% if it is a low risk
5/ Plan is to outsource property management
Hello Thierno,
Welcome to Bigger Pockets,
Since you are local in Houston, I think buying here locally will be a good way to go about it. Especially since Houston has so many good things to go for it.
As far as the return you're looking for, after you pay a property management company, that is pretty hard to find in today's market and most of the time those kind of deals don't sell on the MLS.
I don't want to discourage you, start underwriting deals and you can adjust based on what you see in the market. Is good you have a solid plan, now go put it to work.
Let us know how it goes. Feel free to reach out if you need any help and I will be happy to point you in the right direction. Good luck!
- Realtor · McAllen, TX · Member since 2025 · 141 posts · 58 votes1y
Start making friends. You are off to a good start, networking on the BiggerPockets site. Make some friends with real estate agents, make friends with property managers. You probably already know this, but property managers have investors who are looking to sell, and they have the numbers for you since they manage the property and keep track.
Join some investor groups.
- 1yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
That's a solid start—you've clearly thought through your criteria. In Texas, especially in markets like DFW, San Antonio, or parts of Houston, you can still find SFHs with 8–12% CoC returns, but you'll need to be strategic and move quickly on undervalued deals. Look for distressed properties in transitioning neighborhoods or off-market deals where you can negotiate below asking. With property management in place, make sure to budget around 8–10% of monthly rent and factor that into your returns. DM me and I'll point you in the right direction with market insights, deal flow, and investor-friendly agents.
Good luck!
Wale — Houston-based investor agent working with buy-and-hold clients.
NETWORTH BUILDERS5236 Reviews - Real Estate Agent · Houston, TX · Member since 2025 · 59 posts · 31 votes1y
Hey Thierno, welcome to the real estate investing journey! Sounds like you’ve got a solid strategy mapped out already, especially with the focus on buying below market and targeting strong cash-on-cash returns.
I’m also based in Texas, both an investor and licensed agent, and work closely with others pursuing similar buy-and-hold goals. Happy to connect and talk through deals, markets, or general investment insights. Let me know if you’d ever want to chat by phone or meet up!
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