Anyone have opinions on the Huntsville, TX area?

[Joseph Ellengar]

I live in Houston. I own a small townhouse in the Houston metro (midtown) and am looking at purchasing my first rental properties. Cap rates are very poor in Houston proper. Huntsville seems good - it's a college area (Sam Houston State University) and I've seen a number of properties that look like I can get at least 1% of purchase price / month. Any opinions on this area? Would it be too difficult for me to manage a property that's an hour and a half drive away? My wife an I like the Huntsville area and wouldn't mind driving up there once a month.

Thanks.

[Dylan Eldred]

I think Huntsville is a great area, I have looked at some properties there before. If you find a good deal and set up systems I think it sounds like a good idea.

[Lauren Cutchen]

I am actively searching for multi-family deals in Huntsville, TX. Potentially a couple good leads for off-market deals. I like it for the college town rental. It's more affordable and you can still pull in decent cash flow. Let me know if you want to chat sometime.

[Peyton Leal]

Huntsville and Conroe for immediate areas. If you're willing to do long distance investing there are other Texas options. 

[Steve Taylor]

I grew up in Huntsville and worked at Sam Houston for a few years.  I would lean on other's investment advice, as I am new to real estate investing.  We are just now looking for our first rental properties.  .. What I can say is that it seems like SHSU is always needing more housing and that there are seven prisons in the town, meaning that many people work for TDCJ that need affordable housing.  ... A few weeks ago we saw a small 4 unit on 20th Street for sale.  I don't see it  listed now, but there was another small multi-family next door to it not listed with a sign up front.  We didn't investigate because we are focusing on single family.  Just FYI.  

[Lane Kawaoka]

That is getting to turd-tiary markets. The furthest I would go would be Conroe where we have an 140 unit apartment out there.

[Christopher Burton]

Originally posted by @Steve Taylor:

I grew up in Huntsville and worked at Sam Houston for a few years.  I would lean on other's investment advice, as I am new to real estate investing.  We are just now looking for our first rental properties.  .. What I can say is that it seems like SHSU is always needing more housing and that there are seven prisons in the town, meaning that many people work for TDCJ that need affordable housing.  ... A few weeks ago we saw a small 4 unit on 20th Street for sale.  I don't see it  listed now, but there was another small multi-family next door to it not listed with a sign up front.  We didn't investigate because we are focusing on single family.  Just FYI.  

 I’m closing on that small 4 unit in a week and a half. I made an offer on the red brick building as well, but I wasn’t able to get any interest at a price that made sense for me.

This is my first purchase in Huntsville. I also own some rental property in New Waverly and east of Conroe. It’s definitely true that properties around Conroe rent faster than in New Waverly. I expect Huntsville to be somewhere in between. The trade off the way I see it is potentially higher cash flow in more “turd-tiary” markets, but less stability in the economics long term than markets closer to hubs like Houston. We’ll see how it all plays out!

[Steve Taylor]

@Christopher Burton Congratulations! That’s awesome! I hope it cash flows even more that you’re expecting.

[Christopher Burton]

@Steve Taylor that’s the plan! After a handful of years of doing this, it’s funny to look back to my “numbers”. They’re good to have to keep me honest when evaluating properties, but the categories of expenses are wildly off year to year. I’m sure over decades they’ll settle in and not be such wild guesses. Best of luck with your real estate investing journey as well!

[Jeff Castro]

@Lauren Cutchen hello, im interested in ur multifamily in tx. Can we chat?

[Vivi Liu]

@Lauren Cutchen

I am interested in multifamily. Can we chat?

[Wale Lawal]

I know out of state that manage their property, so it's doable. You should also add Conroe, TX to your search.