Houston, TX 2-4 Unit Multi-Family

33 Replies

@Stefan Stankovic a report just came out by Population and Survey Analysts (PASA)that they are predicting 43,763 new housing units to open in the Katy ISD area in the next decade. Not to mention the extension of the Westpark Toll way westward to Fulshear.

@Stefan Stankovic

One of the apartments will require less than 15k in work to get to where we need it. The other will require over 100k. Two very different projects.

@ Brian Foster do you know the applicable zip codes for the Grand Parkway area? I am originally from Houston, but haven’t lived there for years. Lots of changes, but I’m interested in investing back and home and possibly moving back.

@Brian Foster do you know the applicable zip codes for the Grand Parkway area? I am originally from Houston, but haven’t lived there for years. Lots of changes, but I’m interested in investing back and home and possibly moving back.

@Stefan Stankovic With a complete renovation, done well, added HVAC, and maybe a security system, I do think it could pull B tenants. The access to downtown is really excellent from there, and with the exception of that property and the one next door to it, there is clearly a lot of pride of ownership on the block. Some people will be comfortable living in 2nd Ward, and others will not. "Comfort" is pretty subjective. Like I said, it needs a lot of work if it's going to pull B tenants....however, it is clearly starting out with C (or D) tenants and you will have to ride out the transition time. It looks from this thread like you are planning on living in your investment property, so the relevant question becomes: "Are YOU comfortable living in this area?"

And I do want to clarify that the units we were able to view were kept clean and tidy. I probably should not have tossed a D suggestion in there, but the rooster walked right up to my very boot-tips in the driveway, puffed up, and crowed, which means it is a fighting rooster, and the unit we were not able to view had multiple pit bulls inside. I drew the conclusion that if the tenant is fighting the rooster, he is likely also fighting the dogs. I could be way off on my assumptions. 

Since I'm showing all my cards anyway....other observations: the back porch is falling off and will need to be rebuilt. There is a toilet in the front yard and the whole front yard smells like cat piss, car parts are stacked on the side of the house (the dump won't accept car parts,) the roof is in decent shape but kinda weird because they used two different kinds of materials, and one is supposed to be for totally flat roofs even though the section it's on is slightly pitched. It needs gutters, new windows....the whole 9 yards, so to speak. No telling what an inspector might dig up, and there's a water trail down the siding so checking for termites is a priority. 

The location is great because it is near a bike trail and a commuter metro stop. It's also the worst-looking house on the block, so fixing it up will improve the impression of that whole section of the neighborhood. The house next door looks pretty rough, too, though.

The unit on top of the garage is in comfortably livable condition now. 

Good luck in your endeavors. I'll probably see you at one of the meets around town. Happy Holidays!

Liz

@Kevin Wood Good luck with those two projects! I'll keep in touch and see how the renovation is going soon.

@Elizabeth A Johnson I am really serious about finally taking action in the next three months, so I am willing to live in the area if the numbers work. I will definitely be kicking out any dog and rooster-fighting tenants should I inherit them... lol. I will schedule a showing most likely so I can learn to spot all these things on my own. It does freak me out to take on a project with a ton of renovation needed as my first, but I need to determine whether that's a limiting belief or reasonable worry on my own. I can also consider using your points to bring the price down should I seriously consider it. 

Thanks again for all of this advice. I'm going to consider the same points moving forward in the area. BTW, I am helping @Matthew Gullo to market the H.I.T. (Houston Investment Team) meetup on the events page if you can make it to that on Jan. 17. Otherwise, hope to see you at another soon. Happy Holidays!

Originally posted by @Stefan Stankovic :

@Kevin Wood Good luck with those two projects! I'll keep in touch and see how the renovation is going soon.

@Elizabeth A Johnson I am really serious about finally taking action in the next three months, so I am willing to live in the area if the numbers work. I will definitely be kicking out any dog and rooster-fighting tenants should I inherit them... lol. I will schedule a showing most likely so I can learn to spot all these things on my own. It does freak me out to take on a project with a ton of renovation needed as my first, but I need to determine whether that's a limiting belief or reasonable worry on my own. I can also consider using your points to bring the price down should I seriously consider it. 

Thanks again for all of this advice. I'm going to consider the same points moving forward in the area. BTW, I am helping @Matthew Gullo to market the H.I.T. (Houston Investment Team) meetup on the events page if you can make it to that on Jan. 17. Otherwise, hope to see you at another soon. Happy Holidays!

Stefan, at our age I think something that needs a lot of work makes sense ( if bought right) For me personally, some of my biggest unanswered questions are due to lack of construction experience. Even after reading Jay Scotts book on estimating rehab costs, you just never know. If you are willing to live there like you say, and can afford to do so, meaning this first one wont financially devastate you. It is definitely something to look into. Everyone calls it the school of hard knocks, but seriously would be beneficial to the rest of your career in investing. 

There are tons of what if's with population, crime, school expansion, but learning to fix something is worth its weight in gold as long as you buy right!

Now, I am only putting my own beliefs to be true as i sit on the sidelines without any experience except my primary residence. but I will tell you first hand, we have made massive improvements on this house we live in. 

we bought a house with 2 vacant lots next door. i have a big dog and wanted a fence. quotes came in from 7-10 for privacy fence.

Doing the job scared me. I spent about two weeks on youtube. My buddies dad runs a parker lumber. went to him with my measurements. 

Borrowed my father in laws tractor. and built over 500 ft of privacy fence myself. (network and resources are huge)

The process was grueling and at times i wanted to quit because maybe that 7000 was worth it. all in all i finished the fence, in material i spent 2700 and i paid a highschool kid 200 bucks to finish putting my middle screws in along the whole fence due to running out of time with the birth of my daughter! a bottle of whiskey to my father law, a bunch of sweat and blood, and becoming the guy that paid the highschool kid who needed money ( used to be me ) good money for an easy job . 

moral of that story is i saved 5 to 8 thousand dollars,***** if quotes were right i have no idea****. But now i wont need to know that information because i can do it myself. 

Now i am a fencebuilder. any house i ever go to or buy, i got the fence building feather in my hat. my next project is adding a bathroom possibly to my pier and beam house.... we will see how that goes

Looking forward to meeting you soon!

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.