Is Waco becoming a good place to invest?

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Is Waco becoming a good place to invest?

Daniel Mills
Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes

Hi Guys,

I am wondering what locals think of Waco as a place to invest. A read some posts from a few years ago which seemed to conclude that it didn’t have a lot of the fundamentals necessary for a good market. But, there have been a couple of things that have peaked my attention: 

1. The popularity of the show “Fixer Upper”

2. Tim Ferris mentioning in his BP appearance that he felt that high prices in Austin would push people to Waco.

3. The head of a major turnkey operator in Dallas/Huston I think on Kathy Fetke’s podcast saying that he thinks it’s almost the end for the markets he works in because the prices are getting too high, but Waco might be an area he moves next.

4. Just saw news that AT&T is releasing its new 5G service to Atlanta, Dallas and Waco. 

If only Elon Musk would build a hyperloop...

What do you think? Any local market specialists out there?

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y

@Daniel Mills everything you mentioned is hear say or based on "celebrity" opinion.

Stick to fundamentals. What's the job market like, who are the major employers, is there positive job and population growth? 

Who cares what some HGTV show did. Maybe a couple hundred people move there because of that. Now if a major employer announces an expansion in the area, that could be interesting. Doesn't have to be Elon Musk.

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  • Marshall Hooper
    Investor · Houston, TX · Member since 2017 · 129 posts · 62 votes
    8y
    Not a great time for Waco right now. Home prices are inflated from the fixer upper show. They’ll pull back now that the show has stopped airing.
    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    @Daniel Mills everything you mentioned is hear say or based on "celebrity" opinion.

    Stick to fundamentals. What's the job market like, who are the major employers, is there positive job and population growth? 

    Who cares what some HGTV show did. Maybe a couple hundred people move there because of that. Now if a major employer announces an expansion in the area, that could be interesting. Doesn't have to be Elon Musk.

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    4Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    8y

    @Daniel Mills the population of Texas has doubled in the past 40 years.  90% of all that growth has occurred within 50 miles of I-35.  It certainly depends on what type of investing you are looking at but even at the worst times in the past 40 years Texas has been above market.  I can site TONS of numbers but the main thing is that you can find deals anywhere. Just stick to what you know and study and that will lead you to the right market to invest in.

    4Reply
  • Taylor Philley
    Rental Property Investor · Austin, TX · Member since 2015 · 36 posts · 20 votes
    8y

    @Daniel Mills I've been eyeing Waco as well since I live in Austin and continue to lose deals to 12 other offers. I like Waco because the prices seem reasonable compared to my city, plus I strongly believe that anything along the IH-35 corridor that bridges the gap between major metros (so Waco/Temple between Dallas and Austin and San Marcos all the way down to San Antonio) will inevitably grow. I also personally like college towns! Baylor is strong and will continue to be a big player with both their undergrad university and law school, so I do think it can be a good market. I haven't bought anything there yet, just browsing and researching still but my interest has peaked for that area.

    3Reply
  • Omar Khan
    Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    @Daniel Mills I'd have to agree with @Jordan Moorhead. Celebrity opinions don't matter a lot when it comes to RE. You might have seen an uptick but I doubt it will be sustainable based only on the opinions of a few celebrities and/or podcast (as influential as it is). 

    As @Andrew Postell said, it's hard to have messed up investing near the I-35 over the past 40 years. 

    Develop an investment criteria that works for you and stick to it. This is Texas - you will find a ton of deals. 

    0Reply
  • Sterling WilliamsPro Member
    Real Estate Agent · San Antonio, TX · Member since 2017 · 104 posts · 89 votes
    8y
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  • Sterling WilliamsPro Member
    Real Estate Agent · San Antonio, TX · Member since 2017 · 104 posts · 89 votes
    8y

    The Texas Triangle has a multitude of economic drivers fueling growth and investors have a tremendous amount of options. As stated above, there are way too many numbers that can be rattled off, but I’ll just attach this video which does a good job illustrating why Texas is a great place to invest for the long-term. 

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Being a baylor grad I find this thread pretty cool. Major employers in Waco are baylor university, L3 communications and about 30 minutes outside of Waco you’ve got Spacex (Elon musk) I think economically the city will still struggle as a whole a bit, but there has been a lot of rejuvenation and change in the last few years. Major rehab on the downtown for instance.
    1Reply
  • Roy Gamiz
    Investor · Spring, TX · Member since 2016 · 16 posts · 13 votes
    8y
    The Baylor market is struggling since it has been over built in the last couple of years. There aren’t enough students for all the beds that are available. The recent trend is new builds for 6 bed/6 baths but they are difficult to rent out from what I’m seeing.
    3Reply
  • Robert Pfenninger
    Real Estate Investor · Waco, TX · Member since 2017 · 85 posts · 39 votes
    8y

    I've heard the same thing @Roy Gamiz said about the Baylor market from other investors. However, development it seems is in full swing for Baylor housing anyways. I believe Waco is a great place to invest. SpaceX is only getting bigger, Magnolia isn't going anywhere (the Gaines just announced a 15 episode behind the scenes series), expanding suburbs around Waco, TSTC, MCC and their partnership with multiple four year institutions, Baylor (still recovering), and Waco is smack dab in the middle of Austin and Dallas on the I35 corridor. Most of this is obvious but I think it makes investing here an obvious choice as well :-)

    0Reply
  • Tricia Vitela
    Rental Property Investor · Lubbock, TX · Member since 2018 · 13 posts · 10 votes
    8y
    I spoke to a Waco-based investor at a conference the other week, and he mentioned that the Silos now get more visitors than the Alamo! Long term rentals might be hit-or-miss with inflated prices at the moment, but we know hear things are cyclical. Maybe look at doing a short-term AirBnB type rental? You could pick up tourists, and also the game-day visitors. Never underestimate the draw of a game day in a college town. :)
    1Reply
  • Kevin Brown
    Investor · Brenham, TX · Member since 2015 · 21 posts · 19 votes
    8y
    I’m personally looking in Killeen and Waco. Killeen is cheaper and is now going to be home to all three branches of the military. Some areas are pretty rough but you can go a couple miles and be good.
    1Reply
  • Nick Sheveland
    Rental Property Investor · Austin, TX · Member since 2018 · 128 posts · 84 votes
    8y

    Definitely drive around Waco a bit to learn your areas if possible. There are some really nice areas and there are some absolute terrible war zones that I don't even feel safe in at noon on a Sunday and I'm a pretty big guy that can hold my own. Haha. Also just because it's downtown, by the school, or by the Brazos River doesn't make it "nice" or "safe." Just do your homework like any good investor should and you will likely be okay. I'm by no means discouraging REI there. It's an area I'm also interested in.

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