FRIENDSWOOD VS PEARLAMD. TX MF PROPERTY INVESTING

8 Replies

Hey guys question!

So I am considering 2 markets in Houston: Friendswood and Pearland.

I am thinking about removing Friendswood from my list. Here is my thought process:

1. Although both Pearland and Friendswood have one of the most expensive properties in Texas ... Friendswood has one of the most expensive markets in the nation

2. Pearland is a larger population and experiencing greater population growth. Pearland is a larger medium-sized city located in the state of Texas. With a population of 113,570 people and 11 constituent neighborhoods, Pearland is the 38th largest community in Texas. Pearland has seen a significant amount of newer housing growth in recent years. Quite often, new home construction is the result of new residents moving in who are middle class or wealthier, attracted by jobs, a healthy local economy, or other amenities as they leave nearby or far away areas for greener pastures. This seems to be the case in Pearland, Friendswood is a medium-sized city located in the state of Texas. With a population of 39,396 people and nine constituent neighborhoods, Friendswood is the 85th largest community in Texas.

3. People in Friendswood commute longer to work compared to their Pearland counter parts.

4. Pearland has a greater diversity of blue and white collar workers

5.  Pearland is closer to Texas Medical Center.  The Texas Medical Center employs over 106,000 people, hosts 10 million patient encounters annually.

6. 25% of people in Pearland rent while only 21% of people in Friendswood are renters.  PLEASE NOTE I'M ONLY INTERESTED IN 1-4 unit properties


7. there is an "Old Pearland" where cheaper properties exist. Also, some of the properties in Old Pearland was damaged by Harvey so there might be a further discount available.

Is my thought process correct in eliminating Friendswood from my potential markets to invest in?

Thanks

I think you're over complicating your analysis. You're not living in the property. If the property has a good cap rate and you can withstand any reduction in rents or vacancy increase from an economic downturn, what difference does it make where the property is? Both of those suburbs are very popular. These areas are similar enough that I think you're splitting hairs.

I wouldn't eliminate Friendswood for the simple fact that it IS the most expensive markets. Deals may be harder to find, but there are areas of Friendswood that were also impacted by the flood, too. Everything you said was true about Pearland, also. It may be worth directing more of a focus towards Pearland, but if the opportunity presented itself and I had to choose between a property in Pearland or Friendswood, I would take Friendswood all day. (Assuming the numbers worked)

You seem familiar with the area. Are you from here or have you lived out here before? Another area I am focusing on out here is League City. Great school district with a lot of growth. There are some older areas that seem to be popping up some solid deals.

Originally posted by @Jason Hall :

I think you're over complicating your analysis. You're not living in the property. If the property has a good cap rate and you can withstand any reduction in rents or vacancy increase from an economic downturn, what difference does it make where the property is? Both of those suburbs are very popular. These areas are similar enough that I think you're splitting hairs.

 Thanks I just want to reduce my markets to a manageable amount.

Originally posted by @Chris Nowlin :

I wouldn't eliminate Friendswood for the simple fact that it IS the most expensive markets. Deals may be harder to find, but there are areas of Friendswood that were also impacted by the flood, too. Everything you said was true about Pearland, also. It may be worth directing more of a focus towards Pearland, but if the opportunity presented itself and I had to choose between a property in Pearland or Friendswood, I would take Friendswood all day. (Assuming the numbers worked)

You seem familiar with the area. Are you from here or have you lived out here before? Another area I am focusing on out here is League City. Great school district with a lot of growth. There are some older areas that seem to be popping up some solid deals.

 I have never stepped foot there before.

Another investor told me to look into League City as well. Are there more 2-4 units in League City?

Originally posted by @Jason Ma:
Originally posted by @Chris Nowlin:

I wouldn't eliminate Friendswood for the simple fact that it IS the most expensive markets. Deals may be harder to find, but there are areas of Friendswood that were also impacted by the flood, too. Everything you said was true about Pearland, also. It may be worth directing more of a focus towards Pearland, but if the opportunity presented itself and I had to choose between a property in Pearland or Friendswood, I would take Friendswood all day. (Assuming the numbers worked)

You seem familiar with the area. Are you from here or have you lived out here before? Another area I am focusing on out here is League City. Great school district with a lot of growth. There are some older areas that seem to be popping up some solid deals.

 I have never stepped foot there before.

Another investor told me to look into League City as well. Are there more 2-4 units in League City?

 I ran a list on list source for the area, but only included 4-12 units. There were roughly 350-400 that came up between Friendswood, League City and a few of the surrounding towns (All of which have pretty strong markets). 

League City, Parts of Dickenson, Parts of Texas City, Seabrook, Kemah, Clear Lake (Houston), are all in the same "wheelhouse" for the most part. You will find that the rents in these area's for multi-income properties are very close when it comes down to the actual numbers. You get a little more rent in Friendswood, but you pay a little more to get it. In the end, any of those cities I listed would be a "hot" and great market for you to invest in small multi-income properties.