BRRR Deals in Houton-Katy Area?

9 Replies

I moved to Katy/Houston last month and after purchasing my first SFH with a conventional loan, I quickly realized the best strategy to make money work is to BRRR, so I hit the books and listened to every podcast about BRRR. Knowledge of the strategy was great but after analyzing a couple (100's) of deals, I noticed properties that fit the BRRR criteria in the Houston-Katy area are a bit scarce. Does anyone have suggestions towards finding these deals; how to find them, where to find them, who to network with.

This is the criteria I am using:

SFH, C - B neighborhood, $60K - $90K towards $Purchase + $Rehab

ARV <= 80% of ($Purchase + Rehab + $5K Closing)

LTV after Refinance = 75%

Rental Income >= 1.2% of $Appraised Value

Cash Flow >= $150

Is this criteria unrealistic in the Houston-Katy market? 

Thanks in advance for the feedback!

 Good thing to have in place while you’re looking for these deals is the lender to buy the property the money to fix the property up and the lender to refinance once you fix it up and rented it out make sure you have your ducks in a row because things could go wrong and cost you

I don’t think the market is too hot I just think the deals are hard to come by because of the competition between investors literally everybody is looking for that type of investment but what I would recommend for you is to buy a small multi family and live in one of the units that’s almost just as good as a brrrr...  you can get a great loan I have all of your living expenses drastically decreased given you enough money to save to buy the next one.  Even these types of deals are hard to come by so what I would recommend is networking and mailing non-owner occupied properties that you hand-pick 

Originally posted by @Kojo Orgle:

@Ethan G. Yeah I see that’s the case now in Houston. Do you have any advice on how to stand out, find hidden gems or tweak my criteria?


 

I say don't make any major adjustments. Just keep looking.

You can be 99% assured you won't find anything that approaches this on the MLS, and you probably won't get it through a wholesaler. But what if I told you that a couple weeks ago, I found exactly this very unicorn, right in 77449. And after some careful consideration, I handed it off to a buddy that I met right here on BP (I might get to lend him the renovation funds, we will see).

And how did I find it? I didn't. The realtor that helped me sell my flip project a couple years back called me up and put me onto it. It was a pocket listing. It was me and a couple other investors, and our offer was just barely good enough, so we got the house. Inspection is done and my buddy closes next Friday. He will be all in at 77% or so, and it will cash-flow.

So it can be done. But you really just need to get out and network and meet people.

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