Favorite Places To Invest In TX

21 Replies

Hey BP fam! Curious... what are your favorite areas in TX to invest in and why?

If you're a newbie and just getting started... where are you planning to invest and why?

San Antonio has some good deals still, as does the out skirts of Houston and Dallas. Here in Austin it is Hot Hot Hot. You don't find deals here you make them. How do you plan on looking for deals? What kind of REI are you looking for?

In the path of progress.....that's how Ross Perot said is how you make a billion dollars investing in real estate.

Also biased...  Houston.   So many inexpensive areas that are next to expensive areas so you can buy under market and get some appreciation.

But honestly, if I were in Dallas I'd invest there.  If I were in Austin, I'd invest there.  But since I'm in San Diego, the 'where' in Houston has no geographical advantage to me in terms of proximity.  I was going to Houston a lot, bought properties, and it's worked out. 

I definitely try the path of progress approach. You need to couple that with something that will at least cash flow the property, otherwise you're making a major gamble and paying for it, but getting the progress right leads to MASSIVE gains with enough time.

So I see some great advice to invest in the path of progress, where do you Texans believe Ross would advise a guy looking for cash flowing, appreciation potential, single family homes today?

Hi Hunter, 

I was living in Los Angeles before moving out to Texas to begin my real estate investing, and I was looking at the 4 big markets, Austin, Dallas, Houston, and San Antonio, and I ultimately decided Dallas was the best in my own opinion for various reasons. I personally comfortable investing in markets where corporate jobs are expanding/relocating, large net migration in population, and good rent ratio relative to purchase price. I also look at other factors such as competition, school districts, new developments and the age of population. I would suggest to look at these trends in TX areas you are considering investing, and you'll naturally start filtering the good areas. 

Hope this helps. 

Jorge

@Account Closed my favorite place is going to be where I have the most knowledge and understanding in. Where I live. Where I have the best network of individuals. You are only as great as your team is. 

All of this is personally in DFW for me - as I live here, have a tremendous network & great team, know the market like no other and most of all I can personally GO TO my properties at any given time if I feel the need to. I may someday invest in ONE or TWO properties out of state more as a STR/AirBnB but my buy & hold strategy will always be local for me.. personally.

Originally posted by @Hunter Ricks:

Hey BP fam! Curious... what are your favorite areas in TX to invest in and why?

If you're a newbie and just getting started... where are you planning to invest and why?

 I would advise staying out of the Big 4 cities Austin, Dallas, Houston, and Sain Antonio as It is hard to find good properties that cash flow.

Maybe focus on the smaller suburb to those cities ' names above.

I live is Austin so I would also choose something closer to where I live. 

Originally posted by @Kenneth McKeown :

@Hunter Ricks my favorite place is going to be where I have the most knowledge and understanding in. Where I live. Where I have the best network of individuals. You are only as great as your team is. 

All of this is personally in DFW for me - as I live here, have a tremendous network & great team, know the market like no other and most of all I can personally GO TO my properties at any given time if I feel the need to. I may someday invest in ONE or TWO properties out of state more as a STR/AirBnB but my buy & hold strategy will always be local for me.. personally.

Brilliant response Kenneth, thank a lot. My first and foremost goal when I make it back to the States is to find a mentor in my area (Houston) and grow my network. I know I can't even begin to do it on my own. Excited to learn more about the Houston area and get my REI career started.

Originally posted by @Cody L. :

Also biased...  Houston.   So many inexpensive areas that are next to expensive areas so you can buy under market and get some appreciation.

But honestly, if I were in Dallas I'd invest there.  If I were in Austin, I'd invest there.  But since I'm in San Diego, the 'where' in Houston has no geographical advantage to me in terms of proximity.  I was going to Houston a lot, bought properties, and it's worked out. 

 Thanks, Cody. Good advice. I'm planning to stay local in Houston. 

Originally posted by @Jorge Gonzalez :

Hi Hunter, 

I was living in Los Angeles before moving out to Texas to begin my real estate investing, and I was looking at the 4 big markets, Austin, Dallas, Houston, and San Antonio, and I ultimately decided Dallas was the best in my own opinion for various reasons. I personally comfortable investing in markets where corporate jobs are expanding/relocating, large net migration in population, and good rent ratio relative to purchase price. I also look at other factors such as competition, school districts, new developments and the age of population. I would suggest to look at these trends in TX areas you are considering investing, and you'll naturally start filtering the good areas. 

Hope this helps. 

Jorge

 Excellent advice Jorge, thanks! Any advice on doing that research? Any sweet sites you use to gather that info? 

@Valden J. Ellis    A couple of places.....anywhere north of 380...that runs between Denton and McKinney and between I35 and I75 all the way to Oklahoma......along the 380 corridor is one of the hottest areas of growth in the country.  

The other place I like is between Ft. Worth and Denton along the I35W corridor....Justin, Ponder, Argyle areas.  They (Perot and Hillwood their development company) have a super nice community called Harvest in this area.  That's probably not the place for investment homes, but around it might be.

Houston...

Houston is the 4th largest city in the US and the largest in Texas, with over 2.3 million people residing in the city of Houston and more than 7 million throughout the entire metropolitan region. 

In the next decade, the Houston region’s population is expected to increase to 8.4 million, with employment reaching 4.0 million and GDP topping $1.0 trillion.

Houston's overall cost-of-living is 3.8 percent below the average for all U.S. metro areas.

Houston led the nation in job growth in 2018 creating 120,000 jobs and is expected to do so again in 2019 with health care, construction and administrative services providing the strongest performances.

Houston is home to more than 20 Fortune 500 company headquarters and has the third largest number of Fortune 1000 companies in the world, such as Sysco, Walmart, Waste Management, Memorial Hermann Health System, Kinder Morgan, AT&T, ConocoPhillips, United Airlines.

Houston ranks No. 2 in manufacturing GDP in the U.S. with a skilled workforce of more than 230,000 industrial workers in specialties such as fabricated metal, machinery and chemical manufacturing.

    When you are looking at what type of deal is a good deal and where is a good deal for you. I would say that you need to be very cautious in asking this question, the reason is this is the "HOW" part of investing which in my opinion is the 2nd part of the equation.

    I think you need to focus on the first part of the equation which is the “Why”.

    Focusing on “YOUR" goals and what you want as a result of owning real estate is the most important. Sit back and ask what and how your life will be impacted as a result of owning real estate assets. The result of owning is what?? is it cash flow, appreciation, 1031, pass down to family as a legacy, this is also what your exit strategy will be. Not many people think about the end goal and the exit strategy when looking at deals. I know because I was one of those people. I kept asking if a certain deal was a good or bad deal and would go with concensus of people and make my decision. However if I ever created goals and an exit strategy then I would have realized that these properties did not align with my goals. I think it aligned more with their goals which to no fault of their own, were not even close to my goals.

    So my strategy (my “How”) did not align with my goals (my “Why”).. and this was disastrous for me.
    Focus on the goal end destination. Then you build your strategy that’s going to get you to your goals it’s kind of like where you’re driving to is the end destinations and the freeways are the strategy that will get you there.
    No one ever asked or advised me on this and it almost made me bankrupt. Don’t ask if it’s a good or bad deal, have your definitions and strategy set first. Then focus on the market / city that will get you to your goal based on the strategy. That’s my advice I give to owners and leads that want to buy or learn to buy investment properties, we manage thousands of properties and 50/60% of our clients are new to real estate or learning how to truly build wealth and do not live locally or in the same state or country. I always stress them knowing what is a good deal for them, not for me. To me that’s helping people build wealth, not just telling them to buy or not to buy.
    Good luck to you