Any folks having any luck investing in Waco, TX?
Also, has anyone had any good experiences with wholesalers that focus on Waco?
Would love to link up with other folks seeing upside in Waco.
I'm in Waco. I've been advised by several to stay away from Baylor student rentals. There are quite a few not rented. We've looked but haven't found anything that really works. The property taxes here are very high. We rent out a former residence. It doesn't meet the 1% rule but it is paid for- so it cash flows. At some point we plan to sell it and use it for a down payment for a small apartment. We love Waco but invest out of state right now. We would love to invest here-so we are still looking.
Jennie, We drove around Baylor and looked at all the For Lease signs last week. Just about every apartment complex has a sign out. Not good. I looked at a 10 unit complex with only 60% occupancy.
I spoke with a PM last August, he said the student market is very competitive. There have been a number of new properties built in the last few years. These properties are doing OK if close to campus. There is very little crossover with non student renters so it is hard to fill older units even at a reduced rent.
So far I haven’t found anything that cash flows.
@Jennie W. - Thank you for your reply to this thread! Yeah my wife went to Baylor and we've been looking for rental properties there - but not for students - for people that work at the hospital and school. What we've found are a lot of slum lord type properties that were kept barely livable presumably to rent to students. Any experience with higher end SFR rentals in Waco?
@Pete Harper - Are you focused on multifams only for Waco? I've heard it's a tough market for that in Waco since students are the main customers and like you said - very competitive.
Would love to keep chatting about all this...
Blake, I will continue to have my eye on the Waco market. Maybe with Baylor enrollment continuing to grow the inventory will correct.