Investor · Denver, CO · Member since 2017 · 42 posts · 17 votes
I am looking to purchase a multi-family rental property (duplex most likely) for a buy and hold position that will cash flow well. I want to keep it under $200K for a B or higher property, which of course limits my locations. I currently live in Denver and the Colorado market is really not feasible for this. I'm from Dallas and have tons of connections there, but that market has been overheated for awhile and multi-family properties are extremely difficult to find. We have a family cotton farm in Ralls, Tx which is just outside Lubbock, and my grandparents and mom are from Lubbock. Although they have all passed now, I still feel a connection to the area. After doing some research, it looks like job growth, industry diversity, and population growth are all strong in the area. Prices are reasonable and looks like they would cash flow. Taxes are on the lower end for Texas. What am I missing? I can't find much if any discussion on BP for this area. Any thoughts from anyone who has considered this location or works/lives/invests in this area? I would welcome any feedback!
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
6y
I am originally from Lubbock but live in OKC now. I still have my former SFH residence there that is a rental property. It's been a full time rental since 2015. I've been super happy with it. It's a decent B+ area with good schools. It doesn't attract the college student crowd which I'm 100% fine with. We've had 2 different sets of families live there and they've both been fantastic renters. I haven't pursued buying any additional property in Lubbock because it just isn't practical for me right now, but I wouldn't hesitate if I found a really good cash flowing deal.
Reach out to @Jordan Sutherland, I know he works with investors in the Lubbock market.
Real Estate Agent · Lubbock, TX · Member since 2019 · 12 posts · 9 votes
6y
@Catherine Peters I agree with you that Lubbock is a good market to invest in. Shoot me a message and we can chat. We run around 50 homes around the city that are great for investments.
Dallas, TX · Member since 2019 · 12 posts · 3 votes
6y
I recently purchased 2 homes in Lubbock for the reasons you’ve stated. There are a few older homes that have the main house and a back unit for way less than $200K if you’re willing to go that route. The multifamily duplexes you’ve described may not cash flow as much at least from the analysis that I’ve done.
I think it’s a good market that can help with cash flow but it may not be an area where you can expect a lot of appreciation if that’s what you are looking for.
Rental Property Investor · Dallas, TX · Member since 2020 · 20 posts · 29 votes
6y
Also interested in Lubbock for cash flow. My wife was working for a wholesaler for a bit and they were finding lots of solid deals in the area. Wondering if these are mostly catered to students or just renting families. Vaguely know Lubbock from trips awhile back, but I know it's changed a ton
Rental Property Investor · Lubbock, TX · Member since 2018 · 10 posts · 4 votes
6y
@Catherine Peters
You’re right Catherine, the Lubbock market is very stable with steady returns, and a growing economy. Rentals perform very well because of the college kids, medical professionals, and other people that work in Midland/Odessa that prefer to live in a Lubbock. I am a wholesaler here and we get solid deals to our buyers all the time. And a lot of turnkey rentals with good tenants in them as well. My number is 8063927635. Feel free to reach out to me if you’d like to know more about the market.
I can attest to the Lubbock market as well. I currently live outside of Fort Worth but am from the Lubbock area originally. I travel there for work and family fairly often. I have an apartment complex and duplex there currently and am actively looking for my next property there. I have a mix of students and families as renters. Strong rental market as others have mentioned. Lubbock is the "Hub" for a large area of people. It is a lot bigger than people think. Tons of growth in the area over the last 10 years and a very diverse and steady economy. Education, Healthcare, Financial Institutions, Agriculture and Oil & Gas are all driving forces. It has been very steady for us with consistent growth.
Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes
6y
@Ren Ellis did a great job of summing up the LBK market. Personally, I have not found many duplexes in town that are under $200K with good cash-flow. We have had success with SFR's and a four-plex we own. Please reach out if you want to discuss in more details.
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
6y
I am originally from Lubbock but live in OKC now. I still have my former SFH residence there that is a rental property. It's been a full time rental since 2015. I've been super happy with it. It's a decent B+ area with good schools. It doesn't attract the college student crowd which I'm 100% fine with. We've had 2 different sets of families live there and they've both been fantastic renters. I haven't pursued buying any additional property in Lubbock because it just isn't practical for me right now, but I wouldn't hesitate if I found a really good cash flowing deal.
Reach out to @Jordan Sutherland, I know he works with investors in the Lubbock market.
Realtor · Lubbock, TX · Member since 2016 · 127 posts · 60 votes
6y
I agree with @Cassi Justiz. When we orgionally started investing in Lubbock, it was with the intent of renting to college students. I will take anyone who meets the criteria and can pay.
Also, she is spot on about @Jordan Sutherland. He would be a great local resource and already works with a lot of out of town investors.
Flipper/Rehabber · Lubbock, Texas (TX) · Member since 2016 · 63 posts · 36 votes
6y
So far what the other contributors say is in line with my experience in Lubbock. Solid rental market, steadily growing economy, minimal, but steady appreciation.
I have about 13 rental properties, am a realtor, do rehabs, and am building new construction duplexes and townhomes. I am finishing a set of four townhomes on the ever expanding north west side of town that are in the 150 to 160k range. Buying lots now for small multifamily construction. We build our properties with rentals in mind -meaning solid construction with hard surface flooring, tile backsplashes and shower surrounds, wood window casement, and everything we know from experience that helps with maintenance down the road.
New construction duplexes may be an option for you. They are turnkey and will be low maintenance for at least 10 years. Rehab properties are an option if you have a trusted contractor and can check in on the project periodically. I have talked with investors who have never set foot in their rehabs and only saw pictures of work that had be an done. That's a recipe for disaster, and almost always is a disaster.
Investor · Denver, CO · Member since 2017 · 42 posts · 17 votes
6y
You guys have been awesome! I have spoken to a few of you individually, and just wanted to give a shout out to everyone who has contributed to this thread. I am moving forward with plans to invest in the area, and would appreciate any recommendations for lenders that work with investors in the Lubbock area. Stay safe, stay healthy everyone!!!
Flipper/Rehabber · Lubbock, Texas (TX) · Member since 2016 · 63 posts · 36 votes
6y
I have had good experiences with local Lubbock banks: Aim bank, First Bank and Trust, and Alliance CU. Aaron Chapman and Rocket Mortgage are remote and do longer term mortgages with fixed rates. Aaron Chapman was really awesome to work with.
I have also worked with Prime Lending and City Bank as the general contractor for other investors. No complaints about them.
@Catherine Peters. I am looking to invest in Lubbock in a 6 units MFH. Wanted to get your experience so far if you did finally move forward with your investment in Lubbock? Thanks
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
4y
@Elo Omavuezi we do a lot of financing in Lubbock. It is a great market for cashflow with the University being the main driver. Appreciation is more stagnant, but this market has a lot of lower end houses in poor condition, so the BRRRRR method is a lot easier to accomplish in some of the more popular markets in the state