In your opinions, what are the best subdivisions to buy a house, rehab it and sell it in the Houston area? (From The Woodlands down to Clear Lake). Low days on market, low inventory, high amount of sales are usually what makes a good flip subdivision.
Really interested to see some answers here...wish I could contribute.
Well I was thinking anything that had a big lot and a horseshoe driveway, it seems like an outdated luxury.
Well when I asked this question, I didn't really get a response so I decided to dig for myself. I ended up doing a lot more than I originally intended. I took every subdivision in the Houston city limits and and broke it down to the top 34 based on a few different key variables. The results were interesting.
I already posted this in a separate forum, but in case you missed it here it is:
***You may have to save the image to your device and open it up from there, in order to make the image large enough for you to see it.***
I would take a step further and say that your deal is mostly won or lost during the due diligence period. I know people that have bought horrible deals in amazing areas and had no idea what they were doing and lost everything because they didn't know what they were doing and did not have the right team in place, and vice versa..
I would say it depends on the deal and what your plan is... Do you buy or not buy a stock based on what state the company is located? No you buy it based on performance and the rerun you can expect.. Same should apply to buying investment properties
Yes I agree, the due diligence period is important. This chart is only covering 1 aspect of due diligence and is meant to highlight neighborhoods that are outperforming the market by the numbers (numbers dont lie) and is meant to be a reference for anyone interested in those areas.
To your stock reference- performance in a property is often dictated by location and the surrounding conditions just as a stock is dictated by its surrounding conditions. You cant apply physical location to a stock though. Take inventory for example. If you're in a neighborhood where you can get into a house for 70 cents on the dollar after repairs (which is near impossible these days) and its an average size neighborhood but you have 35 active listings and 12 of them are rehabbed just like yours, thats something to consider.
Again, I get due diligence is important and im not saying this chart or something like it is all you need to complete your due diligence. Im trying to make the information available. The point is, if you have a property in one of these neighborhoods, as long as you don't butcher the rehab or buy at the wrong price, you have a better than average chance of making some money.
Interesting stats. Did you use all properties in those areas (condos, SFH, MF) or filter them down at all?
I used only single family and filtered down from there.
@Trey Watson Thanks for sharing the neighborhood analysis! It's nice to see the breakdown per neighborhood (instead of just zip code). Have you run this report more recently than for the 2014 and 2015 data? I'd be interested in seeing it!
Also, it looks like you're from Denver ... but are you actively investing in the Houston market, now?
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!