Solid C area, or too close to red zone?

Question

Hi Everyone, Looking at a place that is east of the 130w and north of Bellaire. Got some good feedback from the agent and property manager, but I know it's close to a rougher zone.  I know this forum thinks south of Bellaire is a place to stay away from.  The deal makes more than sense on paper, even at the list price.  What do you all think about the area?

James Maradits · Answer

I've flipped a few houses over there.  It is improving, but there are a few streets over there that definitely have a ways to go in terms of a lot of run down property and other things that make the neighborhood less appealing.  I would also recommend getting a pest inspection in that area, I've personally seen a lot of properties in a one or two block radius over there that have cockroaches/bed bugs.

If it helps feel free to shoot me a PM to discuss further!

Dave Stokley · Answer

What are you using it for? @James Maradits is right, neighborhoods like this can vary dramatically street-to-street. It's not somewhere I would buy because I only do STRs and guests would not want to stay there, but if you're just looking for cash flow it could be ok. I personally haven't seen or heard much about any targeted redevelopment in that part of town, so I wouldn't go there looking for crazy appreciation.

Grayson Appleget · Answer

Thanks, guys. If I went for it, I'll definitely go for the pest inspection @James Maradits and @David Stokley I'm looking for cash flow mainly.  I found at least on the MLS, a lot of the properties in B areas need a heavy discount (15-20%) to cashflow around 7%. Do you have any recommendations for areas that cashflow well, but also not going to be too much of a headache?