I have recently moved to Houston in the last month because I have accepted a job downtown. I would like to purchase a small multifamily property to househack so that I can get off on the right foot towards financial freedom. I have been looking in the EaDo and Northside village areas since they are close to work and also seem to be areas that are becoming revitalized with a lot of newer construction and small businesses.
Any tips for other areas where I should be looking?
Does anyone know of a good investor friendly contractor since I will likely be purchasing a fixer-upper?
Also, I would love to network with local investors in the area. My job is pretty intensive throughout the week but I would love to attend weekend meetups or even just grab some coffee or lunch.
Thanks in advance for the replies!
There is not a ton of multi-family in Houston so I would not restrict your search to 2 areas. Most of the good multi-family deals I see are in the south of Houston down to Galveston. The hardest part of multi-family in Houston is being able to put a solid value on the property. I have looked at some properties and I cannot find a similar comp that sold within the last year in that area. This makes getting a loan hard to calculate since its hard to guess the appraisal amount. I would be more focused on the cash flow you are looking for and see if you can find a property that fits that criteria.
Hey @Brian Hatcher , I'd suggest doing some research and finding a realtor in your area that 1) has been around 10+ years, 2) has invested in properties of their own in the past, and 3) isn't so busy that they won't have the time to work with you. You don't want them to be so busy that you're constantly working with their assistant.
A realtor like this will be absolutely invaluable, and will be a great resource to connect you with many people who can help you with your future endeavors.
@Jeremy Pakalka thanks for the advice! Those locations are not the only places I am looking, just my main focus points since they meet a lot of the criteria I am looking for. Since you are a realtor in the area, would you mind working with me in searching for a property? I’m not strictly looking for multifamily, but also single family that have garage apartments or detached living. I have seen a lot of this in the area. I have found a few properties that need some work but am unsure of whether I should take on a large rehab as my first endeavor.
@Nate Burgher thanks Nate, I currently am working with a good realtor, who is knowledgeable but doesn’t necessarily have the right investment mindset for finding what I am looking for. I’m hoping that I can find a good member here on BP who can recommend me a good realtor.
@Nate Burgher I definitely agree with your suggestion. I'm not that familiar with Houston, but being a Realtor and investor myself, I can safely say that finding a Realtor who knows real estate investing is invaluable. The tricky part is finding an agent who has experience with that market but also has the time to dedicate to you. Most agents who've been in 'the game' 10+ years have the business flow to keep them busy.
@Brian Hatcher Make sure the agent knows how to calculate the basic investment numbers we deal with day-in and day-out. Having the right mindset, as you mentioned, is also vital. I dislike how every agent uses the same sales pitch "If you know anyone who's looking to buy, sell or invest...". Most residential agents are about as savvy with investments as they are with commercial real estate so be cautious.
I've found a few solid rentals on our MLS, however, the most lucrative deals tend to be sold investor-to-investor at local deal-making sessions and through the local REIA. Make sure to not rely solely on the MLS for deals, get out and network with the local pros and the more you get in front of them, the quicker you'll build a reputation as someone who is serious and set on making things happen. Who you know is important, but who knows you is far more crucial.
@Brian Hatcher we have a great group of investors and BP members that get together monthly at the HIT meet up. I’ll be scheduling the next one this week.
Let me know if you have any questions.
@Matthew Gullo I would love to be a part of that meet up, please pm me with details and I’ll be there!
If you wouldn’t mind I would also love to attend. Please forward the address. Thank you
Hi Brian! I’d love to meet up and talk real estate investing - let me know your availability.
I’m in Houston every Mon-Thurs for work (consulting), and I’m interested in learning more about the Houston market while here. I’m based in Chicago and my rental investments are there as well.
Curious to learn more about Houston’s market! Cheers.
@Mykia Long Definitely! I work a pretty crazy schedule but I'm sure we could meet for lunch or something?
@Brian Hatcher Great- I’m back in Houston every Monday and I fly out on Thursdays FYI.
Let me know if you have time for lunch this coming week or the following. Looking forward!
Hey Brian. welcome to Houston and congrats on the new job. I also just started a job downtown and have been looking at the EastEnd/Eado area for small multifamily properties . Would love to stay connected and bounce ideas/questions back and forth.
@Jake Milan Sounds good, let's stay in touch!