i am planning on moving to Houston in the summer im from NJ. I will be using an FHA loan, my goal is the following
1. positive cash flow
2. instant equity 20k to 30k
3. live rent free
what are some good areas for positive cash flow areas? and which areas should i not? what should i know about the taxes and how things work there.
Hi Mario! Congrats on coming to H-Town!! Houston is so spread out and diverse that it’s going to be tough to say “stay away” from this specific area or “go to” this specific area. If I were you I would start attending the local REI groups so you can start learning more.
I’m sure people on here will jump to saying pick me pick me as a vendor. But the most important thing you can do first is learn the markets down here yourself and then decide what vendors you would like to use or stay away from.
With that being said, I know you are moving here to live in your MF. If you can provide more parameters for your desired units I think people here should be able to point you in an even better direction.
@Michael Pittman thank you, what I'm looking for an either a 3 to 4 unit family house in C class area or better, all i care about is cash flow. I like two stories but not too far from the main cities you know.
Hey Mario, what is "too far"? Assuming you mean downtown and surrounding popular "in" areas when you say "main cities", is that right?
Most people in Houston buy and/or rent based on proximity to where they work and/or attend to school otherwise they spend 30-45 minutes commuting each way. I would say the areas surrounding downtown Houston are going to be ideal in many cases as there will be homes with garage apartments, duplexes and triplexes to choose from. Depending on your overall budget and equity capture goals any number of areas may work, but check out 2nd Ward or what is now called Eado, the Near Northside is another up and coming area where some good opportunities can be found and you should also consider 3rd Ward & 5th Ward if you are value minded.
I work in the Tomball area and have a coworker that bought a 4 plex to do this exactly. Its in a C+ area and he is remodeling the 4 units one-by-one himself. His mortgage payment is 100% covered by rents. Tomball area (in this case 249 and Louetta) is an older, stable part of Houston that has both mature neighborhoods and newer commercial developments. Definitely an area I would recommend.
@Jason DiClemente not really, 30k equity after rehab is what i mean and I'm only focused on cash flow i don't care about appreciation or equity but if i rehab it i would like equity. PA, hows that market?
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