Need some insight on MF in Houston area

Houston, Texas
Houston Real Estate Forum
7yFollow

Need some insight on MF in Houston area

Jeremy Karnes
Member since 2018 · 3 posts · 0 votes

Hi everyone, my name is Jeremy and I'm looking to start my real estate journey. I'm looking to get into MF housing. I'll be doing a FHA loan but I'm having a bit of trouble finding a decent MF property for the right price in the Houston area. I'd like to keep it under 300k but it seems like anything in that price is run down or just not in a good area. I'm looking for something that doesn't need too much work and can be move-in ready.

I've lived in the Hobby area most of my life so I'm familiar with the lower class areas around me, though I'd rather stay away from them as I'll be living in one of the units for atleast a year. I'll be putting around 5% down and I don't have much more than that which is why I'm stuck in that price range. 

My question is, is Houston not a good area for MF? I've looked into DFW area and it seems like they have way more options with better pricing. Should I just keep looking for a great deal or am I just being unrealistic? I don't have too much for immediate repairs at this moment which is why I can't purchase a run down property. 

Any insight would be greatly appreciated even some criticism! Thanks. 

0Reply
15 views

Most Popular Reply

Ryan Johnson
Rental Property Investor · Houston, TX · Member since 2018 · 174 posts · 100 votes
7y

There has been a few that sold on the far East end area for under 300k that were completely redone and very nice. One just closed this week: see 8011 capitol, was listed $270k. Still inner loop area and maybe 12-15 from downtown. I like the east end overall but it’s still block dependent. 

1Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Dave Chapa
    Rental Property Investor · Katy, TX · Member since 2015 · 175 posts · 111 votes
    7y

    @Jeremy Karnes

    2, 3 and 4 units are out there, but very hard to find fix and ready to move in for under 300k, especially 3 to 4 plexs. A friend of mine just signed a contact in on a 4 plex in LaPorte, and it was over 300k with some repairs needed.

    I was able to pick up a 3-plex in a small town, no repairs needed, for under 300k, however, it's 40 min from Houston. 

    I'm submitting an offer on a 4 plex, also outside of Houston, in a small town for under 300k.

    With how the markets been in Houston, I mainly focus on rural towns. That is where I've been able to find some deals. 

    Just keep looking and expand your search area into other sub-markets that you wouldn't mind commuting. 

    1Reply
  • Ryan Johnson
    Rental Property Investor · Houston, TX · Member since 2018 · 174 posts · 100 votes
    7y

    There has been a few that sold on the far East end area for under 300k that were completely redone and very nice. One just closed this week: see 8011 capitol, was listed $270k. Still inner loop area and maybe 12-15 from downtown. I like the east end overall but it’s still block dependent. 

    1Reply
  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    7y
    Originally posted by @Dave Chapa:

    @Jeremy Karnes

    2, 3 and 4 units are out there, but very hard to find fix and ready to move in for under 300k, especially 3 to 4 plexs. A friend of mine just signed a contact in on a 4 plex in LaPorte, and it was over 300k with some repairs needed.

    I was able to pick up a 3-plex in a small town, no repairs needed, for under 300k, however, it's 40 min from Houston. 

    I'm submitting an offer on a 4 plex, also outside of Houston, in a small town for under 300k.

    With how the markets been in Houston, I mainly focus on rural towns. That is where I've been able to find some deals. 

    Just keep looking and expand your search area into other sub-markets that you wouldn't mind commuting. 

    What do you use to look for homes outside of Houston?  Being in Houston I stick to HAR, and it is great to have. I do check Zillow but cross reference with HAR, an usually anything on Zillow that isn’t on HAR is just out of date. 

    0Reply
  • Felicia Choi
    Member since 2019 · 2 posts · 0 votes
    7y

    I'm looking for a duplex on the northwest side...how do I search to find the MF properties...when I do a regular search on HAR, it shows me duplexes as if I just wanted to buy one side, not both...is there another way to search to find ones that both duplexes are being sold together?

    TIA!!

    0Reply
  • Jeremy Karnes
    OP
    Member since 2018 · 3 posts · 0 votes
    7y

    @Dave Chapa Looking outside of Houston area now. How is the vacancy rate in the smaller towns on the outskirts of Houston? I've considered it before but wasn't sure if it was difficult to get properties rented. 

    @Ryan Johnson

    @Ryan Johnson The property on 8011 Capitol was one of the first properties I looked at. Wasn't sure if it was overpriced or not considering it being in 2nd ward. I know that area is being redone though so I definitely am considering purchasing in that area. Will continue looking in that area. Probably should've jumped on the property on Capitol while it was still available. 

    @Bruce C.

    @Bruce C. I use HAR for the most part. Sometimes Zillow but I feel it doesn't really list multi families as well as HAR does. If you go to HAR and click on the filters option, there is a multifamily option. Just click on that and most of them should be for the whole property. 

    Thanks for the feedback everyone!

    0Reply
  • Grant Nakwaasah
    Lender · Dallas, TX · Member since 2018 · 4 posts · 0 votes
    7y

    @Felicia Choi @Bruce C. I have found that Movoto.com is the best source for finding strictly multifamily options. When you filter down to multifamily it truly does give you mf properties that are being sold as the total package. There is also a really good app for mobile use! As with any portal to the MLS it is not going to be updated as quickly as the MLS itself but I've found it to be pretty prompt with being updated. Your best bet is to keep your own saved search on Movoto and any properties that come up matching your search criteria shoot it over to your preferred realtor to check the current listing status.

    0Reply
  • Felicia Choi
    Member since 2019 · 2 posts · 0 votes
    7y

    @Grant Nakwaasah awesome - thank you!!

    0Reply
  • Candace S.
    Flipper/Rehabber · Houston, TX · Member since 2017 · 12 posts · 2 votes
    7y

    @Jeremy Karnes You can also get creative with your financing, such as going a JV route...there are many posts on here and other places regarding creative financing if you are willing to take the plunge.

    We have been running numbers on some MF (6-8 units+), and there are few "deals" to be had inside already gentrified or close to gentrified areas. There are places where you will cover your monthly nut, but also remember adding in cushion for vacancy and repairs. Beware of what you find in NE Houston inside 610 and north of Liberty (Kashmere Gardens). This is one of the few remaining "cheap on MLS" places for a majority of the properties, but 95%+ of it is on a 100 100-year floodplain.

    I'm personally waiting on the O-Zone finalizations to pull the trigger on a couple of single family (although I know you are looking at MF) unless something slaps me in the face before then. 

    Good luck!!

    0Reply
  • Dave Chapa
    Rental Property Investor · Katy, TX · Member since 2015 · 175 posts · 111 votes
    7y

    @Jeremy Karnes Sorry for the late response. What we have been finding is that the vacancy rate wasn't an issue because of the lack of rentals in smaller towns, especially in 2k to 6k population towns. All the small towns I have been looking in are 15 to 30 min from other towns, that gives it a larger pool of potential renters. One town I like is Bellville, 4k pop. 18 min from Sealy 6k pop, 26 min from Brenham, 16k pop. 22 min from Hempstad, 7k pop. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free