Rental Property Investor · Austin, TX · Member since 2015 · 280 posts · 176 votes
I am from Houston but the market has changed A LOT in the past few years since I left. I am looking for non flood prone areas where I can achieve at least 1% of the market value of the property in rent. Any suggestions on which areas and neighborhoods to focus on?
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
There are lots. I bought a 10 unit in Montrose (which I'd call an "a" area) last year for $815k. Rents for $1k/door so over 100% rule (to be fair, I put in about $100k but I'm still over the 1% rule). I bought a 12 unit last year in 3rd ward (which is an area I'd strongly put int he "B" camp if just for the fact its smack in the path of progress). I paid $51k/door which seems outragous next to what I had been paying a few years before ($20k range). But they rent for $750/door so well over 1%
TLDR: Tons of options. Just gotta look man. If you're looking at SFH it'll be harder and you may need to stick to burbs like Katy and Sugraland -- yuck (IMO)
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
There are lots. I bought a 10 unit in Montrose (which I'd call an "a" area) last year for $815k. Rents for $1k/door so over 100% rule (to be fair, I put in about $100k but I'm still over the 1% rule). I bought a 12 unit last year in 3rd ward (which is an area I'd strongly put int he "B" camp if just for the fact its smack in the path of progress). I paid $51k/door which seems outragous next to what I had been paying a few years before ($20k range). But they rent for $750/door so well over 1%
TLDR: Tons of options. Just gotta look man. If you're looking at SFH it'll be harder and you may need to stick to burbs like Katy and Sugraland -- yuck (IMO)
Good info Cody. How did you find the two deals you spoke about? I am in Houston and SFH is nuts. Multi offer deals and all within 24 hours.
saved searches on HAR. But to be fair, I was also in a position to call them and say "I'll take it. Here is $100k hard. I'll close in 7 days". For a buyer that just wants a quick close and a no fuss buyer, they'll sell for less than others might offer. Not everyone can do that. So I don't mean to say it's easier than it is.
Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
7y
I agree with Cody. I see them from time to time, even on the MLS. 77084 and 77449 are zipcodes that I track. Not there everyday but they do show up. Maybe not class B but still decent.
I agree with Cody. I see them from time to time, even on the MLS. 77084 and 77449 are zipcodes that I track. Not there everyday but they do show up. Maybe not class B but still decent.
Yikes, those seem soooooo far. I'm such an inner loop snob :)
Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
7y
@Cody L. aren't you the guy buying SFRs up in the Woodlands or somewhere up there? I thought I remember you saying something about some area up there you like to buy in.
@Cody L. aren't you the guy buying SFRs up in the Woodlands or somewhere up there? I thought I remember you saying something about some area up there you like to buy in.
noooo. I have one home up in Conroe I bought for the hell of it (I lease it out) but almost everything I have is inside the loop (see map)