Multifamily numbers in Houston

4 Replies | Houston, Texas

Hi everybody! Me and other partners are interested in investing in multifamily as a way of starting to have a steady cash flow. According to our possibilities, we are thinking in small multifamily properties class or C(no more than 20-25 units) and even though I have certain numbers in my head according to cap rate and IRR...I would like to get an idea of what is the average in Houston market right now, any help? We would be open to other markets specially in Texas as well. Thanks!

Depends on the area and the size. I own 112 doors all small multifamily. In Third Ward stuff is selling stabilized at a 6-7 cap. I have a 16 unit I'll sell soon hoping to get that price. Greater Heights probably a 5-6 and Heights is selling at 125k a door. Depends on the market and other criteria. 

Thank you so much for your comment Kevin I am looking for B or C buildings and probably no more than 20 units, so I may be interested in what you have, if you could pm we could have a better idea of what we both are interested. Also, in your opinion, which areas are good for investing in multiproperty, thinking in their potential appreciation in the next 5 years?

Originally posted by @Kevin Wood :

Depends on the area and the size. I own 112 doors all small multifamily. In Third Ward stuff is selling stabilized at a 6-7 cap. I have a 16 unit I'll sell soon hoping to get that price. Greater Heights probably a 5-6 and Heights is selling at 125k a door. Depends on the market and other criteria. 

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