Is anyone familiar with NE Houston?

Question

Hi everyone! Been browsing realtor.com looking for my first investment property and came across a few in 77044. Is anyone familiar with that area code? I grew up on the opposite side of H town so Im not too familiar with that part of town. I believe it is Section 8 housing but Im not sure. Either way, this SFH is under $100k and has had some minor cosmetic work done along with a new roof/AC and looks to be cashflowing $150+ but not sure about the tenant pool in that area

Also, if anyone has any recommendations on realtors/contractors that work in that area it would be greatly appreciated :)

Also, if anyone has any recommendations on realtors/contractors that work in that area it would be greatly appreciated :)

David Chappell · Answer

@Sean York since I am working on building my network, I am looking at the MLS which is where I found this one. I am working with a realtor and let her know what I am looking for, and I have been added to one wholesale investor list that emails out properties when they are available. After I get my first SFH locked down, I would like to start looking at duplex/triplexes.

Sean York · Answer

@David Chapoell how are you finding your potential deals?  I am 15 year veteran in multifamily development but a newbie investor located on the NW side of town - tomball/spring

David Chappell · Answer

@Ryan Goff for the first year no. I have budgeted fees into the CF numbers just to get a hang of things and get a feel for the tenant and see if its something I would want to take over myself after I get some experience.

Effram Barrett · Answer

I live 5 minutes from 77044. I'm pretty sure I know what neighborhood you're talking about. Cash flow is pretty tight in the area as you mentioned but curious how the other choices work out for you

Ryan Goff · Answer

@David Chapoell  are you planning to self manage?

David Chappell · Answer

This will be my first deal! I sent you a PM request, I can share my worksheet that I'm doing my calculations to give you an idea of where its coming from. I made an error in the mortgage tab and the new CF is $237/mo

James Polk · Answer

Have you done any deals before? Not sure why the cashflow number is so low on 1300 rent with property under 100k.  You can call me and we can go over the numbers.  PM me.

David Chappell · Answer

Hi James,

After getting a few insurance quotes, it came in a little higher than I thought ($1300) which puts the cash flow at around $128/month. I also started looking into the tax implications and if I am doing the math right I would be paying $800 (25% of $3174 taxable income) which ends up being about 1/2 of my yearly cash flow. Not sure if I am doing that math correctly though.

Still not a bad deal I dont think, there are two other replica properties in that same neighborhood that need some work...also looking into those as well. I received a quote of about $6k to get it rent ready (clean/pest/paint/flooring/landscaping/garade door).

James Polk · Answer

Let us know what you think about the deal and if you buy it.

David Chappell · Answer

Just got off the phone with the property management company for that property and they said they just signed a lease with a new tenant for $1,200..above my projections! Headed down to Houston to look at it tomorrow!