Houston fix and flip and buy and hold

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Houston fix and flip and buy and hold

Jasmine Ward
Realtor · Toledo, OH · Member since 2016 · 5 posts · 2 votes

Hey everyone! I’m researching areas in the Houston, Dallas, and Austin areas. I was wondering what areas in Houston have the most appreciation potential? Any agents in the Houston area that would like to connect! 

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Lee HamptonPro Member
Developer · Houston, TX · Member since 2020 · 94 posts · 105 votes
5y

@Jasmine Ward   $200k, positive cash flows and excellent appreciation potential. Sign me up for a few dozen of those. In all seriousness, that is what everyone is looking for and it is like finding a needle in a haystack in this market. Supply is limited, demand is high, money is cheap, consequently we have had a near historic rise in asset prices. Houston and Dallas both fall in this category, but Austin is other worldly and is quickly turning into a repeat of Silicon Valley. For $200k, you are going to have to anticipate the next hot spot, not chase the existing ones. You or your agent will need anticipatory skills. While 3rd ward, EADO are great Houston spots, they are no longer hidden gems and prices reflect that fact. Given you are from Ohio, there are some good markets in your home state that may not have experienced the same level of price appreciation as Houston. Are you finding it tough in the Ohio market.  Keep us posted on your Texas journey.

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  • Andreis Bergeron
    Member since 2021 · 134 posts · 46 votes
    5y

    Hey Jasmine, just sent you a message and connection request.  Would love to help you explore all these markets.  Let me know if you'd like to chat

    0Reply
  • Ridge Tullos
    Real Estate Agent · Houston, TX · Member since 2020 · 51 posts · 44 votes
    5y

    @Jasmine Ward over the last year Houston has seen somewhere around 17% appreciation. As with most places the market has been absolutely crazy. It's hard to answer a specific part of Houston without knowing what it is you are looking to accomplish. Personally I like the outskirts of Houston over anything actually in Houston however, there are definitely potential for success in both!

    2Reply
  • Jasmine Ward
    OP
    Realtor · Toledo, OH · Member since 2016 · 5 posts · 2 votes
    5y

    That's so much for replying! I'll be in Houston the May 8-11 and then again in July. I'm looking for fixer upper 1-4 units, FHA financing with possible 203k. 2bd 2br condos, or multi family. 3 bd 2br single family homes. I aim for neighborhoods that show a lot of appreciation potential as well as room for cash flow. My budget is $200k

    1Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    5y

    3rd ward.  Anything east of downtown/45 yet still inside the loop.  That's where most of my stuff is. 

    0Reply
  • Matthew Rolf
    Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
    5y

    @Jasmine Ward ^I think @Cody L. hit on exactly where you'd want to look for at that price point + appreciation potential

    0Reply
  • Jasmine Ward
    OP
    Realtor · Toledo, OH · Member since 2016 · 5 posts · 2 votes
    5y

    Thank you I’m going to look it up now! 

    0Reply
  • Jasmine Ward
    OP
    Realtor · Toledo, OH · Member since 2016 · 5 posts · 2 votes
    5y
    Originally posted by @Cody L.:

    3rd ward.  Anything east of downtown/45 yet still inside the loop.  That's where most of my stuff is. 

     That’s a big help thank you I’m looking it up now! 

    0Reply
  • Lee HamptonPro Member
    Developer · Houston, TX · Member since 2020 · 94 posts · 105 votes
    5y

    @Jasmine Ward   $200k, positive cash flows and excellent appreciation potential. Sign me up for a few dozen of those. In all seriousness, that is what everyone is looking for and it is like finding a needle in a haystack in this market. Supply is limited, demand is high, money is cheap, consequently we have had a near historic rise in asset prices. Houston and Dallas both fall in this category, but Austin is other worldly and is quickly turning into a repeat of Silicon Valley. For $200k, you are going to have to anticipate the next hot spot, not chase the existing ones. You or your agent will need anticipatory skills. While 3rd ward, EADO are great Houston spots, they are no longer hidden gems and prices reflect that fact. Given you are from Ohio, there are some good markets in your home state that may not have experienced the same level of price appreciation as Houston. Are you finding it tough in the Ohio market.  Keep us posted on your Texas journey.

    5Reply
  • Harrison Vann
    Member since 2021 · 6 posts · 6 votes
    5y

    I found a fix and rent in west Houston for 215k. My advice is to find a very specific zip code and watch for several months to get a feel for pricing in the area. Houston doesn’t have a ton of multi-family units in that price range. 

    2Reply
  • James Villarreal
    Member since 2021 · 13 posts · 5 votes
    5y

    Houston market - Third ward, east end revitalized (and neighboring areas) and Sunnyside are where I'd start. Lots of multi fams in sunnyside and some in third ward so you have options other than SFR. Those areas did not have a issues with flooding during Hurricane Harvey but it is an absolute must to confirm if a property flooded because it can definitely impact value. Also confirm if property is in a flood zone because that will be a factor for insurance costs if they make you purchase flood insurance.

    Definitely recommend doing BRRRR in those markets. Maybe connect with a wholesaler too as they have helped get me a few deals. Let them do the legwork for you.

    If interested, check out Galveston as well. That market is stupid right now with a ton of BRRRR ready homes. I've done several appraisals for a hard money lender in that area and the numbers are consistently good for flips and multi fams there are way under valued compared to the SFR.

    Hope this helps and good luck!

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Jasmine Ward You have to be realistic with your expectations or else you will be coming in with false expectations.

    I can chat with you about the reality of Houston Market if you want to get the meat and potatoes.

    Let's connect.

    Goodluck.

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  • Lionel Mosby Jr
    Real Estate Agent · Houston, TX · Member since 2020 · 107 posts · 32 votes
    5y
    Originally posted by @Jasmine Ward:

    That's so much for replying! I'll be in Houston the May 8-11 and then again in July. I'm looking for fixer upper 1-4 units, FHA financing with possible 203k. 2bd 2br condos, or multi family. 3 bd 2br single family homes. I aim for neighborhoods that show a lot of appreciation potential as well as room for cash flow. My budget is $200k

    Why Houston?

    How did your visit down here go? Would love to connect with you to discuss the market here in Houston and really understand what your goals are. If you are looking for appreciation potential, then you are going to need to shoot for the next up and coming area instead of coming in late on already highly appreciating ones. Also, keep in mind that the multi-families here in Houston are very, very scarce as you may be aware after you traveled down.

    0Reply
  • Jessica Wygal
    Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
    5y

    @Ridge Tullos tagging you because of your appreciation figure, thanks for that! Whos your source? Considering selling my LTR/SFH in Cypress but very hesitant due to the crazy appreciation...wondering if you have any personal projections for the rest of 2021 and 2022.

    @Cody L. tagging you because I follow a lot of your comments and trust your knowledge...has the recent Houston appreciation tempted you at all to sell/HELOC and reinvest the funds further/elsewhere?

    0Reply
  • Ridge Tullos
    Real Estate Agent · Houston, TX · Member since 2020 · 51 posts · 44 votes
    5y
    Originally posted by @Jessica Wygal:

    @Ridge Tullos tagging you because of your appreciation figure, thanks for that! Whos your source? Considering selling my LTR/SFH in Cypress but very hesitant due to the crazy appreciation...wondering if you have any personal projections for the rest of 2021 and 2022.

    @Cody L. tagging you because I follow a lot of your comments and trust your knowledge...has the recent Houston appreciation tempted you at all to sell/HELOC and reinvest the funds further/elsewhere?

     I have pulled that information from multiple sources; mortgage lenders, HAR, etc.

    Quote from HAR - "Homes priced from $750,000 and above led the charge in sales volume in April with a staggering 164.3 percent year-over-year surge. That was followed by the $500,000 to $750,000 segment, which soared 132.2 percent. With high-end homebuying overshadowing the marketplace, pricing climbed to new record levels. The single-family home average price rose 20.0 percent to $371,854 and the median price increased 17.6 percent to $295,000."

    https://www.har.com/content/ml...

    1Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    5y
    Originally posted by @Jessica Wygal:

    @Ridge Tullos tagging you because of your appreciation figure, thanks for that! Whos your source? Considering selling my LTR/SFH in Cypress but very hesitant due to the crazy appreciation...wondering if you have any personal projections for the rest of 2021 and 2022.

    @Cody L. tagging you because I follow a lot of your comments and trust your knowledge...has the recent Houston appreciation tempted you at all to sell/HELOC and reinvest the funds further/elsewhere?

    Absolutely , I've been refinancing my whole portfolio.  I've done almost $100m in new loans all at/under 4% and pulled out gobs of $ to buy more. 

    2Reply
  • Jessica Wygal
    Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
    5y

    @Cody L. I need to make the leap but that additional payment each month with a HELOC scares me! Hence considering selling all together. Anyways, thanks for the feedback!

    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    5y
    Originally posted by @Jessica Wygal:

    @Cody L. I need to make the leap but that additional payment each month with a HELOC scares me! Hence considering selling all together. Anyways, thanks for the feedback!

    The first time I got a big loan, it was scary.  It depends on what your goals are.  If you just want a few homes to give you that extra 3-5k/month of income once paid off then that should be your focus.  Grow slow, focus on low/no debt.  Nothing wrong with that.

    My goal was to have 1000's of units so I've sort of designed my strategy around that.  Since I don't have investors the only way to accomplish my goal was to BURRR large multi and keep on growing.  I just hit over $100m of real estate debt which blows my mind. 

    1Reply
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