Whats the best strategy right now in Houston in this economy?

7 Replies | Houston, Texas

Depends where in Houston you’re trying to invest. For flips, 3rd ward and east end revitalized are where I’d start looking. For rentals, anywhere around UH will be good, Houston-adjacent in Missouri City/Stafford have good rental markets as well for buy and holds. 

If more capital is available, Norhill in the Heights has some really good rate of return on flips.

if nothing else, get in touch with a wholesaler to find deals. I am subscribed to one that still sends me flips in and around houston where their numbers still work for anywhere between $20-$70k returns on flips. Obviously have to double check their numbers as wholesalers have a tendency to over inflate the ARV sometimes (appraiser for the loan will catch that).

I have an off market NNN deal in 3rd ward. I was going to allow the lease to season a bit then refi to get all my cash out of the deal (I pod $3m. I assume it will appraise for $4m in a few months)

I’d sell for 3.1m (10 cap) 

To answer your question: buy in the path of progress where you can get some upside. Just making 6-8% on a property is a slow way to grow. Get something you can flip out of or refi and get your capital out of

and like someone else said, 3rd ward still has pockets that are under priced 

Updated about 2 months ago

pod / paid Lame you can't edit afterwards. Especially considering the dialog boxes on BP often don't work with spell check. Oh well :)

@Abdul Jabbar Khan I know you want to get your hands dirty or you might have the urge to get started. Before going different way, I always suggest you to first thing about what do you want to accomplish. What's your goal, Short term gain or long term passive and what's the purpose.. Define them and then look at the strategies @Cody L. and fire away. I wouldn't recommend blindly jumping on the water without know were to go.. Just my few cents.