Looking to Invest in a rental in Waco
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
@Noelle Stecher thanks for posting. If you don't mind me asking...why Waco? Do you live there? If not, where do you live? And why aren't we investing there?
I live in Houston and the market here is way too expensive for me to have good cashflow, so I am looking at other options. I’ve seen many good things about Waco and the population growth there. But, I am definitely open to other suggestions.
Quote from @Noelle Stecher:
I live in Houston and the market here is way too expensive for me to have good cashflow, so I am looking at other options. I’ve seen many good things about Waco and the population growth there. But, I am definitely open to other suggestions.
I am not that familiar with Waco (other than driving through it routinely) but I know just like any city, there are some really nice areas and plenty of "not so nice" areas. I have recently started looking into the STR market there and know that it does have a strong STR prospect.
I am in Temple areas (Killeen/Belton/Temple) about 45 min south of Waco on I35. This might be an area you consider as well! Temple: Major Medical (only Level I trauma center between Austin and Dallas and VA hospital), FB/META is building a data center here, Belton has private 4 yr university, and Killeen has Ft. Hood. Good population growth in the area
@Noelle Stecher if you live in Houston and are considering Waco, I highly recommend taking a weekend trip up to the town before making a decision. I grew up in Waco and there is a lot of potential there, but also many C/D class neighborhoods that will look like good cash flow on paper but I wouldn’t touch. Get to know the area and drive around with an investor-friendly agent or fellow investor.
@Noelle Stecher I would highly recommend re-evaluating the Houston area. Not only are there tons of properties that are sub $300k but then they are local to you. That means you can interact with your contractors and partners. You can vet them easier. You can meet with them and meet with other investors in your market and find out what's working. When investing out of your area, something I have done for 15+ years, it's really hard to manage your properties. You may never even see your properties. That's an enormous amount of trust to put into vendors. Now if you said you knew property managers, realtors, etc. in that market I would feel significantly better about it. I mean, you can do what you want...but I would suggest examining it again. The few % points better than another city could offer might be completely eradicated by someone who's not watching out for your property.
Hope all of that makes sense.
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Quote from @Noelle Stecher:
I live in Houston and the market here is way too expensive for me to have good cashflow, so I am looking at other options. I’ve seen many good things about Waco and the population growth there. But, I am definitely open to other suggestions.
The reason Houston is hard is like any other TX city--property taxes are atrociously high. I've found some solid deals in Houston but they all need work. Fixer up or all cash plays. I don't think basic leveraged plays into something intrinsic will show up in any city, let alone one's with a growing population. I've looked at areas like Katy, Acres Homes, Hardy Yards. There's stuff that can be done, just takes a lot more work.
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I like the campus area. Always rents and not as hood.
Quote from @Ryan Kelly:Thank you for the info! Can you give some specifics on which neighborhoods you wouldn't touch?
@Noelle Stecher if you live in Houston and are considering Waco, I highly recommend taking a weekend trip up to the town before making a decision. I grew up in Waco and there is a lot of potential there, but also many C/D class neighborhoods that will look like good cash flow on paper but I wouldn’t touch. Get to know the area and drive around with an investor-friendly agent or fellow investor.
Hey Nicole! I agree with you that your odds of cash flowing are much better in Waco than Houston - curious if you are intending to rent this one out as a long term or short-term rental?
Looking for long term rentals, but also considering Temple, Texas too.
Quote from @Noelle Stecher:I would focus on School districts and established neighborhoods for your search. You will find many charming 1920-1960's homes here in Waco, but your tenants may not be comfortable with the area.
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
School Districts:
Midway ISD
China Spring ISD
Bosqueville ISD
Robinson ISD
Lorena ISD
Waco Neighborhoods:
Dean Highland
Landon Branch
Castle Heights
Brookview
Sanger Heights
Fishpond
Viking Hills
The issue you'll run into is the cashflow on these turnkey rentals. You won't be able to get the rent much higher than $1600-1800 on a 3BR 2BA in most Waco neighborhoods. This is why you may want to look at Hewitt and Midway ISD area, due to desirability from families moving into the area.
Baylor bubble is very hard to break into and oversaturated with landlords with heavy pockets. I would stay away from there unless you have a child going to school there.
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Quote from @Trevor Caswell:
Quote from @Noelle Stecher:I would focus on School districts and established neighborhoods for your search. You will find many charming 1920-1960's homes here in Waco, but your tenants may not be comfortable with the area.
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
School Districts:
Midway ISD
China Spring ISD
Bosqueville ISD
Robinson ISD
Lorena ISD
Waco Neighborhoods:
Dean Highland
Landon Branch
Castle Heights
Brookview
Sanger Heights
Fishpond
Viking Hills
The issue you'll run into is the cashflow on these turnkey rentals. You won't be able to get the rent much higher than $1600-1800 on a 3BR 2BA in most Waco neighborhoods. This is why you may want to look at Hewitt and Midway ISD area, due to desirability from families moving into the area.
Baylor bubble is very hard to break into and oversaturated with landlords with heavy pockets. I would stay away from there unless you have a child going to school there.
Thank you so much for the info!
I second the idea of looking in the greater Temple area as an option. I live In Austin, and the market in the Temple/Belton area is not as hot as Austin, but certainly heating up. There is simply a different sort of potential buyer in the area now with Musk's Rocket Factory in McGregor (waco is getting this benefit too) and some high tech from Austin overflowing slowly but surely into the Temple area there is still affordable opportunity.
IF you are gonna look at Waco, you need to check out the Belton area. Better schools than Temple. Waco has already sort of been Magnolia-ized IMHO with price inflation and Dallas Money coming down to play.
I'm a big fan of Temple and have several rentals in the area. I have clients purchasing there as well. I also agree the Belton ISD schools are a notch above Temple, but that wouldn't hold me back from anything in Temple ISD.
I live in Waco and have been here for 3 years. Very hard to get into the STR market with STR regulations that were changed a few years ago. Most of them are in C/D neighborhoods (anywhere near downtown). I have an LTR right now (4bd/3bth) and it is cash flowing decently. My biggest criteria was looking for homes in good school districts (ie Lorena ISD, Robinson ISD, Midway ISD, China Spring ISD). I would recommend homes in those school districts.
@Noelle Stecher Have you crunched the numbers on STR at Crystal Beach? I know the property taxes add a huge burden to the expense column but asking prices should be coming down so if you are an agent in that market already, you should have a fast track to any motivated sellers listing their beach houses.
Hi Noelle,
Did you decide to invest in Waco?
I live near Waco and have been considering it as well. I’d love to connect and perhaps compare some options or talk them out.
——Deniece——
Try to get near Baylor Campus for Waco. There are some duplexes right now that have great potential. Message me and I'll send you the link.
I actually thought I found a deal in Houston, but it fell through so back to the drawing board.
Hey Noelle! My husband and I have flipped, held long term and now short term as well in Waco. Very familiar with the town and opportunity and happy to share, show you around or answer any questions you have. I echo what everyone else says - you really need to put eyes on properties (and streets!) or work with someone that knows this town and about investing here. The market is getting tighter and there is less margin than there was, but there is still potential. Taxes and insurance costs sky rocketed this past 6-12 months here and it really has changed things. Also, a huge crack down on STR regulations has shifted zone desirability and value. But if you are able to get into that (hugely inflated barrier to entry on those properties) the cash flow can be incredible! Waco has options, just depends on what you're looking to do.
Quote from @Trevor Caswell:I agree the Baylor Bubble is tough. We looked at several properties there. Close in the prices are inflated. Nothing would cash flow at the current asking price. We looked at a 4-plex and it was heavily subsidized by two families that had kids going to Baylor. The last kid was going to graduate and they were looking to exit. Another property a few blocks out had a vacancy problem. I spoke with a local PM and was told if you don't rent by Fall semester it will sit open all year. Very little cross over from the non-student market.
Quote from @Noelle Stecher:I would focus on School districts and established neighborhoods for your search. You will find many charming 1920-1960's homes here in Waco, but your tenants may not be comfortable with the area.
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
School Districts:
Midway ISD
China Spring ISD
Bosqueville ISD
Robinson ISD
Lorena ISD
Waco Neighborhoods:
Dean Highland
Landon Branch
Castle Heights
Brookview
Sanger Heights
Fishpond
Viking Hills
The issue you'll run into is the cashflow on these turnkey rentals. You won't be able to get the rent much higher than $1600-1800 on a 3BR 2BA in most Waco neighborhoods. This is why you may want to look at Hewitt and Midway ISD area, due to desirability from families moving into the area.
Baylor bubble is very hard to break into and oversaturated with landlords with heavy pockets. I would stay away from there unless you have a child going to school there.
Quote from @Pete Harper:Thank you for the wonderful insight!
Quote from @Trevor Caswell:I agree the Baylor Bubble is tough. We looked at several properties there. Close in the prices are inflated. Nothing would cash flow at the current asking price. We looked at a 4-plex and it was heavily subsidized by two families that had kids going to Baylor. The last kid was going to graduate and they were looking to exit. Another property a few blocks out had a vacancy problem. I spoke with a local PM and was told if you don't rent by Fall semester it will sit open all year. Very little cross over from the non-student market.
Quote from @Noelle Stecher:I would focus on School districts and established neighborhoods for your search. You will find many charming 1920-1960's homes here in Waco, but your tenants may not be comfortable with the area.
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
School Districts:
Midway ISD
China Spring ISD
Bosqueville ISD
Robinson ISD
Lorena ISD
Waco Neighborhoods:
Dean Highland
Landon Branch
Castle Heights
Brookview
Sanger Heights
Fishpond
Viking Hills
The issue you'll run into is the cashflow on these turnkey rentals. You won't be able to get the rent much higher than $1600-1800 on a 3BR 2BA in most Waco neighborhoods. This is why you may want to look at Hewitt and Midway ISD area, due to desirability from families moving into the area.
Baylor bubble is very hard to break into and oversaturated with landlords with heavy pockets. I would stay away from there unless you have a child going to school there.
Quote from @Pete Harper:
Quote from @Trevor Caswell:I agree the Baylor Bubble is tough. We looked at several properties there. Close in the prices are inflated. Nothing would cash flow at the current asking price. We looked at a 4-plex and it was heavily subsidized by two families that had kids going to Baylor. The last kid was going to graduate and they were looking to exit. Another property a few blocks out had a vacancy problem. I spoke with a local PM and was told if you don't rent by Fall semester it will sit open all year. Very little cross over from the non-student market.
Quote from @Noelle Stecher:I would focus on School districts and established neighborhoods for your search. You will find many charming 1920-1960's homes here in Waco, but your tenants may not be comfortable with the area.
Hi. I am looking to buy a rental property in Waco, but I am not too familiar with the area. I have done the neighborhood research online and have a general sense of the neighborhoods, but I am looking for any advice from people who know the area or who have investment properties there. What areas are good? What areas to stay away from? Any advice is welcome! Thanks!
School Districts:
Midway ISD
China Spring ISD
Bosqueville ISD
Robinson ISD
Lorena ISD
Waco Neighborhoods:
Dean Highland
Landon Branch
Castle Heights
Brookview
Sanger Heights
Fishpond
Viking Hills
The issue you'll run into is the cashflow on these turnkey rentals. You won't be able to get the rent much higher than $1600-1800 on a 3BR 2BA in most Waco neighborhoods. This is why you may want to look at Hewitt and Midway ISD area, due to desirability from families moving into the area.
Baylor bubble is very hard to break into and oversaturated with landlords with heavy pockets. I would stay away from there unless you have a child going to school there.
Nearly all students lock in their leases in JANUARY for August start date. Also, the demand for student housing will so a slow down this year. They are always increasing their student population but the University closed a few huge dorm buildings and renovated them this past couple years. They're all opening back up next school year so all Freshman will be on campus. The housing that popped up the past few years and hugely inflated prices of rentals in that area will see a dip from the lack of demand. Although it's really a cool investment scene, something to probably avoid for a minute.