My wife and I are new to Houston and are looking to invest in a duplex on the east side of Houston (East Downtown/Greater Eastwood Area). We have spent a decent amount of time doing online research on both areas and just drove the properties we are looking at today. At first glance, the overall area seems to be pretty rough but it seems like there is a lot of new development going on. Does anyone have any insight to the plan for this area and would we be making a sound investment out on the east side in a duplex?
@Ashton Allen EADO is definitely the next big thing. Well, one of a few next big things. Most of the current redevelopment is closer to downtown, and you'll see spotty new construction elsewhere mixed in with older rundown homes.
Builders seem to favor either larger rowhouse-type communities or the taller 3-4 story houses built on a postage stamp lot with your neighbor's house five feet away.
The problem I have with the area is that you're paying a premium for what the area may become five years from now. I've looked at a few very nicely remodeled duplexes in that area. Asking price was $400,000 - $500,000. But the neighborhood comps are telling me that similar remodeled homes are renting for $1200-$1300 tops. I just don't see any universe where that makes sense unless you're working a long-term strategy.
The same thing is going on in the Third Ward/University area.
Anyway, PM me if you would like to connect and discuss what's going on in EADO.
As Fred said, EaDo has already come up in price significantly as builders have bought up large parcels for the freestanding or townhouse-style developments that have become so ubiquitous in Houston.
I think there is still a lot of opportunity in Eastwood, particularly if you are looking for a duplex that you would like to house hack. As you noted, there are a lot of neighborhoods that have started seeing redevelopment (if you've done much driving around there you've probably seen all the variance request notices). There are a few areas inside the loop that command a slightly lower price point, but in my opinion any major redevelopment there is likely to be farther off.
for rentals im not a huge fan of buying in spec areas... if you want bread and butter rentals, go to bread and butter areas for it. I personally dont think houston is a big equity play city, not now at least... theres several reasons why that i wont bore you with but if you are not buying for cashflow in Houston i think you are making a big mistake.
the area you are talking about is going to be a young professional, hipster, millennial crowd... the risk is though this age demographic is starting to form families and im betting that history will repeat itself and they will find their way to the suburbs ...sure there will still be people that dont want that lifestyle, single professionals etc, but i just dont believe this idea of EaDo will support the market pricing in the 5 yr time frame.
things are starting to reshape in houston surburbs , almost every one of them are starting to have "hipster" "trendy" type of things to be more identifiable to the next generation of buyers.
i think eastwood is nice and it has a lot of character but ask yourself would you raise kids in the area or be willing to be outside late at night... if your answer is no to both then you cant price it as a premium market
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