Multifamily in Bryan-College Station

5 Replies

I’m researching markets for multifamily investment. My goal is buy and hold for retirement cash flow. Looking at smaller duplex or fourplex. I assume the local market is driven by A&M student housing. Can anyone share their experience both good and bad. I’m familiar with student housing having managed a 20 unit complex near a university. Occupancy rates, how is the rental market doing? Thanks, Pete

Doing some additional research.  I found the statistics on vacancy rates and rents.  The numbers look promising. Vacancy rate is 3.9%, below Texas and US average, Rents are still low however, below Texas and US median.

Pete, I am very familiar with the market as I once leased to students back in 2006-2008. I have broker friends in the area, and I am a commercial real estate appraiser in TX. The BCS market is actually over-built for student housing. I recently went to a conference where Meredith Wolff from Fourpoint Investments spoke. She indicated that BCS was one of the least desirable places to invest due to the high vacancy. She was speaking directly to the institutional grade student housing apartment complexes, however. I'm sure this plays into the duplex-fourplex market as well. I worked for Terry Thigpin at Century 21 in town. I believe he is still there. Feel free to give him a call regarding the market. 

My plan was to invest into the market in hopes of having a rental for my kids when they went there in 20 years, but have since pumped the brakes. I hope this helps. Take care!

@Jason Wagner . When I look at the vacancy rate statistics in attached link BCS is below Texas median. Stats only run to 2016 however. The other TX market I’m researching is Killeen. Here the vacancy rate is over 2X BCS. Prices in BCS are higher than Killeeen. What other TX markets are you looking at? I hear there is still flood damage issues in Houston. I had a beach front duplex near Galveston. It did well on rental with one side full time and 2nd side weekend rental. Everything was going well until first tropical storm flooded with 18 inches of water. Rebuilt only to have Hurricane come 9 months later with 5 foot of water. After that I’m done with flood prone areas.

I haven't started looking at other markets yet. I am waiting until I have a good chunk of change saved up to invest. I haven't purchased anything yet, but I analyze a deal once a week on average. Most of those deals are in DFW. 

I hear ya on the flooding. That's a good note that I'll commit to memory.