Updated about 8 years ago on . Most recent reply
Advice Needed on Houston Market Analysis
Hi BP,
I am a novice investor located in Houston area that has never done a deal. This is my first post in the community. I have been looking for opportunities to invest in either single family or Multifamily rental properties. After about two months searching on MLS, I realized that it is extremely hard to find any that is close to 1.5% rule. I can find 1% deals but with my conservative calculation (10% for repair/maintenance, 5% for capital expenditure, and 10% for property management etc.) those cannot bring me positive cash flow, let alone $100/door that I aim for. At this moment, I am kinda lost. The housing market in Houston is hot, and there is a lot of competition even for seemingly not good deals.
I would really appreciate any advice/analysis on 1) Is the Houston market overheated right now? 2) What areas in Houston are more worth looking at? 3) Should I stick with 1.5% rule if I wanted to buy and hold. 4) Should I explore other niches that might be more profitable?.
I have to add that I have only been in contact with one real estate agent and one wholesaler in the area. So it can well be that I am not trying hard enough to find deals. I look to network more in the future. I guess this post is a good start for me. :)
Many Thanks in advance.
Best Regards!