Best area to house hack in Houston?

Question

Hello,Moving to Houston over the next few months and looking to house hack. Already pre-approved for $550k for an FHA 203k loan. Please recommend best areas in Houston that meet the following:

- 10-minute or less commute to Baylor Medical Center

- Areas with distressed 2-4 unit properties (intend to use an FHA 203k loan to live in 1 unit and rent out the other 2-3 units) that I could purchase and renovate for less than $550k at most with good ARV upside

What I'm seeing online is Third Ward for the most part? True? Opinions? Connections to the local market?

V.G Jason · Answer

3rd War & Eado would fit your budget, but that area is subpar in my opinion. Too many investors swarmed it during covid for airbnb, it's still not particularly "safe", and the appreciation potential is definitely overstated. It only appreciated during covid when investors ran it up on an airbnb metric--it wasn't native Houstonians  that means fundamentally it isn't strong.

For a 10 minute commute though, you do not have many other options. Possible to check out the Montrose area, it's safer but not that safe but way more appreciation-based. It'd also be a bit longer of a commute. It'll likely be a bit out of your budget, though too but that's expected. You'd also be closer to a cooler spots in Houston, in my opinion.

I would only recommend 3rd ward and Eado if you're buying deep. Otherwise, pass.

Matthew Rolf · Answer

@Caleb Hood Hey Caleb!  Sounds like 3rd ward or Eado to me (Eado might be more like 15 mins).  I've seen a few fixer uppers small multis on wholesaler lists...not sure if one would come up in your timeline though.  Feel free to connect if you need any help here!

Brian Schroeder · Answer

@Caleb Hood - Good on you for picking one of the best ways to get into real estate.

From my perspective, you will not be able to cash flow a house hack deal in Houston proper with interest rates being where they are today, unless you buy something that is EXTREMELY worn down for a low price. I have a buddy who successfully house hacked (renting by the bedroom) a duplex in 77033/77087. Keep in mind interest rates were extremely low when he got into the deal. Those zip codes are close to Baylor Medical Center. Are you planning to cash flow the property, or just live in it and reduce your overhead by renting out the bedrooms/units; then reselling it?

Jay Thomas · Answer

Third Ward is buzzing with changes, and there are affordable multi-unit properties within your budget. It's close to downtown, but be careful about potential renovation costs. South Main is also up-and-coming, with historic charm, near Baylor Med, and fixer-upper multi-units, but keep an eye on increasing property values. Eastwood is family-friendly, close to the Medical Center, and has various multi-unit properties, offering a more stable investment. The Museum District, near the Medical Center, has historic buildings, but renovation costs might be higher. Don't forget to explore pockets in Montrose, Heights, or quiet areas in Eado; you might find some good options with your budget and a 203k loan. Happy hunting!

Wale Lawal · Answer

@Caleb Hood It all depends on the quality of live you want for yourself.

East Downtown (Eado), 3rd Ward and 5th Ward may be your best options based on your criteria you listed.

Goodluck and feel free to connect.

Travis Timmons · Answer

I'll second Jason on 3rd Ward and Eado - the path of progress is painfully SLOW. The neighborhoods that are turning are a handful of years, at best, of your car getting repeatedly broken into before you see 20 something girls in Lulu leggings walking their dog at night. Especially if you're coming from out of town and don't know the street to street details VERY well.

If your budget is $550k, I'd rather see you get creative on a SFH house hack in a better area. Something like a live in flip or rent by the room house hack on a single family home in a neighborhood like Montrose, Museum district, or Rice Village.

Caleb Hood · Answer

Thanks Carla! I've sent you a message

Best area to house hack in Houston?

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