Where to BRRRR in Houston?

Question

Hi everyone! I'm a new investor based in Washington, but I'm planning to invest in Houston since I have family there. I'll be visiting Houston soon and would really appreciate any recommendations for neighborhoods where people have successfully implemented the BRRRR strategy. From what I've seen on sites like Zillow, the numbers don't seem to make it clearly viable—homes aren't particularly cheap, and achieving an ARV of over $200k often results in rents around $2k, which doesn't seem to cash flow well. I'm still learning and would love to hear your thoughts or advice!

Daniel Tanasa · Answer

Hey David,

The BRRRR method works in most parts of Houston if you find the deal cheap enough. I did it successfully in  Katy, Cypress, Spring, Sugar Land, Kingwood, Sugar Land and Houston. I like the small single family homes around 1500sqft, 3 bed 2 baths with an ARV up to 300k. But that's just my strategy, there are many other ways to do it and many other parts of town where you can do it successfully.

If you plan to pull all your money out, most likely you won't find anything on MLS, and you need to focus on off market direct to seller marketing or buying it from wholesalers. I bought most of mine from wholesalers.

If you need any help with the process feel free to send me a DM and I will be happy to ppint you in the right direction.

Good luck!

Felipe Mendoza · Answer

Houston has so many options. It really is going to come down to your strategy. There are neighborhoods that match different strategies. The great thing is Houston is constantly growing and the need is and always will be there.