Looking for properties in around Medical Center Area
New to Real Estate · Houston · Member since 2019 · 18 posts · 5 votes
Hey BP family,
My name is Tochi and I am relatively new to BP. I have read so many books and actively listen to BP podcasts and other REI podcasts. I am currently in Dallas but looking to move back to my hometown in Houston Texas to go to school in the medical center. Hoping to house hack and use the savings to invest in another home. and rent that out to other potential students/health professionals in my network. Anybody with any experience in that area (around the medical center) care to shed some light on their experiences both good and bad? Also, I can't seem to get away from HOA fees! Are they very prevalent in homes in that area? Thanks so much!!
I think this is a good plan if you can find the right house and the right friends that would like to rent a room in an old house.
There are several neighborhoods around the medical center area that are more or less prime for development/redevelopment.
At least 2-3 between HH and I35 and a couple further up HH. As you mention West Dallas is interesting. Some of that area south of 35 around Hampton/Inwood used to be very very rough, but it is improving it seems. Fairly new Charter school is liked by many. I believe it is Rangers foundation and maybe some other foundation have built the athletic fields around there. People are focused on the area.
I think the biggest trick is I never find any really really hungry UTSW students or residents that want to live there yet. Most seem to be focused around the area in condos/townhomes either renting or buying depending on their finances. Most seem to focus on Oak Lawn area, but some will venture further out to uptown/downtown/Cedars and even further out for residents to Farmers Branch, Irving, and some other cities.
Bruce, I think the OP was talking about moving back to Houston to go to med school.
As far as living near the Medical district, I have a different take. I have a property near the Medrano school, its been a fantastic place to find med students. We have a large SFH rented to 4 med students and its been a cash cow. 3 years ago we bought at 180K, put in maybe 30K, current appraisal is give or take is $425K, We have refinanced it and gotten all of our initial investment back out of the property. Its cash flowing about $900/month, and we still have the opportunity down the road to rebuild into a multi family property.
The area from essentially Wycliff to Parkland, HH to Maple, is imo one of the prime locations in all of Dallas. Almost hate to say it, because that's our most active hunting ground.
There were a couple of developers that were buying any empty lot in sight and that drove up the land values substantially. That I think has subsided somewhat.
But you see a fair amount of gentrification. Much of the area is zoned MF-2 even thought its SFH. There is massive area that has been bulldozed between Wycliff and Parkland headed up Maple. maybe a 10-15 square block area, and that's going to be built out here shortly. I think if you have a long term time horizon, that area is only going to go up over time.
Hi Tochi
It depends on how much you want to spend. You can definitely find neighborhoods without HOA around the area, but without knowing what price range, it is hard to tell you where areas to look into.
Welcome to Biggerpockets!! Nice to meet you! Good luck going forward! I heard a good podcast that mentioned properties around medical facilities. Called them 24-hour cities. Meaning they would be good opportunities if analyze right. Best of luck.
Welcome to Biggerpockets!! Nice to meet you! Good luck going forward! I heard a good podcast that mentioned properties around medical facilities. Called them 24-hour cities. Meaning they would be good opportunities if analyze right. Best of luck.
Thank you Anthony!! Yea I am in the medical field so i'd like to rent out to potential health professionals and medical students. I know first hand that we're always on the move rotating at various hospitals so I think it's a good idea but need to find a good deal first. Im really hoping to find an old raggedy SFH, rehab it and get some tenants living in it and maybe live in it myself!
Hi Tochi
It depends on how much you want to spend. You can definitely find neighborhoods without HOA around the area, but without knowing what price range, it is hard to tell you where areas to look into.
Hey Olivia,
So this would be my FIRST house so idk the idea is to buy maybe a 2 bedroom house with a garage and hopefully turn the garage into another room. Or if I cant do that a 3 bedroom house. Either way price range should be between 50-70k and ultimately start the rehab process. I've read a ton of BP books but im very much so a doer so i think i need to dive in and get my feet wet. Also looking for a mentor to limit the mistakes! Do you know of any properties in that price range? if so what neighborhoods? Thanks for your guidance and support.
I think this is a good plan if you can find the right house and the right friends that would like to rent a room in an old house.
There are several neighborhoods around the medical center area that are more or less prime for development/redevelopment.
At least 2-3 between HH and I35 and a couple further up HH. As you mention West Dallas is interesting. Some of that area south of 35 around Hampton/Inwood used to be very very rough, but it is improving it seems. Fairly new Charter school is liked by many. I believe it is Rangers foundation and maybe some other foundation have built the athletic fields around there. People are focused on the area.
I think the biggest trick is I never find any really really hungry UTSW students or residents that want to live there yet. Most seem to be focused around the area in condos/townhomes either renting or buying depending on their finances. Most seem to focus on Oak Lawn area, but some will venture further out to uptown/downtown/Cedars and even further out for residents to Farmers Branch, Irving, and some other cities.
I think this is a good plan if you can find the right house and the right friends that would like to rent a room in an old house.
There are several neighborhoods around the medical center area that are more or less prime for development/redevelopment.
At least 2-3 between HH and I35 and a couple further up HH. As you mention West Dallas is interesting. Some of that area south of 35 around Hampton/Inwood used to be very very rough, but it is improving it seems. Fairly new Charter school is liked by many. I believe it is Rangers foundation and maybe some other foundation have built the athletic fields around there. People are focused on the area.
I think the biggest trick is I never find any really really hungry UTSW students or residents that want to live there yet. Most seem to be focused around the area in condos/townhomes either renting or buying depending on their finances. Most seem to focus on Oak Lawn area, but some will venture further out to uptown/downtown/Cedars and even further out for residents to Farmers Branch, Irving, and some other cities.
Bruce, I think the OP was talking about moving back to Houston to go to med school.
As far as living near the Medical district, I have a different take. I have a property near the Medrano school, its been a fantastic place to find med students. We have a large SFH rented to 4 med students and its been a cash cow. 3 years ago we bought at 180K, put in maybe 30K, current appraisal is give or take is $425K, We have refinanced it and gotten all of our initial investment back out of the property. Its cash flowing about $900/month, and we still have the opportunity down the road to rebuild into a multi family property.
The area from essentially Wycliff to Parkland, HH to Maple, is imo one of the prime locations in all of Dallas. Almost hate to say it, because that's our most active hunting ground.
There were a couple of developers that were buying any empty lot in sight and that drove up the land values substantially. That I think has subsided somewhat.
But you see a fair amount of gentrification. Much of the area is zoned MF-2 even thought its SFH. There is massive area that has been bulldozed between Wycliff and Parkland headed up Maple. maybe a 10-15 square block area, and that's going to be built out here shortly. I think if you have a long term time horizon, that area is only going to go up over time.
@Tochi Ajiwe check on the east side of 288. Cheap and close to the med center.
@Bart H. Hey thanks for sharing your experience. 900 a month?! That’s amazing. I actually have some friends that live on that side of town and I pass by it frequently. When I moved to Dallas 5 years ago a developer told me about the millions that had already been invested into that area and its taken awhile but I can see the growth already. If I had known anything about real estate I would’ve bought some property then!
I also always have students, residents, research fellows and graduate students always hitting the UTSW e-mail listserv looking for a place to stay so maybe we can connect and I can send some of them your way if you ever need some tenants?! Again, thanks for taking time out to reply.
@Tochi Ajiwe
So glad you are starting out with your Investment career. Please keep in mind most properties you find for $50-70K will be an all cash purchase. So if you don't have the reserves and will be looking for HM, please make sure you have a plan before you buy your first place because the holding costs can eat you alive. Also if you want to convert a garage please consider adding a car port because with the hail storms Dallas can get, more people are wanting garages or at least covered areas for their cars.
Plus yes @Bart H. $900/mo is awesome but look when he bought it, at what price, and what it would appraise for now. I presume he's been able to increase rents with the market and he's been doing this along time so he has a plan, routine and team.
Keep staying active in the forums and build your team! Here's to your success!
I think house hacking is a great idea, when it comes to the TMC(Texas Medical Center), it really depends on your financial and your long term strategy. Meaning if capital isn't a problem and your long term plan is to cash-out in 5-8 years, then i would lean more towards new construction in that area. However if funds are low and you want to cash out in 2-4 years, then i would lean towards a 4-5plex that needs work. Either way, as the largest medical center in the world, TMC area will continue to grow and appreciate for the foreseeable future, which makes Houston TX a great place for investments @Tochi Ajiwe
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Hey @Tochi Ajiwe I'm looking to do the same with my house in midtown. Think it could work for med students?
Hey BP family,
My name is Tochi and I am relatively new to BP. I have read so many books and actively listen to BP podcasts and other REI podcasts. I am currently in Dallas but looking to move back to my hometown in Houston Texas to go to school in the medical center. Hoping to house hack and use the savings to invest in another home. and rent that out to other potential students/health professionals in my network. Anybody with any experience in that area (around the medical center) care to shed some light on their experiences both good and bad? Also, I can't seem to get away from HOA fees! Are they very prevalent in homes in that area? Thanks so much!!
HOA fees are annoying, but for the most part they cover costs that you'd have to cover yourself if there was no HOA. So they net out to what you'd spend anyway (for the most part -- being in a high rise or something is different). The HOA fee for the townhomes I bought is about $170/month but covers insurance, grounds maintenance, common area electricity, gate maintenance and some extra to fund a reserve for capex items.
Anyway, just saying that so you don't rule out something that has an HOA, for something that doesn't but will cost the same when you pay for the stuff an HOA would pay for.
@Cody L.Thanks for the insight! Didn't know HOA fees covered all that. I thought they were just a burdensome cashflow eating expense. Will definitely look into what the HOAs in my area cover.
@Andrew McKinnon I think it could definitely work. I have a friend who is renting out a home in Dallas because shes not ready to buy yet. There are tons of medical students that start searching for homes to rent or buy around March after we figure out where we will be for 3-7 years so be on the lookout during that time.
@Holly Brown That would be awesome. I definitely will shoot you a connect! DO you own any properties and are if so where are they located?
@Daniel J Dominguez Im definitely going for buy and hold rental properties but why do you believe a newer property is a better investment if I have capital?? Still learning alot but it seems counter to everything I have been reading and learning about, being that I should buy a good property below market and fix it up if need be.
I don't think you'll find anything reasonable in the actual medical center area. Third ward is a better area for cash flow - buy low, renovate and you'll see possibilities. I had an apartment in the med center area proper and it was absolutely pointless -plus with all the new condo's that have come up, people have their pick and can really squeeze you. Housing is very expensive.
And remember, this is Texas not NY. People like their space , they won't be rushing to cramp together in a house when for a few hundred more they could have their own relatively nice place ($1200 -1500).
The reason i say to do new construction if you have the capital, is because of what @John Collins said, people will flock to the new shiny object every time. Also your shelf life of the property will last longer, youll have a lot less maintenance costs, youll generate a buyer/tenant quickly, and you can rent/sell for the maximum amount in the area.
on the flip side, you wont have as much equity as you would if you bought low and sold high. Thats is always the most profitable approach, however in those areas, the likelihood of buying at a low enough price and renovating to profit is a challenge. The few properties, if any, that are actually good deals there are very few and far in between.
To summarize, it really depends on your strategy. Each approach has it pros and cons but Ultimately theres one thing that reigns supreme and thats Location, Location, Location! If you have prime location then you will make money @Tochi Ajiwe
@Cody L.Thanks for the insight! Didn't know HOA fees covered all that. I thought they were just a burdensome cashflow eating expense. Will definitely look into what the HOAs in my area cover.
@Andrew McKinnon I think it could definitely work. I have a friend who is renting out a home in Dallas because shes not ready to buy yet. There are tons of medical students that start searching for homes to rent or buy around March after we figure out where we will be for 3-7 years so be on the lookout during that time.
@Holly Brown That would be awesome. I definitely will shoot you a connect! DO you own any properties and are if so where are they located?
@Daniel J Dominguez Im definitely going for buy and hold rental properties but why do you believe a newer property is a better investment if I have capital?? Still learning alot but it seems counter to everything I have been reading and learning about, being that I should buy a good property below market and fix it up if need be.
Technically the HOA is a legal structure owned by the property owners for their benefit. The idea is for them to be revenue neutral. So in theory, the money they spend is just the aggregate money the owners would be spending if there were no HOA. I don't get the beef with HOA cutting into profits unless you're talking about a high rise where they can be $500-1000+ because they're paying for door men, and elevators, and a huge amount for capex, high end amenities, etc. But a normal townhome/condo HOA should be pretty close to your general home ownership costs if it were not there.