All Forum Posts by: Account Closed

Just purchased a HUD home in Houston and the formula I used was 91% net to HUD. It worked. I might have gone a little less (88%?), but the home was already a steal. Beyond this forum, if you google 'winning HUD auctions' you will find many, many articles from investors who have successfully bid/won HUD homes and their formulas.

@Michael Delpier totally agree about high-rated schools leading the way on areas to invest in Houston.  It's the main part of my criteria purchasing buy and holds there.  Also commands decent rent and better tenant base.  And you are correct, there are still deals out there in Houston, just have to look and be firm on price.  If your offer is not accepted, on to the next.

Nice work and congrats! I'm also on the road to 10 properties using conventional financing, but after 10 will have to use a more creative financing approach. Are you looking at portfolio lending or other avenues to get to 25 properties by 2017? Are your investments SFRs or multi-fam?

Thank you @Fred Weiller and @Jerry Ta - appreciate the replies and will consider your reco's.

I'm building my portfolio of SFRs in Houston area, and thought I had signed up with the best property management company in town.  Turns out, I was wrong.  Now I'm locked into a year contract with them.  For future properties, I'm in search of a better fit and was referred to Precision Realty & Management as an option.  Anyone work with them?  Or can recommend a great property mgmt company in Houston area for both single family and small multis? Thanks.

Hi Sue-

Thanks for the reply and link--great info!  I actually have rental properties in Texas (Houston), not California which I should've clarified in my post.  The Bay area is way too expensive, so I moved my search to much more affordable Texas.  

I discussed pet rent with the property management company I use, and they suggested not asking tenants for it (to remain competitive), plus they have their own pet policy/procedure.  We collected the additional security deposit ($500) and the mgmt company charges tenants a 'processing fee' then guarantee up to $2500 additional coverage if repairs are needed beyond the $500 deposit.  I'm fine with that.  Yes, the mgmt company made a little extra but I like having the additional coverage if it's needed.

Hi Rupam-

I have come around on my view of Houston, once I had a better understanding of all costs involved now that I have purchased three properties. I have two more under contract.  I am careful of the neighborhoods I'm looking in, and again use top school districts as a qualifier if I will invest in the area.

Regarding the oil industry's effect on Houston economy, that certainly plays into it, but it is a diversified market and there are still large companies moving into the city. Cost of living is lower vs. other areas.

The prices seem steady, and realtors I've spoken with confirm appreciation is slow but steady (I can't expect the fast appreciation of NYC or SF). There are deals out there, but it's competitive and I may wait until fall to buy any more (when inventory should be better).

Lots of good information here in the replies, and I like the idea of charging a pet rent per month, in addition to the pet deposit. I have prospective tenants for my SFR with two dogs (85lb lab, 25lb schnauzer), and in addition to the $500 deposit, will ask for a monthly fee for the pets. What's acceptable - $25 or $30 per month on top of rent? Thanks.

I am currently investing in single family homes there.  I have an excellent realtor, accountant, lender, property manager, attorney.  The only thing I'd caution is estimating realistic expenses.  I have every spreadsheet out there, have over-analyzed hundreds of properties, and just got hit today with higher than expected insurance costs (double my estimate).  Also, know that property taxes are higher in TX than CA (where I live).  The margins are slim ($200/dr) and I was very pro-Houston a few months ago, but may move my search elsewhere.

My criteria is 3/2's or larger in excellent school districts built 2007 or later.  There's a lot of inventory out there, but triple check your numbers before making a move.