All Forum Posts by: Lily Wang

@Linh Pham

I think now is very tough in Houston. The houston authority has lowered the standards by 30%. Which means the decent rent tenant pool got much smaller. I rented several houses via affordable housing, there were frequent inquiries but just a few will get through. Now I have my last property sat more than a month. Still not locate a tenant.

Hi, I've listened to some episodes of the Landlord Diary, and many hosts mention that when they do rental arbitrage, they price their properties at 2 to 2.5 times the base rent. This seems unrealistic to me. After checking the Houston market, I've found that rents are typically only 30% to 50% higher than long-term rental rates, which makes rental arbitrage seem less viable.

I'm wondering if these hosts might be exaggerating their profits to sell their expensive courses. Any insights you could share on this would be greatly appreciated.

@Wesley I.

I live in central Houston, not far from energy corridor. I’ve notice there are several extended stay hotel.

Any location within 30min from my home is acceptable for me.

I think 77388 might be good as well.

Quote from @Allen Duan:

Hi Lily! I have a few connections to MTR operators in Houston I can share. 

Speaking to the more frequent turnovers, it is more than LTR but not as much as STR =) You just need a good system to handle turnovers and you'll be fine.

Overall, for the MTRs my company manages, we get 80% occupancy.

It will differ by market, but I find 1 bedroom units and 3 bedroom houses do the best for MTRs. It matches the typical demographics who rent MTRs: individuals or couples for 1 bedrooms, families for 3-4 bedroom homes. I'm in Los Angeles, so it should be similar to a larger market like Houston. 

Happy to answer any further questions!

 Hi, Allen, Thank you very much. Could you please share the MTR operators to me? 

Quote from @River Sava:

Hey Lily, I think you're on the right track by considering MTRs, especially with the challenges you're facing in the Section 8 space. MTRs can offer a nice balance between the steady income of long-term rentals and the high cash flow of STRs without the constant turnover.

In terms of locations, I've noticed that areas close to hospitals or corporate hubs tend to do well since travel nurses and professionals on temporary assignments often seek out these rentals. Property sizes can vary, but something with a couple of bedrooms usually appeals to a wider range of tenants.

As for Houston, it seems like a solid market for MTRs with its strong medical presence and diverse industries. Happy to connect and send over some info that you might find helpful. Good luck!

Thank you for your reply. As to near medical center for traveling nurses, is 1b1b works better? To be honestly, I do not like condo/townhome as investment.  how about locations near energy corridor and woodlands? will 3b has a steady market? I know insurance company need large unit. is it easier for 3b~4b to find tenant? 

Hi, I’m Lily, and I live in Houston. I started long-term rentals last year with a focus on Section 8 properties. However, the Houston Housing Authority recently lowered the payment standard significantly, by over $1,000 per month, which has made this strategy less viable.

Now, I'm considering mid-term rentals (MTR) for better cash flow and less management compared to short-term rentals (STR). But I'm concerned about the challenges of frequent turnover and vacancy rates.

If anyone has experience with MTRs, I’d love to hear your insights! What locations, property sizes, and target groups work best? Is this a good investment strategy in Houston right now?"

Thank you.

@David M.

sorry，it’s 400k. In some tier A area of houston.

You can get new construction 4-5b at 37-40w. And if you rent to section8 tenants. The max rent you can get for a 5b is $4600. Which will net gain around 2k cash flow a month.

If someone interested. I can help. I’m a investor focus on long term cash flow and have agent license.

@John Underwood

Thank you for your inputs. Since the max rent for this area is 2100 for 3b. Will the government pay more than that?

@Nicole Blankenship

I recommend Houston.

It’s possible to buy a new construction(4-5b) in some parts of houston under 40k and get a cash flow close to 2k/month and good appreciation.

I myself are buying and holding too.

@Venkat P.

It’s possible to buy a house in some parts of houston under 40k and get cash flow close to 2k/month from just one rental.