All Forum Posts by: Account Closed

Since you mentioned house-hacking, Houston has quite a few tall modern homes in the city. Generally the master suite is on top, the garage (and maybe an office or bedroom) is on the bottom, and in between are community areas (kitchen, living, dining) and a couple of bedrooms. If you are comfortable with roommates, it would be easy to house hack one of those. You could live pretty comfortably in an area with access to nice parks, restaurants, and other amenities. The budget you mentioned could certainly cover a down payment, even if you put the house in an LLC and have to pony up 25%.

Liz

Hi there. I'm following this thread because I have a good friend preparing to move to Midland-Odessa. On her behalf I'd like to glean as much info as I can about the RE market in the area. 

Thanks,

Liz

@Matthew Gullo,

Thanks, you too!

@Brian Burke

Pearland is nice. It has great access to Houston proper from 288. Lots of people who work in the big medical center downtown settle in Pearland for that reason. Pearland also has a U of H campus. Just avoid Brio Superfund Site and anything downstream from it. Also, be aware that a little way north of Pearland, along 288, are both of the Houston  neighborhoods that consistently make the FBI's list of "most dangerous neighborhoods in the U.S." Namely, Sunnyside and 3rd Ward. If you get a place in Pearland, definitely make sure that the front is well lit and has it some basic security measures like a fenced in back yard, etc. It's not a crime hotspot, because Pearland cops are very no-nonsense. Just don't be the easiest-looking target on the block, and you shouldn't have any trouble. 

Also, The Woodlands (north or Houston) is gorgeous and has a medical center, but I think it's mostly homeowners. I'm not sure how strong the rental market is there, and it's a bit lacking in variety for entertainment and restaurants. Woodlands folks sometimes drive all the way into Houston just to have a nice dinner. That market is seriously under-served. There is certainly opportunity there, too.

Liz

@Brian Burke, that's very reasonable and I agree with you. I suggest you also have a look around Bay Area/Clear Lake. There is a good medical center there, (bigger and nicer than Pearland,) and Baybrook Mall has just finished a stunning remodel/expansion, with valet parking and all that jazz. The U of H Clear Lake campus recently became a 4 year school, (previously they only accepted upperclassmen.) HEB (Texas' most awesome grocery store) has been building new stores out there, and a shiny new expanse of suburban sprawl, I mean neighborhood, is going up near El Dorado and Clear Lake City Blvd. It's definitely booming lately and has good access to the coast. Kemah is a hotspot for fishing, boating, restaurants, and a little laid-back coastal nightlife (very different from the city.) Kemah itself is a bit too far for a reasonable commute to a downtown job, but Clear Lake is just about right for lots of white-collar folks who like spending time in their cars, and it's a short drive to Kemah from Clear Lake, which is great for weekend family outings. The actual lake called Clear Lake does have a coastal outlet and a yacht club, and Armand Bayou Nature Center is a delightful park with multiple playgrounds, wooded paths, and a sizable dog park. The biggest downside, IMO, is that since it's close to the coast, the hurricane danger is magnified and consequently so is the cost of insurance. Homes there must carry additional insurance for wind damage. Also, since a developer out there just turned an enormous amount of previously spongy, wooded land, with lots of tall absorbent grasses into a big fancy neighborhood, I suspect the flood danger has increased for the whole area and it will likely flood worse than before. My family members out there are accustomed to getting water right up to the door during the worst downpours, but very rarely does flood water get into the houses. Tearing up and paving the woods and grasslands compromises the natural systems that rapidly return water to the atmosphere, increasing the likelihood of future floods for miles around. I did note, however, that the new development does have lots of ponds and drainage areas. It looks like they are adhering to the regulations and best practices, much better than some developers on the west side did.

The amount of vitriol against a tenant AirBnB'ing a property that appears at the beginning of this thread is frankly shocking! I'm chalking it up to fear and ignorance of the subject. 

AirBnB has built-in Host and Landlord protection insurance up to $1M:

https://www.airbnb.com/host-protection-insurance

A tenant who is listing on AirBnB is going to take "pride-of-ownership" level care (or better) of the property.  It is in their own best interest to do so. Improving the property is good for their business. Surely, we can all understand the power of motivation behind improving one's business? 

For those highly concerned with the safety (and potential liability) of short-term renters on the property, it is fairly cheap and easy to add a basic security system. Keypad locks, a camera doorbell, and a "panic button" ought to be enough to protect against some of the more horrifying things that someone suggested could happen. 

As long as they aren't violating any local codes, and they are willing to be honest with you about it in the future, I don't see any reason to "drop the hammer" on the young entrepreneur. For example, if they partitioned off rooms in a way that violates the fire code, that would need to be addressed. If the neighborhood has rules about short-term rentals, it would be good to know them and discuss them with the tenant to be certain that they know and abide by them as well. 

AirBnB has accountability and protection systems in place for renters, hosts, and landlords. It is a very well thought out, and brilliantly executed, business platform. 

I am not in favor of nickel-and-dime'ing the tenant as punitive action. As a 5 star host, they can easily move their successful business to a new location. In which case, you have just driven out an excellent tenant who keeps the properties they rent in tip-top shape, pays on time, and isn't dependent on a W-2 job to pay your rent. Who could ask for a better tenant than that? From reading the thread, I take it the only real problem was the lack of forthright communication about what they were doing with the property. Yes? The tenant probably kept it under their hat, precisely because they have seen the kind of toxic reactions which appeared in a flood at the beginning of this discussion. Now that the cat is out of the bag, there is an opportunity for growth on both sides.

Good luck in all your endeavors. Embrace the learning experience.

Liz

See you there!

Liz

Millenials generally want to live inside the 610 loop. Many don't like to drive and they want to have access to everything. They want to be able to Uber, bike, walk, or ride the Metro rail to places where things are happening. Also, they tend to be more open minded about living in historically socio-demographicially disadvantaged areas in order to have better access to the city. Of course, I'm only speaking from what I know of the Millenials in my family and friends circle. None of them are "white collar," per-se.

One of my investing goals is to improve living conditions in parts of inner city Houston by re-positioning some of our cool old 1930s housing stock to accommodate class-B tenants, particularly Millenials and retiring Boomers. 

I have been considering looking more closely into getting a SFH near one of the the University locations south of the city and renting it by the room. I have family in the suburbs south of Houston whom I visit frequently and I know the region very well.

When you refer to a Medical Center to the south, are you eyeing Pearland or Bay Area/Clear Lake? 

I'm going to send you a Colleague Request. @Brian Burke

Have you looked into the cost to hire an architect with a seasoned team to build you what you desire? Perhaps compare that cost to getting a spec home version of what you're looking for. 

Here in Texas, people are building "barndominiums," which are pretty awesome little metal home buildings. Maybe something like that is happening closer to you, as well.

It would absolutely be worth your time to look into all available comparable options.

$200-$250/sf ft sounds outrageously high to me, but I'm in a significantly less costly market. Before Hurricane Harvey rolled through here creating extreme demand for contractors, (thus spiking prices,) an experienced architect and family friend told me I could get a good quality full sized 3/2 built for about $150/sq ft here in Houston. I'm sure CA rules and regulations drive up the cost considerably and all I know about CA taxes are that they are really high, so that estimate doesn't really apply.

Good luck.

Liz

Try asking around at meetups. Surely you can get a few personal recommendations for brokers from other investors and maybe you'll find someone to mentor you there, too.