All Forum Posts by: Sharon Tzib

I had to laugh at that. My first property was in N Calif back in 1998, $198K 3/1, built in the 50's, rented it for $1795. Barely cash flowed, but w/ the lower Calif property taxes, I broke just about even. In 2006, sold it for $565K! I think $140K 3/2's with 5-8% coc is pretty darn good, which is still out there in Houston, but one must dig, as you've said. I guess it's all about perspective, huh?

You are correct, no one knows what's going to happen w/ oil, but its decline started two plus years ago and Houston has more than weathered the storm. As it turns out, oil & gas accounts for about 30% of the Houston economy. And it's not our dominant industry any more. See the latest from the BLS http://www.bls.gov/regions/southwest/summary/blssummary_houston.pdf It answers @Hersh M.'s question about why do people keep moving here. Our unemployment rates are about the same as the national average, but our wages are better overall, we have a lower cost of living, no income tax, and great weather most of the year. 

Having said that, I believe Houston's market is going to start normalizing. This isn't because of any scary "bubble" or "crash" caused by oil, but because A, it's historically that time of year where the owner occupants with kids are back in school, which leaves us o/o's w/out kids, transplants, single folks and investors - demand will be down. B. inventory is up, finally (yay!!). Per July's Housing stats from HAR, we now have 4 month's inventory (http://www.har.com/content/newsroom). This is a very good thing and is already starting to have effects in the market with price decreases, something I haven't seen in the last two years at all. 

Another thing not being talked about (at least that I've seen on any of the forums) is the affordability factor. Nationwide, people are being priced out of the market, and Houston is no different. Buying a home is becoming harder and harder for folks, so if supply continues to increase but buyers can't purchase, that will have an automatic normalizing effect on our market. 

I realize anything I say as someone who makes her living selling homes can sound self-serving :) but I really am quite bullish on Houston, and I think the next six months are going to present an awful lot of opportunity for investors who still believe that Houston has a lot more going for it than just oil.

@Donald Hendricks - give @Jerry Ta a call. All of my investor clients have been quite happy with him.

Hi @Victor P.. Welcome to the world of investing :) If you care to learn more about multi families in Houston, send me a PM. I've helped clients do what you are wanting to do.

http://www.har.com/content/newsroom

Houston Real Estate Highlights in July:

• Single-family home sales fell 8.8 percent with a total of 7,204 units sold;
• On a year-to-date basis, single-family home sales are up about one percent;
• Total property sales fell 8.6 percent to 8,571 units;
• Total dollar volume declined 9.0 percent to $2.4 billion;
• At $230,000, the single-family home median price rose 4.1 percent to a July high and second all-time high;
• The single-family home average price declined 0.5 percent to $292,316;
• Single-family homes months of inventory climbed to a 4.0-months supply, its highest level since November 2012;
• Townhome/condominium sales fell 7.4 percent with the average price down 2.5 percent to $197,104 and the median price up 4.5 percent to $159,900;
• Leases of single-family homes were up 2.3 percent with rents up slightly to $1,879;
• Leases of townhomes/condominiums soared 10.6 percent with rents flat at $1,630.

Travis, I always tell my clients that in Houston, it's not a question of if you will get a foundation issue, but when. The good news is, because it is such a common problem due to our clay-based soil expanding and contracting with the rains and heat, it's a pretty competitive field. Your estimate seems really high to me. I just got a quote for 18 piers for $5400, lifetime warranty from http://levelcheckfoundation.com/, whom I highly recommend as being very honest and reliable.

You should always try to get the seller to either do the work and/or credit you the cost at closing for the whole amount, but in this strong seller's market, that can be very hard to do, especially if they have a back-up offer in the wings, which many smart sellers do. So then it's a function of your numbers. Does the deal still work if you have to pay for any or all of it. I would definitely use the higher estimate to negotiate with, as well, but if it comes down to you having to cover some or all of the cost, then at least you should have 2-3 estimates to determine how economically and proficiently it can be done.

Foundation issues can be very scary, and I have had a handful of buyers walk away from a deal because of it; but I've had more continue on because they know it is a crap shoot trying to find any property that is immune from this issue in Houston. Hopefully this is helpful. Good luck with whatever you decide.

Hey @Dustin Cavalier! I'm an investor myself and have been lucky enough to help many, many BP investors find buy and hold rentals in Houston. Let me know if I can help you in any way. Good luck!

Before you purchase a rental property, review the rental comps and see how long a home typically takes to rent in that neighborhood, so you'll know what is "normal." Ask your realtor if you are getting any apps at all. If you are, then you know you're priced right, it's just a matter of accepting a quality tenant (I reject lots of apps for my clients if they don't meet certain criteria). If you aren't getting any apps, or worse, showings, then you need to lower your price. 

Hi @Naeem Kapasi - sorry, BP didn't notify me of your tag. Most of my investor clients don't look at a lot of homes. They are able to do all of the qualifying online, and then they only go see the truly worthy properties. My average investor only looks at about 4-6 homes before offering and purchasing. Having said that, I place no limits on how many properties I am willing to show a client, as long as they are financially capable to purchase, serious, and motivated, I will work with them to get them the deal they are looking for. Email or call me and I'd be happy to discuss this more with you.

Glad to see you've finally arrived @Naeem Kapasi. Champions Real Estate school is a very reputable school here in the Houston area. Tons of annual fees go along with being a realtor, however (MLS, NAR, TAR, your broker, E&O insurance, just to name a few), and having access to the MLS, so make sure it is really cost effective for you before jumping in if you will only be using it for investing. You're better off using a buyer's agent for free than getting licensed.

Most of Cypress and SB are pretty hard to cash flow in for buy and holds. Rents haven't kept up with home prices. 

Good luck with whatever you decide! 

Hi @Jeremy Bates! I've been an investor since 2002 and have helped well over 15 BP investors purchase buy and hold rental property in Houston in the last year. Almost all of them were newbies. Feel free to PM me and I'd be happy to discuss your goals further with you.