All Forum Posts by: Thierno Gueye

+1 for @Holly Brown & @Gustavo Delgado

Houston has plenty of opportunities at multiple price points for an active investor. While some markets like Little Rock or Memphis may have lower entrance costs, they aren't without their own risks, and Houston has historically provided consistent and stable appreciation without the major dips smaller markets tend to endure.

This is certainly the first time in a while I'd consider us to be entering a buyers market, so timing should be great for those willing to look. 

Insurance is going to be a big factor in your opportunities here, so I'd suggest focusing on the western half of the Greater Houston area. Generally better school districts, more development, lower insurance rates, etc. 

Richmond on the South all the way up through Conroe should net you some good rental potential. 

If you're interested in a local property managers perspective of any rentals you're considering, I'd be more than happy to chat with you about them. I've been managing all over Houston since 2010, so pretty familiar with markets. 

@Thierno Gueye,

Welcome to the BP community.

It looks like you've put together a nice tight buy box. On the forum, you will get a lot of opinions on where the best market to make your first purchase is. I think this is the most important step. For buy and hold work properly you need to be in a market that is growing in population and employment. It is also good to look for market that has good landlord tenant laws. Whether this be next to you in Houston, or in another market depends only on your investment goals.

I would caution you that if you were looking for an area that has good metrics and will get in the path of appreciation it may be hard to find 10% COC at 20% down. There are many deals available on the market but if you don't solve for one of the bigger problems in the market being high interest rates it's hard to make things cash flow at the levels you're looking.

I would be happy to discuss what we are seeing more and what we are being able to solve for.

Best of luck in your REI journey

Hey @Thierno Gueye welcome to BP. @Holly Brown above is correct in that inventory is sitting for longer here in our Houston market and there are deals to be had whether on market or off. Have you considered a duplex to help achieve your COC return goal? I like duplexes because it helps lower the risk of the property by having two sources of rent.

Have you considered building your own properties to rent out? This is a longer and more advanced process but with the right people on your team, you can easily see huge forced appreciation gains and you have a NEW rental product at the end of it so Hardly any CapEx expenses for the near term.

I am a central Houston agent, investor and developer; feel free to reach out with any specific questions. 

- Chris Kersey 

@Thierno Gueye,

Welcome to the journey - you're off to a very strong start! You’ve already defined a clear strategy, which puts you ahead of most new investors.

If you're open to investing outside Texas for better returns or diversification, here are some landlord-friendly, investor-friendly markets with potential for your target cash-on-cash return:

Midwest:
Indianapolis, IN - Strong rents, low property taxes, lots of solid PMs
Many SFHs trade below replacement cost

Cleveland, OH - Low purchase prices = higher CoC
Be selective about neighborhoods and PMs

Southeast:
Birmingham, AL - Cash-flow rich, very landlord-friendly laws
Strong PM options + below market deals still available

Columbia, SC - Military + student tenant base, lower entry points
Appreciation potential and steady rental demand

Tips to Hit Your Return Goals:
Work With Investor-Friendly Agents
Find ones who know how to spot value-add potential or off-market deals
Vet Property Managers Early
They’ll tell you realistic rent numbers and where to avoid
Use Deal Analysis Tools
A simple spreadsheet or calculator like the BiggerPockets Rental Property Calculator helps you keep emotions out of it
Plug in real taxes, insurance, maintenance, vacancy, and PM fees
Look at Light Value-Add Opportunities
Cosmetic upgrades ($5K–$10K) can bump ARV and rent, and still be manageable for a first-timer

Know Your Exit Strategy:
Will you hold long-term, 1031 into larger properties, or refinance in 2–3 years?
This helps guide your risk tolerance and loan structure

You’ve got all the right ingredients - now it’s about finding that first solid deal to prove the model. Let me know if you ever want to go over markets or look at deals side by side - always here to help!

Best of luck,

Melissa

your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools. 

your in Houston, focus in Houston so you can easily be around your investment. There is a lot of inventory as sales are down so you should be very aggressive with your offers, almost to the point of offending the seller. Due you diligence, especially with a dwelling policy (landlord ins) cus its expensive! You're gonna need to put a heavy down payment to somewhat cashflow because rents are not keeping up with expenses. I would focus in Cypress, Katy, Humble areas due to the schools. 

Hey Thierno,

for your first buy-and-hold, look for below-market deals in high-demand areas. Consider out-of-state investing for better cash flow, lower property prices, and higher rental yields.

With 20% down, aim for 10-12% cash-on-cash returns, or 8% if low-risk. but be sure to vet property management companies if you're outsourcing, especially in out-of-state markets.

There are literally thousands of investors looking to do the exact same thing you've stated here.

So, how hard are you willing to work to beat them to properties that meet your criteria?

Hey @Thierno Gueye!

Sounds like you've got a clear game plan, which is huge for getting that first deal done right. With your focus on SFHs, a 20% down conventional loan, and a strong CoC target, you might want to look at out-of-state markets where those numbers still pencil out. Memphis is one to consider! Properties are still affordable (many in the $100K–$150K range), and with the right team in place, you can hit that 10–12% CoC mark, especially in B-class neighborhoods with low vacancy and solid tenant demand. It's also very investor-friendly with strong property management infrastructure, so outsourcing the day-to-day is totally doable. Plus, buying below market is still possible here, especially when working with investor-focused teams that have access to deals before they hit the public market. Let me know if you'd like to see what that looks like in real numbers! We help first-time investors get going the right way here all the time.