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What areas to buy rental properties in Houston

Hey everyone,

My wife and I are looking to buy at least 5 rental properties in the Houston area over the next month or so. We would like to know where are good areas to buy in?

We cap at 200k for purchase price.
We want min 3 bed 2 bath.
We would like to at least rent out for 1% of the purchase price
We want to cash flow at least $300 with less than 5% vacancy rate
We are looking for areas that are expected to appreciate at least 8% over the next year or so.

Please help. We are open to all suggestions.

Thanks,

Jeremy and Maria

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What areas to buy rental properties in Houston

By Jeremy & Maria Morgan   
Posted on Jan 30, 2017 in Topic: Home Buying
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Hey everyone,

My wife and I are looking to buy at least 5 rental properties in the Houston area over the next month or so. We would like to know where are good areas to buy in?

We cap at 200k for purchase price.
We want min 3 bed 2 bath.
We would like to at least rent out for 1% of the purchase price
We want to cash flow at least $300 with less than 5% vacancy rate
We are looking for areas that are expected to appreciate at least 8% over the next year or so.

Please help. We are open to all suggestions.

Thanks,

Jeremy and Maria
Status: Open
Viewed: 15760
Asked by: Consumer
Posted: 2 years ago
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Gold
Andrea Cloud - Wagner
about 2 years ago
Hi Jeremy and Maria, thank you for checking in with local Realtors on www.har.com. We are happy to help. I work primarily on the north side of Houston in the Kingwood, Atascocita, Humble, Porter, and Spring areas. There are many subdivisions here that would meet your criteria in the current market. Of course, no one can predict with certainty the appreciation rate, as that will also depend on what happens in our economy in the coming years. However, there are certainly neighborhoods at the price point you indicated within master planned communities. Being in a master planned community with great schools tends to help a home hold its value. There are also areas, such as Atascocita, which is not one master planned community but instead is a collection of subdivisions that are well-established and in a growing area.

You have a lot of options open to you as the Houston area is ever-expanding. If you are interested in purchasing in the northeast quadrant of the Houston metro area, please contact us at Cloud Realty. We are a small, boutique firm that provides personalized service and would be happy to help you through this process.

All the best,
Andrea Cloud-Wagner
Cloud Realty
281-359-9999
www.cloudrealtytx.com
andreacloud@cloudrealtytx.com


about 2 years ago
Diamond
Darby Grimmett
about 2 years ago
Hi Jeremy and Maria,

Personally, I feel very strongly about real estate investment, particularly in "buy and hold" properties. I have several properties I currently rent out throughout the Houston and greater Houston area.

Your minimum of 3/2 is a good one (3/1, 2/1, 2/2, and 1/1 are doing to appeal to a smaller number of the population). The cap on the purchase price, renting for at least 1% of the purchase price, monthly cash flow minimum and factoring in appreciation are all good things to consider, however, your exit strategy may have you deviate from this some (especially if the focus is monthly cash flow vs. appreciation). There are some areas where you can purchase a home for closer to $100K and rent it out for more than 10% of the purchase price where you'll end up cash flowing more than that $300 min, but the trade-off is these are in primarily rental neighborhoods, possibly higher turnover and the appreciation isn't there. On the opposite end of the spectrum, you could be looking at a property closer to the mid-$200Ks to high-$200Ks, needs minimal make ready, could rent for 1% (maybe a little less), doesn't cash flow as much per month, but you're in an area with greater appreciation and renter retention. I'd definitely recommend adding schools as an important factor in your rental portfolio purchases. The vacancy rate really has to do more with commercial properties as each single family or town home rental property is treated as an individual and vacancy depends on a variety of factors (number of homes currently for rent in the area, price of the rental, quality of the rental, etc).

I strongly suggest contacting a REALTOR experienced with both sales and leases, representing Buyers on investment properties and Landlords on rental properties in order to discuss what areas/neighborhoods are a good investment.

Let me know if I can be of any further assistance and you'd like to discuss!

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217


about 2 years ago
Diamond
Francois Delille
about 2 years ago
Hi Jeremy and Maria,

This is a topic I adress extensively in my blog: https://www.har.com/francois-delille/blogs_661973
In short, neighborhoods in the path of progress with good schools and low crime will make your best rental investments. There is many such neighborhoods but I would like to consult with you prior recommending a specific one. Indeed I always recommend my clients to invest not too far from their home.
I am an investor myself and buy rentals for both clients and my own portfolio. I also own a property management company and am well versed in making sure your property has 5% vacancy or bellow (0 is not uncommon with us).
I also provide long term financing for rental property and would be glad to discuss all these subjects with you in a private consultation. There are very specific issues related to building a large rental portfolio that are better addressed privately.
You can reach me at: francois@cozy-homes.com / 713 397 8857
Best regards.


Source:


https://www.har.com/francois-delille/blogs_661973\nhttps://www.har.com/francois-delille/agent_FDel

about 2 years ago
Bronze
Jennifer Martinez
about 2 years ago
Jeremy & Maria-

When I work with investors in the 200's range, I always start in areas with decent schools. Once found, I pick neighborhoods which have aged well and are within my clients' budget. After figuring out the neighborhood, we focus on the ones that need the most work in an effort to really keep the price down. Investor fixes the place up in order to rent. In this situation, the investor is set-up to make money due to his minimal purchase.

Jennifer Martinez
713. 337.3843

A phenomenal area for investing is in Cypress, TX. You get a little more bang for your buck, plus new schools are constantly being built.

Feel free to message me if you'd like a list of neighborhoods that armed with your time.


about 2 years ago
Bronze
Laura LoGiudice
about 2 years ago
Houston has been trending West and Northwest. With that said, go for the schools! People continue to move here from around the state, and out of, and the first question I'm asked pertains to the school district. I work as a buyer's agent and only handle buyers. Your appreciation is going to depend on the neighborhood's school zoning. My lease clients want only certain schools so it's a huge consideration for your investment. I refer my clients to www.schooldigger.com for more information about school performance. Let me know if I can be of any further assistance. laura@craftteamhomes.com 713-320-0562


about 2 years ago
Bronze
Linda Jordan
about 2 years ago
I would be happy to consult with you regarding properties in the Katy area. We can review both historical appreciation and current rental rates to determine what best aligns with your criteria and long term goals. Katy ISD will be a strong draw for tenants. Let me know if I can assist.


about 2 years ago
Gold
Dominik Szabo
about 2 years ago
Dear Jeremy and Morgan,

There are many neighborhoods that are worthwhile for this kind of Property purchase and rent out.
The Neighborhoods that I feel are best are the ones close to the Oil refineries, as there is a wiling base of people who want to rent properties.
I would be happy to show you the areas of Pasadena and Deer Park.

Call us for a free consultation,



Dominik Szabo
UTR - TEXAS REALTORS
(832) 844 1724
DominikRealtor.com
** The Doctor of Real Estate in Houston Texas **
" Professional, Courteous, and Informed "


about 2 years ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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