Investing in a foreclosed home in Houston should be a part of your portfolio! We have been helping investors buy foreclosures in Houston, Pasadena, Katy, innerloop Houston, Spring, Cypress Fairbanks and Tomball. Sellers are throwing in the towel and accepting low offers for properties which appraise at much higher rates.
Tips our investors have found useful
1. LOCATION, LOCATION, LOCATION. Where your property is located has everything to do with the resale value and rental rates. Subdivisions, school zones, shopping, and amenities will determine your properties value now and in the future. Abundant land, no zoning, and reasonable housing costs have all contributed to Houston’s growth. Foreclosures are popping up in innerloop neighborhoods and planned communities.
2. Stick to homes requiring only minor repairs. I have a homebuilder and a roofing contractor for clients. They will not buy foreclosures with foundation or major problems. There are plenty of foreclosures which require only paint, carpet, minor sheetrock work, and appliances. These are easy repairs that can be contracted out if necessary. Leave the money pits for someone else.
3. Be prepared to invest money in your investment. As a general rule the newer the home the less money will go into maintenance. If you have bought an older home, be prepared to spend money yearly to keep the home up. There are always minor roof repairs, carpet, and siding to replace. Because of Houston’s rapid growth in the last 7 years, it is possible to buy a newer home which will not require maintenance for years to come.
4. Numbers are everything in Real Estate. You are not trying to beautify Houston. You are trying to make a return on your investment. Know when to walk away from a deal. Most important study the area you want to invest in. When that great deal arrives it will not last. You must be able to recognize a great deal when you see it. Property values may stay at the current level or perhaps even drop. Be prepared to be a landlord for 10 years if necessary before selling your investment.
5. Square footage, Bedrooms and Bathrooms. Like money you can not have enough of them. When looking at properties remember your resale value and your rental rates are directly dependent upon these factors.
6. The Real Estate market is determined by supply and demand. The city has abundant vacant land on which to expand. New affordable housing is being built with mortgage assistance programs for those who can not afford a down payment. These factors make Houston an extremely hard city to make money on a “flip”. The good news for investors is that the percent of owner occupancy in Houston is below 50%.
7. Your time versus a Property Manager. Your time is valuable. You could be earning more money or playing with the kids. If you don’t want the responsibility of being a landlord, then it is possible to hire a property manager to do this job for you.
Call Bill Edge at 713-240-2949 to see Houston homes in 24 hours or less