investments in South Park, Sunnyside and Southcrest? (Houston, Beaumont: for sale, foreclosures)

[F2BBS]

So I'm seeing a couple of completely dilapidated homes in these neighborhoods for sale for 4 digits. Scratch those off the list and move up to the $20-25,000 range. Snag up a few of them for cash, patch/fix them up to a minimum standard (much my partner & I can do myself), then rent them out for the going rate of about $700-900/mo. After 3 years each should pay for itself and afterwards is pure profit. Probably would incorporate to protect against lawsuits. How feasible is this? I'm actually surprised the lots are valued so low considering the proximity to downtown and the Medical Center.

[hbcu]

I been said this is the area that will be the next to change but the difference here than the heights is people own the small homes and the taxes are damn near nothing out there

When South park was the place to be folks left overnight and the homes sold for nothing...however, developers have been scared as a whole to attack those areas as those residents aren't easily moved out compared to the Heights and 4th ward.

[jd433]

Sir, what your are describing is something I have been doing for a while. In that area there are many opportunities at the tax auctions as well as foreclosures on the MLS. Get a copy of The Daily Court Review especially on the last Tuesday of the month and look in Precincts 6 and 7 . You will have to load all the property addresses into your gps and then drive around and take a look at them. There are usually several homes with starting bids of $5000 or less. The key is to find one with a "LIVEABLE" house on it. You should have no problem getting one for less than 25k that does not need too much work. They will all rent for at least $650 a month. Also your idea works great in other areas that do not get as much attention as the South Side of Houston. Liberty County, Waller County, Brazoria County, Chambers and even the Beaumont area. Really just about anywhere there are tax sale and foreclosure deals can be a great place to buy. It is all about the research and homework you do as well as how lucky you get.

If you want to buy off of HAR you will need daily alerts every morning. This is because most of the best deals on HAR you will never know about otherwise because they are sold in a single day or 2 at the most.

Incidentally to protect against law suits instead of incorporating it may be better to increase your homeowners insurance liability coverage to say $1,000,000+ and schedule all your investment properties under the liability policy. Also get a renters policy for your tenants. it costs only $120 and carries $100,000 in liability insurance per tenant. You can even make a claim against their liability policy if they breach the lease or vandalize the property.

[hbcu]

I knew someone who ran the tax sale...foreigners show up with the cash overnight

South Park is one to watch for down the line...

[tstone]

$25,000? That's crazy. Was that area built on/near a superfund or something??

[hbcu]

area got a bad rap in the 80s....if the homes were kept up, it would look just like the heights.

[jd433]

Yes, these areas have a bad rap. It is also backed up with statistics. Both of these neighborhoods are among the top 25 worst neighborhoods in the US. they even rank above the worst areas of Detroit. This combined with excessive blight has cause the area to be one of the lowest priced areas in Houston. However all of this is changing rapidly as land inside the loop is becoming a commodity. There are now many new homes being built right next to other homes that are older, blighted and even abandoned. This gentrification is going to make a bright future for these neighborhoods. Also, the rental market is very tight in Houston.

[DJboutit]

No way 25 top worst sorry but it still not worth a investment I would say 77045 or 77085 would be a much better investment

[jd433]

Originally Posted by DJboutit

No way 25 top worst sorry but it still not worth a investment I would say 77045 or 77085 would be a much better investment

Well 77085 is not exactly a bargain Zip Code. That area is a bit more expensive I think because of Its location and Proximity to everything plus the quality of neighborhoods in that area averages much better than the south side or 77045 (Hiram Clarke) area. Now I will agree that 77045 has some good bargains. I just saw a 3/2/2 go for 39k. I used to see homes in the 25-30k range there a year or two ago before the market came back.

[tstone]

Originally Posted by DJboutit

No way 25 top worst sorry but it still not worth a investment I would say 77045 or 77085 would be a much better investment

This says 6th most dangerous in the US

Two Houston neighborhoods called most dangerous in U.S. - Houston Chronicle

Still surprising the land is so cheap, considering the location.