77449 good for investment properties (Houston, Bear Creek: days on market, short sales, real estate)

[mkmr]

is subdivisions like Lakeville, Bear Creek good for rental homes?
I sometimes see listing under 80k, and can be rent out for around $1000 a month.
Any one has rental properties in this area?

Thanks

[City Love]

Originally Posted by mkmr

is subdivisions like Lakeville, Bear Creek good for rental homes?
I sometimes see listing under 80k, and can be rent out for around $1000 a month.
Any one has rental properties in this area?

Thanks

There are other areas of town where you can get homes at 50-60k that will rent for 900-1100 a month. Much bigger spread there.

[desertsun41]

Originally Posted by City Love

There are other areas of town where you can get homes at 50-60k that will rent for 900-1100 a month. Much bigger spread there.

I"m sure you are correct. But you need 6 body guards all packing machine guns just to go from your front door to your mailbox.

[cheryjohns]

Originally Posted by desertsun41

I"m sure you are correct. But you need 6 body guards all packing machine guns just to go from your front door to your mailbox.

That's true! What you need to look for is a subdivision where you can:

Find one where cost, plus repairs, equals 75% or less of market value after repairs
Days on market - rentals - less than 30 days - the less, the better
Rental rates will give you a decent spread
Future appreciation very likely to be strong

Picking up one for $80K, probably needing a minimum of $6K, for a rental rate of $1000 - not a good investment. Repeat - not a good investment.

Here's one that just closed in the area - my investor got it for $60K - it will need $8K in repairs - rental rate a strong $1100 for that size in that subdivision, with a normal days on market less than 2 weeks. Rent can be up to $1250 but might be longer days on market. That's a good deal. Plus, if they sell in two years, the neighborhood will have appreciated.

There are neighborhoods to stay away from - Lakeville is one of them. Tealbrook another.

[Texas User]

Originally Posted by desertsun41

I"m sure you are correct. But you need 6 body guards all packing machine guns just to go from your front door to your mailbox.

Don't forget bullet-proof vests.

[desertsun41]

Originally Posted by cheryjohns

1. Find one where cost, plus repairs, equals 75% or less of market value after repairs
2. Days on market - rentals - less than 30 days - the less, the better
3. Rental rates will give you a decent spread

*****4. Future appreciation very likely to be strong

.

Future appreciation rates increase?!?!?!?!?!?!

Oh well, 3 out of 4 ain't bad. Honesly John, I hope I am wrong but I really feel I am right that we will not see any real estate appreciation in a very very very long time.

[rajuncajun]

Originally Posted by cheryjohns

That's true! What you need to look for is a subdivision where you can:

Find one where cost, plus repairs, equals 75% or less of market value after repairs
Days on market - rentals - less than 30 days - the less, the better
Rental rates will give you a decent spread
Future appreciation very likely to be strong

Picking up one for $80K, probably needing a minimum of $6K, for a rental rate of $1000 - not a good investment. Repeat - not a good investment.

Here's one that just closed in the area - my investor got it for $60K - it will need $8K in repairs - rental rate a strong $1100 for that size in that subdivision, with a normal days on market less than 2 weeks. Rent can be up to $1250 but might be longer days on market. That's a good deal. Plus, if they sell in two years, the neighborhood will have appreciated.

There are neighborhoods to stay away from - Lakeville is one of them. Tealbrook another.

I've been looking to buy some investment properties for cash (have a budget of $150K). Been looking in the 77004 zip. Any thoughts on that area? Any areas to recommend? Also looking for a good realtor that has access to REO's or short sales. Primarily looking at doubles.

[cheryjohns]

Originally Posted by desertsun41

Future appreciation rates increase?!?!?!?!?!?!

Oh well, 3 out of 4 ain't bad. Honesly John, I hope I am wrong but I really feel I am right that we will not see any real estate appreciation in a very very very long time.

You are wrong - there are neighborhoods in the Greater Houston Metro Area that have depreciated greatly - others depreciated a little - others stagnant - others creeping up a little - and finally, others appreciating in a healthy manner - within the last year. Not all neighborhoods are created equal here, by a long shot.

[cheryjohns]

Originally Posted by rajuncajun

I've been looking to buy some investment properties for cash (have a budget of $150K). Been looking in the 77004 zip. Any thoughts on that area? Any areas to recommend? Also looking for a good realtor that has access to REO's or short sales. Primarily looking at doubles.

Are you talking about flipping - or buy and hold (while renting)? All Realtors have access to REOs and short sales. The key is finding one that knows investment property.

[mtgmike]

Id avoid lakeville. Buddy of mine flipped a few in there to people as investment properties. He wouldnt hold them himself because we all agreed there wasnt much chance for appreciation. I thought about buying one from him. Tried to pre-lease it. As me and the prospective renter pulled up to the house, a young guy drove up and screamed to a guy sitting on a porch asking if he had any weed right now. Renter looked at me and just said, "Dude, really?".

If that development was in another town, it might work. Great idea, wrong demographic.

That immediate area has some deals, but stay away from lakeville, IMO.