Where to Invest? What to Buy?
A question I am often asked from investors new to our market is, Where would you recommend investing? If only there were an easy answer to that question. The answer is an open ended one: It all depends... Most people I deal with are investing in residential property, so we will tackle this area and leave the commercial properties out of it.
To answer that question, you need to know what your investment goals are, your risk level, and your financial status.
1. Investment Goal: Are you interested in properties that produce a positive cash flow or are you ok with breaking even to paying a few hundred dollars a month to cover the mortgage? The majority of the properties that cash flow are older homes in established neighborhoods. They can be bought for less but will probably need some repairs or updates. New homes tend to produce little to negative cash flow (with traditional interest only or 30 year fixed mortgages). The plus side is that they are new and should not require repairs.
Do you want to stay in a rental price range most people can afford? Or are you targeting more affluent tenants or corporate leases? The price point that has the most amount of prospective tenants is the under $1000 a month rent.
2. Risk Level: How much risk are you willing to take? Are you interested in good neighborhood, with good schools and working professionals? Do you want a neighborhood that is in transition? Or do you prefer low income or assisted housing?
3. Financial Status: How much of your own money are you willing to invest? Do you have a good amount of cash and great credit? Are you low on cash but have good credit? Or are you cashless with terrible credit? No matter what you answered, you can own real estate, it will take a lot more work on your part if your funds are low and your credit is bad.
Where to Invest and What to Buy? If your interest is good schools, good neighborhoods and suburban, family orientated areas, here are few:
North of town: The Woodlands, Spring, Conroe
North East: Kingwood, Attascocita and Humble
North West: Tomball, Cypress
West: Katy
South West: Sugarland, Missouri City
South: Pearland
South East: Friendswood
East: Baytown
Closer to down town, transition neighborhoods:
The Heights
Midtown
The Med Center
University of Houston
Myerland
Bellaire
Houston is a large city. There are many more places than the ones I have listed. My favorite? The ones that make money :).
To answer that question, you need to know what your investment goals are, your risk level, and your financial status.
1. Investment Goal: Are you interested in properties that produce a positive cash flow or are you ok with breaking even to paying a few hundred dollars a month to cover the mortgage? The majority of the properties that cash flow are older homes in established neighborhoods. They can be bought for less but will probably need some repairs or updates. New homes tend to produce little to negative cash flow (with traditional interest only or 30 year fixed mortgages). The plus side is that they are new and should not require repairs.
Do you want to stay in a rental price range most people can afford? Or are you targeting more affluent tenants or corporate leases? The price point that has the most amount of prospective tenants is the under $1000 a month rent.
2. Risk Level: How much risk are you willing to take? Are you interested in good neighborhood, with good schools and working professionals? Do you want a neighborhood that is in transition? Or do you prefer low income or assisted housing?
3. Financial Status: How much of your own money are you willing to invest? Do you have a good amount of cash and great credit? Are you low on cash but have good credit? Or are you cashless with terrible credit? No matter what you answered, you can own real estate, it will take a lot more work on your part if your funds are low and your credit is bad.
Where to Invest and What to Buy? If your interest is good schools, good neighborhoods and suburban, family orientated areas, here are few:
North of town: The Woodlands, Spring, Conroe
North East: Kingwood, Attascocita and Humble
North West: Tomball, Cypress
West: Katy
South West: Sugarland, Missouri City
South: Pearland
South East: Friendswood
East: Baytown
Closer to down town, transition neighborhoods:
The Heights
Midtown
The Med Center
University of Houston
Myerland
Bellaire
Houston is a large city. There are many more places than the ones I have listed. My favorite? The ones that make money :).
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