Real Estate Investing Houston
Investing in real estate is one of the easiest, best, and most profitable ways to create passive income streams large enough to make millions and retire early. In fact, with the help of Lifestyles Unlimited, you could retire in the next 3-5 years, like many of our students who have become multimillionaires putting into action what we teach. We have students winning Investor of the Year awards all over the US, but we started in Houston over 30 years ago and can offer extra support to new and experienced real estate investors in Houston. This includes classes, events, and networking opportunities including our annual expo. If youre looking to make a rental property investment in Houston, were your best chance of success. Read More
Summing Up: Investing In Houston Real Estate
Weâve now successfully reached the end of the topic of investing in Houston real estate in 2023. But in order to successfully conclude it, we should go over the main points once again.
As a state, Texas is known for its steady economy and favorable life standards. Houston, as one of its most famous cities, is considered a hotspot for investors contemplating new investment opportunities.
Itâs safe to say that Houston will remain a lucrative location for real estate investments. Here, there are both traditional and Airbnb investment properties available that can help you, as an investor, generate a steady income and realize high returns.
When choosing the ideal real estate property that will fit your plans and budget, you will need to consider factors like the neighborhood, the propertyâs condition, financial metrics, property management, and current demand for real estate.
Houston is, indeed, an advantageous location for real estate investorsâand Mashvisor can help you pin down the property that matches your business and personal preferences. Our Property Finder tool is designed to assist you and other real estate investors in locating your ideal investment property across the entire US housing market.
Other Texas Real Estate Investment Markets
Apart from Houston, you can also invest in the housing market of Dallas, TX. If you have decided to invest in Dallas, you can either buy a fixer-upper or you may want to buy a Dallas investment property. This market offers a wide range of turnkey investment properties you just have to find your tenants to rent out the property.
The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked 4th in Trulias hottest real estate markets to watch in 2018. El Pasos strong job growth, affordability, low vacancy rates, and high population of young households were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.
The Central, Cielo Vista, and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.
This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.
REFERENCES:
https://www.har.com/content/mls
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Real Estate Education & Mentoring Group Houston
We grow up believing that we can only become wealthy by studying hard, working hard, and saving. Unfortunately, we sometimes have misguided beliefs that may be demonstrably false at worst. In many industries, work life has taken over, and it becomes increasingly difficult to make time for those we love and the activities that make life worth living. The one avenue that is a key to exiting this career blind alley is to make an intelligent investment.
Its the reason our real estate mentor group has become an important resource for people looking for financial freedom. Individuals from many walks of life would prefer to find a way to retire early or just have the capital they need to live the life they should be living, even if they’re not ready to give up work. And while some have the misconception that the housing market is too difficult to navigate to make a decent return, through our real estate mentoring group, many are starting to see that this is just not the case.
Consider The Benefits Of Professional Property Management Services
Do you know how much time and effort self-managing a rental property can take? Sometimes beginning investors arent aware of what they are getting into. The daily responsibilities can become too much if you have more than a few rental units.
Your Houston rental property needs to be habitable at all times. That means taking care of regular upkeep and repair needs. You also have to be ready to answer emergency requests and neighbor complaints.
Self-managing requires around-the-clock readiness to solve problems. If thats not what youd prefer, consider the services of a reputable property management company. The best companies address all of your needs and interests while providing a maximum quality of life for your tenants.
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Success Theme #: Avoid 9 Kisses Of Death For Resale
If you’re looking to make a good Houston real estate purchase, step #1 – avoid making these 9 mistakes.
From studying 512,056 Houston home sales over two decades, we identified nine home characteristics that have a systematic and statistically significant NEGATIVE impact on a home’s resale value.
We dubbed these “the Nine Kisses Of Death for resale” – a.k.a what you should avoid to make a good Houston real estate investment.
Properties with any of these factors on average:
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Re-sold for lower values than their peers.
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Suffered from a smaller buyer pool .
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Stayed on the market longer.
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Required a larger discount off list price to sell.
Click here to read details on the 9 Kisses of Death of Resale – How to Avoid Buying a Bad House.
Best Neighborhoods In Houston Texas For Airbnb Investment
Check out the folowing Houston neighborhoods for investing in Airbnb:
1. Midtown, Houston
- Airbnb Occupancy Rate: 44%
- Walk Score: 83
The fact that there are only two potential Houston neighborhoods for Airbnb investment suggests that the cityâs short-term rental market might be slowing down. By the looks of the statistics, itâs true. The question is, What is the reason for the apparent slowdown?
For the most part, itâs the competition. The rapid growth in the Texas real estate market means itâs become flooded with investment opportunities, with Airbnb getting the short end of the stick. Websites are crowded with hundreds of Airbnb listings, making it hard for investors to set a price that will allow them to make a profit.
So, if youâre looking to invest in Airbnb in Houston neighborhoods, the two neighborhoods with the most potential in Houston are Midtown and Washington Avenue Coalition.
Start your search for profitable Airbnb investment properties for sale in Houston, Texas by clicking here.
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Best Neighborhoods In Houston Texas For Traditional And Airbnb Rental Investment
Investing in real estate in Houston, Texas requires serious research skills. Considering that it is one of the largest real estate markets in the US, we took the time to compile the following list of the five best neighborhoods for traditionalâand a couple for Airbnbâinvestments.
The neighborhoods below are ranked from the highest to the lowest cash on cash return, according to Mashvisorâs August location report.
Boost Your Rental Propertys Appeal
Once you have closed your purchase, itll be time to make the property as attractive to prospective tenants as possible. Here are some of the steps that you can take:
- A simple paint job could make a huge difference. Apply a fresh coat of paint to your new rental property to increase its appeal.
- Purchase new hardware. Updating ordinary hardware components like light fixtures, house numbers, and mailboxes can change the look and feel of your property.
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Strong Economy And Job Growth
When the economy and job growth are strong, the real estate market does well. So weak job growth means a lousy housing market, and vice versa, right? The Houston region is one of the most important industrial bases in the world and ranks No. 2 in manufacturing GDP in the U.S. It has the largest medical complex in the world, the Texas Medical Center, which provides clinical health care, research, and education at its 58 institutions.
Houston has more than 1,760 life sciences and biotechnology companies, cutting-edge hospitals, health facilities, and research institutions. Houston is the U.S. energy headquarters and a world center for virtually every segment of the oil and gas industry from exploration and production to marketing and technology.
Houston is home to 6,400 manufacturers who employ more than 240,000 skilled workers and produce $80 billion in goods annually. You can visit Houston.org for more info information on Houston’s top industries. Big companies want to have their centers set up in Houston. Recently Amazon chose Houston to call home. This decision has the potential to bring an entirely new industry to Space City.
All these factors make a good reason to invest in the Houston housing market in 2022. Demand for all types of real estate increases with the number of local jobs. Additions to the local labor force tend to drive rents and prices upon rental properties in the vicinity and results in local construction of homes and apartments.
Clear Lake Houston Tx
Clear Lake City is a master-planned community located in southeast Harris County, Texas, within the Bay Area of Greater Houston. It is the second-largest master-planned community in Houston behind Kingwood. Clear Lake enjoys all the amenities youd expect from a larger city, but is actually quite small and inviting. And the large lake is a definite selling point.
The population is quite high, topping 83,000, and home prices in this Houston area are a little above the national average. The open spaces here are worth noting because they are attractive for buyers and they show potential for development, so a little research could unveil a good investment opportunity in Clear Lake.
According to Realtor.com, the median list price of homes in Clear Lake was $299K in March 2022, trending up 10.8% year-over-year. The median listing price per square foot was $147. Clear Lake is a seller’s market, which means that there are more people looking to buy than there are homes available.
On average, homes in Clear Lake sell after 39 days on the market. The trend for median days on market in Clear Lake has gone up since last month, and slightly down since last year. Clear Lake hosts 24 public schools rated good and higher by GreatSchools. You can find dozens of grocery stores and hundreds of cafes and restaurants in Clear Lake.
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Houstons Strong And Growing Economy
Home to 6.7 million residents and 20 of the nations Fortune 500 companies, Houston ranks as the fourth largest U.S. Metro Economy, which creates a wide array of work opportunities for residents. The citys strong economic infrastructure continues to enable strong growth in energy, health care, aerospace, and information technology industries, while its geographic location nurtures both domestic and international partnerships with economic powerhouses around the globe.
According to the the Greater Houston Partnership, Houstons employment is higher now than ever before, making it one of the top cities for job creation. Home to the the world-renowned Texas Medical Center and one of the nations largest ports, this city is attracting more people who will be looking for homes to buy or rent.
The Museum District Houston Tx
The Museum District is due west of the Medical Center, putting residents in easy reach of both major medical employers and downtown Houston jobs. You do have to earn two to three times as much to afford to live here. This area is attractive to both young adults and empty nesters who want to live near the 19 museums in the area. Others appreciate the proximity to Rice University, whether they work there or attend the school.
This makes the Museum District one of the best neighborhoods in Houston for buying investment properties. Rental rates are falling in most inner loop neighborhoods because of the high supply relative to demand. The rental rates would look even worse if it were not for the influx of new, high-rent properties coming onto the market, pulling the average up. Rents here are stable and rival those of the Medical Center district making it one of the best Houston neighborhoods to invest in rental properties.
The Museum District Real Estate Market Trends
Current market indicators show that the Museum District is a buyer’s real estate market, which means that the supply of homes is greater than the demand for homes. If youre looking to invest in real estate, the Museum District is another ideal market for it. Buyers will have more negotiating power when making a purchase.
median rent of $1,200
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Houston Named Best Market For Real Estate Investment Prospects
With the housing sector on the mend, there are key real estate markets in the U.S. that investors are seeing as the best for investment, including in Texas. According to a report by Pricewaterhouse Coopers, the Lone Star state had two of the best cities for real estate prospects, Houston and Austin. Houston was ranked No. 1 on the list for investors with Austin close behind with the No. 2 spot. The rise in housing sales in Texas could be attributed to the increase in employment prospects in the state as well as growth stimulated by crucial sectors like the oil and gas industry.
In the past several years, we reported that real estate market participants main fears revolved around the uncertainty with the economy, said Mitch Roschelle, partner and U.S. real estate advisory practice leader at PwC. Now, the trepidation in their eyes has more to do with the ability of the growing real estate markets to adapt to a series of mega trends impacting society and the global economy.
ULI Global Chief Executive Officer Patrick L. Phillips said investors are searching for investment opportunities that are away from core markets, which are cities typically found along the coasts of the U.S. He said the cities showcased in the list pose as strong competition against these coastal cities because of the employment rates and amenities offered by areas like Houston and Nashville, which was ranked No. 13.
Why Houston is becoming a hot market for investors
Education & Quality Of Life
Quality of life and employment opportunities are the economic motivation leading household heads to migrate from one region to another. It is important to assess the quality of life by evaluating the economic, social, and environmental indicators related to the quality of life. Houston, Texas is considered among the top cities with a free business environment. According to Teleport.org’s city rankings, Houston is a good place to live with high ratings in startups, healthcare, and leisure & culture. Its economy and education also get a high-quality score.
Safety is still an issue. Safety.com named Houston, Texas, among the top five surprisingly dangerous big cities in America, noting that although more than half of Americans perceive Houston as being safe, Houstons rates of both assault and vehicle theft are actually quite high, while reported rape rates are considered middle of the line.
Its worth noting, however, that most of Houstons dangers are confined to the bad areas of Houston, so its important to know which Houston neighborhoods to avoid when considering investing in real estate. Some of the citys safest neighborhoods, include Far Northeast, Pasadena, and Midtown, as well as the suburbs of Sugar Land, Spring Valley Village, and Friendswood.
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Houston Real Estate Has Been A Great Investment
The #1 predictor of real estate prices is job growth. Houston has created more jobs than any other major US metro area over the last year.
Job growth is the number one factor that drives real estate prices. And in the past few years, Houston has consistently created more jobs than other major U.S. areas.
This past spring, Houston hit its lowest unemployment rate at 3.1%. Most of the job growth is coming from industries like Health Care, Construction, and Administrative Support and Waste Management industries.
A study from Houston MetroNext projects that Greater Houston’s population will surpass 10 million by the year 2040, up from roughly 7 million today.
Why Should I Invest In Houston Real Estate
Whether you know it as the home of the Astros, oil tycoons, or the Johnson Space Center, Houston is a city pushing the limits of possibility. Ranking 4th in U.S. city population with 2.3 million residents in the city proper and 6 million residing in the greater metropolitan area, Houston is alive not only with people, but with opportunity.
While the Houston real estate market can be highly competitive and tricky for investors, with a partnership with REI Nation, turnkey real estate investors can rest easy in the security of our expertise in property acquisition, rehabilitation, and management. With us, you can build a passive investment portfolio that includes some of the best investment markets for buy-and-hold investing, bar none.
The job and industry diversification weve seen in Houston largely stems from consistent population growth. The facts are clear: people want to live and work in Houston.
In the wake of economic recovery post-Great Recession, Houston saw a surge of 34,000 new residents in a single year. While population growth has slowed to a rate of 1.67 percent per year, this is still above the Texas average of 1.47 percent and leaps and bounds above the national average of 0.71 percent.
With a strong, diverse economic backbone it didnt take long for the city to bounce back. For the real estate investor, seeing a market that can bear the burden of both natural and economic disaster and stand strong on the other side is encouraging in a long-term investment.
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