What to Look For in a Potential Houston Investment Property
Renters Warehouse Blog
We know that your money is hard-earned and provides your family with a regular livelihood. When there is extra after monthly expenses and savings for retirement, you can choose different ways to invest your money. Some people buy vintage cars, vacation homes, or precious works of art. Or, they spend their money on annual trips to exotic destinations. Then, there are consumers who don't mind a bit more risk, and they will shop around for mutual funds, hedge funds, or money market accounts with the highest interest rate. Consumers must accept the ways that they invest their money, but there are no 100 percent guarantees of earning an acceptable amount of wealth from each one. If you study the long-term potential of real estate investments, they usually perform well over time despite the ups and downs of the housing market. The overall economic outlook for Texas is strong in July 2019, which proudly maintains a job growth rate of 2.5 percent. That's a full point higher than the national average of 1.5 percent.
STATE OF THE HOUSING MARKET
There are also strong economic indicators within the state's housing market. A July 2019 report from Texas A&M University's Real Estate Center found the number of new single family home permits rose for the fifth straight month in June after slumping back in 2018. Houstonhad the highest number of permits of any urban area in the state. When you're thinking about acquiring real estate properties in this metro, remember there is also a trend towards homes being listed in the higher price ranges. These affluent properties are beyond the reach of many potential renters as potential purchases, especially when a home's value exceeds $300,000. Some higher-priced properties aren't selling as fast as they once were, but the overall market remains strong.
WHY TRY THE BUY AND HOLD STRATEGY
We are the property management and real estate experts of Renters Warehouse. Because of our deep involvement in the real estate market, we know many consumers prefer a conservative approach to investment. You feel happier when you assume a low risk and can watch your wealth grow over time. Another term for this is a buy and hold strategy. When you buy a single family home, for example, and then you hold it, you're being cautious. You will reap the benefits of monthly rental income over many years. Any cash that you put down on the property will keep paying for itself.
WHAT TO LOOK FOR IN A RENTAL INVESTMENT
If you've conducted a walkthrough of a home that you might purchase, you're aware of the overwhelm that comes along with it. When seeing a property for the first time (or the second), it's common to notice problems you want to fix before assuming occupancy. If you are like many potential buyers, you wouldn't move in until those details were fully addressed. In general, potential renters feel the same way. They want to rent a home where the living environment is clean and safe, especially for kids and pets.
Here are some qualities that we encourage investors to look for in a prospective rental property:
- Affordable rent.
- Comfortable and roomy interior with proper ventilation.
- Safe walkways, adequate lighting, and mature landscaping.
- Recent updates to the home's roof, HVAC system, and plumbing.
- Regular pest control services.
- Fully functional wiring and newer appliances.
- Safe surfaces in common rooms, bedrooms, bathrooms, and showers.
- A fenced yard for recreation.
- A parking garage or carport.
- Nearby access to public transportation.
TRY INVESTING TODAY!
At Renters Warehouse, we maintain a unique inventory of fully leased single family homes. You can't find these properties listed anywhere on a multiple listing service (MLS) because they are off market! They are occupied by tenants who are satisfied with our property management firm's comprehensive services. If you purchase a rental property, you may continue to have the renters managed by our staff. For more information, contact us today.
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