Thousands of people are flocking to Houston, Texas from all over the United States. Like Florida, Houston has become a hot destination for permanent relocation among people who are departing from the coastal states like California and New York.
If you’re a property investor who’s considering a move to Houston, you’re in good company with other like-minded individuals. No matter how far you’re thinking of traveling, here are six tips that could make your transition more smooth.
Hire a property management company
Regardless of how many or few investment properties you might end up acquiring in Houston, it’s a good idea to hire a property management company. A property manager will take care of your Houston tenants by managing all the repairs, maintenance, and communications.
With an experienced property management team working for you, you’ll be freed up to search for further properties to add to your portfolio.
If you plan to hold onto your out-of-state properties, you’ll need a property manager to handle your out-of-state business. You might have been able to manage your holdings by yourself, but once you’re no longer local, you’d be wise to retain a local team to manage your affairs.
Get ready to trade state income tax for higher sales taxes
If you’re moving from a state that has no income tax, you’ll be happy to know that the Texas state Constitution prohibits personal income taxes. However, Texas has plenty of other taxes, including high sales and use taxes. You can expect to pay as much as 8.25% in some regions.
If you’re coming from the state of Washington, where the sales tax is 9.23%, you’ll feel like you’re getting a discount at the store. But if you relocate from a low tax-rate state such as Wyoming, Alaska, or Hawaii, you’re more likely to experience sticker shock.
Invest in commercial properties
Investing in commercial properties can be extremely profitable. Even though the economy has been somewhat slow the past year because of the coronavirus pandemic, it is likely to turn around at some point.
When it does, local businesses will need buildings to rent for their storefronts and offices.
If you’re hesitant to invest in commercial property because you don’t know what to expect, however, read this guide to investing in commercial property, and it will give some of the basics of what’s involved.
For example, there are five different types of commercial property you can buy: industrial, special purpose, multi-family, retail, and office. Each has its pros and cons, of course. For instance, some types of office buildings have high vacancy rates, while some special purpose buildings (like self-storage facilities) are almost never vacant.
Out of all the available options, investing in self-storage properties is one of the best commercial investments you can make. The overhead is low, staff are easy to obtain, and ongoing maintenance needs are also minimal
Though the market does fluctuate slightly, self-storage services tend to be in high demand whenever the economy slows down.
Invest in recession-resistant properties
Naturally, there are no guarantees, but some types of properties tend to be fairly recession-resistant. For example, medical complexes, office buildings used for essential services, and large chain grocery stores are typically impervious to dips in the economy.
There are always exceptions, of course. For example, large chain grocery stores sometimes close some of their lesser-performing outlets. But no one can avoid every possible investment risk. If you’re going to invest in property during the COVID-19 pandemic, some risks will be inherent and unavoidable.
Invest in luxury homes
If you’re in the market for luxury homes, keep an eye open for celebrity homes that go on sale. Despite the pandemic, celebrity homes have been selling like crazy across the U.S. and they don’t stay on the market long.
For instance, Chris Paul of the Phoenix Suns just sold his $8 million mansions.
Invest in an area near where you live
When your investment properties are nearby, it’s a lot easier to keep your eye on them. Even when you have an excellent and reputable property manager, you might want to pop over periodically to see how your properties are doing.
Whether you buy residential or commercial property, it’s always a good idea to drive around the neighborhood and see what’s going on. Occasionally, a neighborhood may decline or fall into chaos within a surprisingly short time.
For example, Seattle residents probably never imagined their neighborhood would be taken over and turned into an occupied protest site nicknamed “The Chop.”
Keep growing your portfolio in Houston
Houston is a great place to live and a good source for profitable investments in both residential and commercial properties. Consider expanding your portfolio in this city.
Given the right deals and determination, you just might become Houston’s next real estate baron.
If you are a property investor and are looking for a property investment strategy that will increase your net worth then read this article. In this article, we will discuss tips for property investors moving to Houston, Texas. We will discuss when is the best time to invest in investment properties in Houston. After reading this article, you should be able to make sound investment decisions regarding your investments.
First of all, we will discuss when is the best time to invest in Houston, Texas? This question will vary depending on what type of investor you’re. Some investors might prefer to invest in residential properties. These investors may be looking for a home within walking distance to their place of business. Others may be looking to invest in property in a more dangerous area. This type of investor needs to find other ways to offset the risk of investing in a particular area.
Investors who are looking to invest in property need to find other ways of reducing risks. One way that investors can do so is by buying multiple unit types of properties. We need to find a brokerage that specializes in commercial property. A Houston real estate broker who specializes in commercial investments will have many listings. It is important that when looking for a broker to work with you to check his or her background and ask for a portfolio that showcases not only their successful residential deals but also multiple-unit investments.
Another way to gain an edge when investing in a Houston neighborhood is to work with a real estate agent who focuses on rental property. A Houston real estate broker who has experience working with renters is an excellent choice to help you achieve your investment goals. We have all heard stories about bad investments and how investing in a rental property can end up losing you your investment money. The best way to avoid losing money when investing in rentals is to work with an experienced landlord.
There are a few things property investors should keep in mind to ensure they succeed in Houston neighborhoods. The first is to find the right property investment strategy for you. While Houston does offer some of the most diverse neighborhoods in the nation it also has some of the most expensive properties. There are many options available if you want to purchase an investment property but can’t afford the asking price. Investors can often afford commercial properties and apartment complexes.
Investors also need to work with a brokerage service that will pair them with a single lender if possible. Because it reduces the risk of acquiring investment property, many investors prefer to buy it from one lender. However, the single lender may also offer a more aggressive lending program. You may need to work with multiple Houston brokers to get the right financing package.
There are also mortgage companies that don’t lend directly to real-estate developers. In order to get a Houston rental property investor loan you may need to use a broker or loan officer who can show you a portfolio of investment properties. When working with a brokerage service to obtain financing for your investment properties, it is important to remember to shop around as much as possible. Many mortgage companies will provide their own quotes but always use multiple lenders’ quotes to ensure you receive the best deal. Once you receive the quotes it is in your best interest to review them closely to make sure the mortgage company will be able to deliver the loan that you need to achieve your goals.
Overall, finding the best deals when it comes to investment properties is quite simple. Finding the right type investment property is the most difficult part of the process. There are many great investment properties available for investors. Your chances of making money investing in Houston properties will increase if you take the time to research and develop an investment strategy. Remember that timing is everything when it comes to a long-term rental property strategy.