The Houston townhouse would make sense, based on the numbers you state. Have you actually seen something like that recently? Anyone here live in Houston?
As a rule of thumb, anytime monthly rents fetch over 1% of sales price, it is a workable R.E. investment. Things to verify, as you know, would be vacancy rates, expenses such as H.O. fees etc.
Sometimes, what seems a bargain isn't, when you check it out. I flew to Houston to check out rental apts that were selling for less than we were paying for the land in Florida. $3,300 per unit. I was told they rented for $500 a month. When I got there, I found, block after block of partly vandalised apt buildings, 60-80% vacant. Added costs, not mentioned included, security, chain linked fencing, vandalism etc. This was back in the early 80's. If one had the cash and the fortitude perhaps it was a good investment although I heard the city condemned and tore down many of them.
Haven't been in Houston for years so things may be good there now. Let me know if you find out more. |
