April rental market report: Highest rents on record plus units leased soar 24%

Posted on May 2, 2013 Written by Leave a Comment
running with the seagulls

Every year since 2007, the number of properties leased during the month of April had been 8-10% lower than the corresponding March figure. This year, the Houston rental market shattered this well-established trend. According to statistics obtained directly from the MLS for investment grade rental properties, a total of 507 single family homes were leased during the month of April. That figure represents a 24% increase year over year and an 8% jump over last month. The solid jump in units leased was certainly welcome news. But was this increase as a result of higher demand or lower prices? The numbers answered that question emphatically in April. Average rents climbed to $1578 per month - a 6% increase year of year and a 3% jump over March 2013.  Not only that, but the April average … Continue reading

Filed Under: Market Stats Tagged:

In the path of growth: Exxon’s mammoth campus under construction in North Houston

Posted on April 25, 2013 Written by Leave a Comment
Exxon

During the acquisition phase of your Blueprint real estate investing strategy, the temptation is to focus exclusively on well established neighborhoods. But as a neighborhood becomes more and more established, home prices rise and returns drop. So how can you get better returns without sacrificing quality? You buy properties in the path of growth. That well established neighborhood of today was at one point not so well established. Needless to say, investors that purchased properties in the neighborhood during that period paid considerably less money for them that you'd have to pay today. It makes perfect sense: At that time, the investment was riskier since no one could know for sure how the neighborhood would turn out. Therefore it was only right that the return should be higher as … Continue reading

Filed Under: Economy, Real Estate Investing Tagged:

Houston housing market: Inventories Shrink Further Pushing Sales and Prices Up in March

Posted on April 18, 2013 Written by Leave a Comment
Metropolis

The housing market in Houston strengthened further and posted higher sales and prices during the month of March fueled by an ever shrinking inventory of properties. As usual, I want to give you the "espresso" version of the report with the numbers you need to know: Total sales came in at 7006 properties (19% increase over March 2012) Active listings on the market were 32,704 (down 22%) Pending sales  were 4433 (up 6%) Average price was 236,195 (up 4%) Median price was 172,000 (up 6%) Inventory shrank to 3.5 months (down 38% over last year, and down from February's 3.6 months, too) I also want to share with you a couple of interesting statistics. When the sales numbers are broken into price brackets, the only bracket that experienced decline in sales were properties … Continue reading

Filed Under: Market Stats

Fine tuning your asset protection strategy for real estate investing

Posted on April 11, 2013 Written by 2 Comments
What Have I Done?

A few weeks back I wrote about how long term real estate investors can protect themselves from liability exposure. That article argued that a wise investor that builds a great long term real estate portfolio must also build a strong impenetrable "wall" around it for protection. A properly constructed asset protection strategy protects you in two primary ways. First, it protects you and your other assets from liability that might arise from your ownership of investment real estate. In that sense, it creates separation between your "personal" assets (primary residence, cash, stocks etc) and your real estate portfolio. Second, it protects your real estate assets from liability that might arise from your ownership of other real estate assets. In other words, it should prevent "liability … Continue reading

Filed Under: Asset Protection

The more things change

Posted on April 9, 2013 Written by 4 Comments
20_best_markets

File this under "you can't make this up". RealtyTrac has developed a list of the "20 best markets to purchase single family rentals" based on cap rates and cashflows. According to the study, these markets offer great opportunities for "conservative" individual investors. And let me tell you, RealtyTrac didn't disappoint. The list contains some of the perennial favorites of conservative investors like Detroit (MI), Phoenix (AZ), Las Vegas (NV). Not to mention a half dozen markets in Florida and several rust belt cities like Dayton and Toledo (OH). Most importantly, RealtyTrac managed to say all of that while at the same time, keeping a straight face.  Oh how quickly we forget. Next thing you know, we will be bringing back other "conservative" favorites like the 80/20 … Continue reading

Filed Under: Market Stats

The number one rule of investing

Posted on April 9, 2013 Written by 2 Comments
1

As the Sage of Omaha eloquently put it, the number one rule of investing is Don't Lose Money. At first sight it is a blatantly obvious piece of advice although I suspect most investors don't realize just how sophisticated it really is. The Case … Continue reading

Filed Under: Case Studies, Mindset Tagged:

Rental market report for March – Fewer units leased at higher prices (+6.29%)

Posted on April 1, 2013 Written by 2 Comments
Spring?

Last month I launched the Houston Investment Grade Rentals Chart - an effort to bring you more up to date and relevant information on the rental market for investment grade rentals. The March data for the market's performance has been compiled and … Continue reading

Filed Under: Market Stats

Straight talk on investing in small multi family properties

Posted on March 29, 2013 Written by 4 Comments
My cousin Carrie's place

"I know you are against investing in two to four unit properties - but that's the direction I'm leaning in at the moment" - Theresa said somewhat tentatively. The overwhelming majority of case studies or portfolio scenarios I've written about … Continue reading

Filed Under: Real Estate Investing Tagged:

A two word mantra for Blueprint real estate investing

Posted on March 27, 2013 Written by Leave a Comment
Practice Yoga, Be Healthy! {EXPLORED}

Lately I have been thinking at length about what is at the  core of our Blueprint real estate investing strategy. There are many moving parts and elements to consider when putting together such a strategy: Location of properties, assets specs, … Continue reading

Filed Under: Mindset

Houston real estate market roars into spring + Introducing HIGR chart

Posted on March 25, 2013 Written by 2 Comments
"dandelion" - "Löwenzahn"

It's as if someone flipped a switch on January 1, 2013. The market has not been the same ever since. During the previous two years (2011 and 2012) the  Houston real estate market reversed course and started its steady climb of recovery. Sales … Continue reading

Filed Under: Market Stats
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