Our third ward 16 unit is closing on October 2nd. I wanted to delay the newsletter until the deal closed, but I’m traveling next week and focused on getting funding together. I’ll provide some more details next month. We had a delay as the seller has not fixed the roof. Instead of waiting we are getting a concession for the cost. I’m very up on Third Ward and think it’s one of the next areas of town to appreciate over the next three years. I also have some big news next month so stay tuned!
Our Rice Village property is wrapping up fire blocking this week and getting our last green tag. Unfortunately this issue came up after our electrical. You can’t argue with the city and just need to get the work done. There have been some lessons learned on getting through this faster next time. You can always follow our week to week progress on our Facebook page or if you’re curious reach out to me and stop by!
We have expanded our property management team. We made a full time hire in the last month to handle our ever growing portfolio of clients. We have right now $0 marketing overhead, but have added almost 50 units this year. All from word of mouth recommendations and proving ourselves with test properties. I’m very excited about what we’re doing and believe we will revolutionize this space. While competitors spend up to 6 figures a month on marketing we’re growing with none. I expect to increase our marketing minimally over the next 6 months. I want our clients to feel that WoodBaker provides more value for the money than any property management company in the country. So far I feel we are achieving that. If we can help you with your property management needs don’t hesitate to email me at firstname.lastname@example.org.
GQ Is Big On Houston
Leaving this article up again. If you didn’t read it last month and are interested in Houston it’s a must read!
We’ve been hearing the buzz for a few years now: Houston may, sneakily, be America’s best food city. But when we sent GQ food critic Brett Martin to dive into the scene, we realized that was selling the city way short.
I’ve been reading GQ off and on since 2004. The magazine has a small handful of long form pieces in each issue. I was surprised to find that Houston was featured this month. The article is a fantastic read for folks who haven’t visited giving a great overview of what is bringing people into the Bayou City. Great jobs partnered with affordable housing is creating a thriving art and music scene. And if you are from the Bay Area you are probably wondering how it compares to Austin. Well from the article:
Austin, he said, was a white monoculture of hipsters, yuppies, and techies. (Odam was telling me this story in a Japanese-fusion spot in East Austin, which made it easy to visualize said culture.) In Houston, the kid said, things were happening.
Give the article a read as it’s fantastic and will quickly catch you up with what is going on in the city. By the end of the article I was extremely excited for the next 5 years.
I Need a $4-10M Apartment Complex
Woodbaker and our investors are looking for an apartment complex between $4-10M in the Houston area. If you have any leads please reach out to me at email@example.com.
In mid-September the MLS released their monthly report. Here is a look at the table for August of this year:
Keep in mind these numbers were heavily skewed by Hurricane Harvey which dramatically impacted the housing market in Houston for several months. Looking back at 2016 where there was a 4.3% increase in homes sold in last two years. Home prices increased 3%
Using just Pre-Harvey August data here is how pricing changes were impacted
- $1 – $99,999: decreased 2.4 percent
- $100,000 – $149,999: decreased 12.4 percent
- $150,000 – $249,999: increased 7.3 percent
- $250,000 – $499,999: increased 13.7 percent
- $500,000 – $749,999: increased 16.7 percent
- $750,000 and above: increased 15.4 percent
There was mixed consumer interest on the property lease front in August, with single-family up and townhome/condominium down, regardless of how HAR analyzed that year-over-year data. Not adjusted to account for the “Harvey effect,” single-family home rentals climbed 13.9 percent while leases of townhomes and condominiums were down 1.2 percent. For the period of August 1 – 24, not affected by Harvey, single-family rentals were up 7.6 percent while townhome/condominium rentals fell 8.3 percent.
The average rent for single-family homes rose 3.4 percent to $1,926 and the average rent for townhomes and condominiums increased 5.5 percent to $1,639.
I linked some important articles below. I read 20-30 articles and cherry pick the ones that I find most valuable. Here are a few articles worth reading:
Houston No 6 Nationally for Real Estate Investing
With Houston adding 80k jobs over the past year it was recently ranked 6 in the top 10 list of real estate investment markets. As the energy sector continues to rebound I wouldn’t be surprised to see Houston jump a couple more spots come 2019.
Another Fantastic Washington Project
HEB is the cornerstone grocery store in the Houston area. It focuses on large sq footage to move a wide variety of goods at affordable prices. With real estate at a premium it’s been harder to find real estate for such a large store. A new 96,000 sq ft HEB will go in at Washington and Heights Blvd just down the street from the Sawyer Yards project mentioned below. The total mixed use area will be 742,000 sq ft mixed use development containing 232 unit multifamily units and 36,00 sq ft of office space.
Sawyer Yards Expansion in First Ward
Washington vs Midtown vs more recently East Downtown vie for the top spot for young professionals looking for nightlife. Julep near this area developed a nice niche for a little quieter going out spot down the road on Washington while most bars are more west down the street. Sawyer Yards popped up nearby and has seen some success. This project looks to expand this area and add more restaurants and bars. Two named are a brewery and beer house. Look for property in this area to increase in value as young professionals look to live nearby.
Major Montrose Project Delayed Indefinitely
A year and a half ago I was looking for property in the Montrose area. The reason being a new development known as The Fairview District was planned. It appears that project in planning since 2015 has been put on hold until more funding can be obtained. Sometimes the projects never pick up again. Worth monitoring any changes to the proposed plan as this project if completed will spike prices in the area.
Houston Values Have Nearly Doubled Since 2012
I was surprised to read this stat. Houston has usually been a slowly appreciating market. The articles cites an increase in population of 11.5% vs the national average of 3.7% and employment growth of 9% vs the national average of 7.7% as contributing factors.
Have A Deal?
WoodBaker creates win/win situations for the sellers of properties. We buy, rehab, and rent properties for investors all day every day. If you need advice, help, or an exit strategy we can help you. Feel free to email me with any deals at firstname.lastname@example.org.
Need a Deal?
WoodBaker is one of the premiere real estate buyers in the Houston area. We get 3-6 deals per month. If you would like to invest as a cash buyer or are looking for rent to own opportunities let us know. If you are on this list you’ll get the first opportunity to buy any deals we find. Email me at email@example.com.