What if you could buy a brand new home in a growing community, lease the home immediately for more than your monthly note, and have instant equity of 10% or more? Does that sound like a solid investment?
These opportunities abound in Suburban Houston, where home values and rental rates continue to climb. Nationwide homebuilders are suffering from slowing markets outside Texas, so they're offering incredible incentives to unload inventory homes. Typical inventory homes can be acquired for 10-15% below list price, yet homes built-to-suit are still selling for at or near list price. All of this in a market where commercial and residential development is as strong as ever.
Take this example:
In the popular Spring area of North Houston, a major homebuilder is offering homes starting in the $140k's with sizes ranging from 1450 sqft to 2500 sqft. The 2350 sqft plan has a list price of $165,900, and homebuyers who pick their lot and have the home built receive a 1% discount for a final price of $164,240. We recently assisted an investor in the purchase of this floor plan for $145,000. The home was leased in less than two weeks for $1,500/mo, which is more than $200/mo cash-flow after debt service, insurance, taxes, and HOA with a 10% down payment.
The investor now has a quality new home with a builder warranty, around $20,000 of equity, and a tenant paying the note. We manage the property for $50/mo.
Similar opportunities can be found all over Suburban Houston - as long as you know where to look! Our focus moves according to which major builders are nearing their fiscal year end or half-way point.
2008 promises to be a profitable year for residential investors, thanks to the combination of suffering home builders, rising foreclosures, and a healthy tenant pool. Take advantage!
Johnny J Schiro IV
Johnny Schiro is the founder and managing broker of The Icon Real Estate Group in Houston, Texas. The Icon Group is a real estate sales, financing, and management firm that assists local and non-local investors in the acquisition, leasing, and management of residential income property.
Broker | Icon Complete Real Estate
281.627.2486mobile
281.296.6226office
281.296.6240fax
26502 Oak Ridge Drive | Spring, Texas 77380
www.houstonicon.com
_________________
Comments(0)