Have you ever thought about investing in real estate? If so, I would like to talk to you about why it is a GREAT investment and why now is the right time to invest in real estate.
Please help me help you, fill this survey out in regards to real estate investing. Real Estate Investing Survey
My goal today is to show you a few examples of real estate investing in the Pearland and Friendswood Tx areas. I am only focusing on Pearland and Friendswood because it is a MUST to focus on an area that you want to invest in. If you want to look at other areas, let me know what area of Texas you want to invest in, and I will do my best to help you build your real estate portfolio.
In real estate investing, you have 2 different avenues for investment. You can buy and FLIP or you can buy and hold. In my opinion, most real estate investors should focus only on 1 discipline.
I am going to show 3 different real estate investment price ranges and I will focus on the buy and hold strategy that I believe is the SAFEST way to invest in real estate. It is one of the best ways to build wealth with real estate that I am aware of.
30,000 Feet Overview
First, we will look at the market from 30,000 feet to get an overview of how Brazoria and Galveston Counties are doing and why I feel now is a great time to get into the market.
As you can see on this chart, the Brazoria and Galveston Counties real estate market has been on a steady march upwards in value. In June 2020, the median prices for a single family home in the Pearland and Friendswood market was $270,000 and in June of 2022, the median price for a home was $357,745 or a $87,745 increase in equity or a 25% ROI, return on investment.
So, let’s look at the rental market of single family homes in both Brazoria and Galveston Counties. In June of 2020 the median rental price per square foot was $0.98. So a 1500 square foot home would rent for approximately $1,470 a month with only 420 homes rented in the month of June 2020. And in June of 2022, the Brazoria and Galveston County area had 345 single family homes rented for a median price per square foot of $1.14 or for that same 1500 square foot home, $1,710 or a $240 a month increase in rental income per month. That is a 14% increase in just 2 years.
$150,000 to $200,000 Homes
The median price of a single family home priced between $150K to $200K in June of 2020, The HOTTEST real estate market ever, was $180,000 and today that house has dropped in value to $175,680.
Looking at rentals in the same price range, I see the average square footage of houses in that price range was 1,513. And the median rental rate of $1.04 per square foot or $1,574 per month. That is a great ROI, return on investment.
Today, that same house has grown in size and income. The median size of a single family home today in that price range is 1544 square feet with a rental rate of $1.24 a square foot or $1,915. Again, a great investment to help you build wealth.
$200,000 to $400,000 Homes
The median price of a single family home priced between $200K to $400K in June of 2020, was $280,000 and today that house has grown in value to $310,000 or $30,000 in equity. The rental rate in June of 2020 was a median price per month of $1,998 and today that same house is renting for $2,375 a month. This is the sweet spot for rental investment properties in my opinion.
$400,000 to $750,000 Homes
This market segment could be the best value for your buck. The supply and demand for the price segment slowed down for SOLD properties but picked up for the rental investment market. In this price segment, you can really find the biggest value to square footage and could stand to make huge profits from not only the rental income but also the increase of equity vey quickly. This segment is not for everyone… It has a much larger risk than the other two market segments.
In June of 2020, the average single family house in this price range was about 3100 square feet and sold for a median price of $475,240. Today, that same segment has dropped in square footage but increased in value to a median price of $490,000.
The rental rates for June 2020 were $2,200 a month compared to today at $2,700 a month. That is a $500 a month increase in ROI, or $6,000 a year increase in ROI.
If you have ever wanted to build your wealth or just diversify your investment portfolio, please consider investing in real estate and letting the Pearland Real Estate Expert help you along the way. I believe NOW is a great time to invest in real estate especially in the Pearland or Friendswood Texas areas.
No matter if you are a seasoned investor or a brand new investor, I would be honored to help you with your investments into real estate. If you are someone that lives out of state or out of the country, our team can help you buy real estate in Texas, site unseen, and protect you and your investment. Although our team does not do property management, I would be glad to refer you to our partners in the greater Houston Texas area that could help along the way.
Call me today, and let’s buy some real estate.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/. And for all of your Pearland, TX and Northern Brazoria and Galveston County real estate needs, please visit my site at: http://www.danfrankrealty.com. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Remember, Danny Frank is always looking to hire new and experienced real estate agents for the team at JLA Realty. Are you ready to move to the next level in your career? Call me to join today or just visit my site for more information:
You can see my entire blog at: http://www.pearlandrealtyblog.com
Call Danny Frank, at 713-581-4702 to start looking for the JUST right house or to sell your house at the best price ever and in the quickest amount of time.