Prime Houston Rental Investment Opportunity

Listing Description

Listing: Awning - Redfin - Zillow

Welcome to your dream rental investment opportunity! This stunning two-story home in the highly desirable Eldridge Park neighborhood is perfect for investors looking for a high-end property in a top-notch school district. With 4 spacious bedrooms and 3.5 bathrooms, there's plenty of room for your tenants to spread out and relax. The open-concept kitchen with granite countertops and island is perfect for hosting dinner parties or family gatherings. The home features an abundance of natural light, gorgeous travertine floors, a tankless water heater, and Nest thermostat for energy efficiency.

Outside, the large backyard with a full sprinkler system and covered patio is perfect for summer BBQs and outdoor entertaining. The home also includes an oversized detached 3-car garage for added convenience and storage. Located at the end of a cul-de-sac, this home is conveniently located near Beltway 8, Highway 6, Eldridge, I-10, and is just minutes from groceries, gyms, parks, and more.

As an investor, you'll appreciate the low flood risk in this area, which means no flood insurance is required. And with an HOA fee of just $46/month, your investment is hassle-free. Don't miss out on this incredible opportunity to own a stunning rental property in one of Houston's most desirable neighborhoods.

Investment Financials

How much does the home cost?

$439,500  

‍How much will it earn in rent?

$3,575 per month

‍How much will it cost to renovate?

According to the listing information, the estimated cost for renovation is $3,462 for partially repainting the interior of the home to neutral colors, and $4,500 for any major items that may need replacing, as the home is more than 15 years old. Therefore, the total estimated cost for renovation would be approximately $7,962.

‍How much cash can you take home in the first year?

According to the Awning Analysis provided, the estimated monthly rent for this property is $3,575, which amounts to an annual gross rental income of $42,900. After accounting for vacancy and operating expenses, the net operating income (NOI) for the first year is estimated to be $22,282.

‍What is the cap rate for this property?

The estimated cap rate for this property is 5.0%.

‍All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Why People Rent In Houston, Texas

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‍Where is Houston, Texas?

Houston is a major city in the state of Texas, located in the southern United States. It is the largest city in Texas and the fourth largest city in the United States. Houston is situated in Harris County, which is in the southeastern part of the state, near the Gulf of Mexico.

What companies are the major employers in and around Houston, Texas?

• ExxonMobil: A multinational oil and gas corporation, ExxonMobil is headquartered in Houston and employs over 13,000 people in the area.
• The University of Texas MD Anderson Cancer Center: One of the largest cancer centers in the world, MD Anderson is located in Houston's Texas Medical Center and employs over 21,000 people.
• Memorial Hermann Health System: A not-for-profit health system, Memorial Hermann operates numerous hospitals and clinics throughout the Houston area, and employs over 27,000 people.
• Chevron: Another major oil and gas corporation, Chevron has a large presence in Houston and employs over 9,000 people in the area.
• United Airlines: One of the largest airlines in the world, United Airlines operates a hub at Houston's George Bush Intercontinental Airport and employs over 14,000 people in the area.
• Phillips 66: A diversified energy manufacturing and logistics company, Phillips 66 is headquartered in Houston and employs over 3,000 people in the area.
• ConocoPhillips: A multinational energy corporation, ConocoPhillips has a significant presence in Houston and employs over 7,000 people in the area.
• Sysco Corporation: A foodservice distribution company, Sysco is headquartered in Houston and employs over 9,000 people in the area.
• BP America: A subsidiary of British petroleum company BP, BP America has a large presence in Houston and employs over 6,000 people in the area.
• Houston Methodist Hospital: A not-for-profit hospital system, Houston Methodist operates several hospitals and clinics throughout the Houston area, and employs over 25,000 people.

‍What are the demographics of Houston, Texas?

According to the United States Census Bureau, Houston city in Texas had an estimated population of 2.3 million people as of 2020. The city is also diverse, with a population that is about 22% white, 45% Hispanic or Latino, 17% African American, and 8% Asian, among other races and ethnicities.

In terms of economic data, the U.S. Census Bureau reports that there were about 137,700 employer firms in the Houston area in 2017, with a total of approximately 2.2 million employees. As of 2020, the median household income in Houston was $54,045, and the poverty rate was 16.2%.

‍What is the Niche neighborhood grade and school grade in Houston, Texas?

According to Niche, Houston is rated as a "B+" overall for its neighborhoods. The website also provides ratings for individual neighborhoods based on factors such as crime, public schools, cost of living, and local amenities.

For school grades in the Houston area, Niche provides a ranking of the best school districts in the metro area based on factors such as state test scores, college readiness, graduation rates, SAT/ACT scores, and teacher quality. According to the Texas Education Agency, the Houston area has a mix of school and district grades, with some earning "A" or "B" ratings and others receiving "C" or "D" ratings.

‍What is the property tax rate in Houston, Texas?

According to information from htownbest.com, the property tax rate in Houston, Texas as of now is $0.587995 per $100. However, there has been a recent proposal to lower the tax rate to $0.567920 per $100, which is not effective yet.

SmartAsset also provides property tax information for Harris County, where Houston is located. The median annual property tax payment in Harris County is $4,042, and the median home value is $189,400. The Commissioners Court sets the Harris County property tax rates.

SmartAsset also notes that Texas property tax rates vary by location and can be affected by local school districts, counties, and cities. For example, the Houston School District rate is about 1.037%.

‍How many rental listings and vacancies are in Houston, Texas?

According to Zillow, there are currently 2,095 single family rental listings in Houston, TX. 

Additionally, Realtor.com lists over 13,000 apartments and houses for rent in Houston.

The rental vacancy rate in Houston, Texas is 8.8%, according to data from ipropertymanagement.com. This represents a 25.8% decline from the previous year. Of the rental vacancies in Houston, 62.5% are in multifamily units, and units constructed after March 2010 have the highest vacancy rate at 11.3%.

‍What's the average rent in Houston, Texas?

According to RentCafe, the average rent for an apartment in Houston, TX is $1,334 as of February 2023. Zillow reports that the median rent for all property types in Houston, TX is $1,800, as of their latest data update. Additionally, Zumper reports that as of April 2023, the average rent for a 1-bedroom apartment in Houston, TX is $1,255.

From Listing to Rental

1. Place an offer on this property: If you want help finding the best representation, simply submit your information by pressing "I'm Interested in this Property"
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Hire a property manager to manage your property: If you choose to use Property Management we can help you select the best service and get you a deal on management in the area.