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8202 Orebo Street Houston, TX 77088
$194,790 | 3 Bedrooms | 2 Bathrooms | 5.1% Cap Rate
I'm Interested in this Property
Listing Description
Listing: Awning - Redfin - Zillow
Investing in this charming 3 bed, 2 bath, 1-car garage home located at 8202 Orebo Street, Houston, TX 77088 is a smart move for any rental investor! Built to FORTIFIED Gold and Energy Star 3.0 standards, this home is both weather-resistant and energy-efficient, providing you with the peace of mind you need as a landlord.
Inside, you'll find an open-concept floor plan, perfect for hosting tenants and entertaining guests. The kitchen boasts beautiful granite countertops, soft-close cabinets and drawers, and ENERGY STAR appliances, including a refrigerator, oven/range, microwave, and dishwasher. The home also features waterproof luxury vinyl plank flooring, low-E windows, and recessed lighting, all of which contribute to its weather-resistant and energy-saving features.
With no renovations required, this move-in ready home is perfect for tenants who want a hassle-free living experience. You can expect monthly rent of $1,650, with an estimated cap rate of 5.1% and a 10-year return of 15.2% per year, making this investment an attractive one.
Located in the desirable Acres Homes neighborhood, this home offers easy access to major highways and is just 20 minutes from IAH or Downtown Houston. Plus, with a B- overall neighborhood grade and an A diversity grade, your tenants will be living in an area that's both welcoming and vibrant.
Investment Financials
How much does the home cost?
$194,790
How much will it earn in rent?
$1,650 per month
How much will it cost to renovate?
Based on the information provided, it appears that this property does not require any renovations as it is move-in ready. The analysis indicates $1,500 for small touch-ups if needed.
How much cash can you take home in the first year?
Based on the provided information, while the first year may result in a negative cash flow of approximately $636, it's important to keep in mind that real estate investments are a long-term strategy.
What is the cap rate for this property?
The estimated cap rate for this property is 5.1%.
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
Where is Houston, Texas?
Houston is a city located in the southeastern part of the state of Texas, in the United States of America. It is the largest city in Texas and the fourth-largest city in the United States. Houston is located near the Gulf of Mexico, and it is the county seat of Harris County.
What companies are the major employers in and around Houston, Texas?
- ExxonMobil: One of the largest publicly traded international oil and gas companies in the world, with significant operations in Houston.
- Memorial Hermann Health System: A healthcare system that operates more than a dozen hospitals and numerous clinics in the Houston area.
- United Airlines: The third-largest airline in the world, which operates a hub at Houston's George Bush Intercontinental Airport.
- The University of Texas MD Anderson Cancer Center: A world-renowned cancer center and research institution.
- NASA's Johnson Space Center: A major NASA center responsible for human spaceflight training, research, and development.
- Shell Oil Company: A global oil and gas company with a significant presence in Houston.
- Chevron: Another major oil and gas company with a significant presence in Houston.
- ConocoPhillips: One of the world's largest independent exploration and production companies, with significant operations in Houston.
- Texas Medical Center: The world's largest medical center, with numerous hospitals, research institutions, and clinics located in Houston.
- Hewlett Packard Enterprise: A multinational technology company with a significant presence in Houston, specializing in software, hardware, and IT services.
What are the demographics of Houston, Texas?
Houston, Texas is the largest city in both population and area in the state of Texas. According to the 2020 United States census, the population of Houston is 2,304,580, an increase from 1,953,631 in 2000.
According to the QuickFacts, as of 2020, the racial and ethnic composition of Houston was: 23.9% White, 22.5% Black or African American, 0.5% American Indian and Alaska Native, 7.6% Asian, 0.1% Native Hawaiian and Other Pacific Islander, 43.6% Hispanic or Latino, and 2% two or more races. The median age of Houston residents is 33.8 years old, and the gender distribution is 49.4% male and 50.6% female. The QuickFacts also provides data on educational attainment, with 21.2% of Houston residents having a bachelor's degree or higher, and housing data such as the median household income, which was $58,166 in 2020.
What is the Niche neighborhood grade and school grade in Houston, Texas?
According to Niche, Houston is a city in Texas with a population of 2,293,288, and it is one of the best places to live in Texas. Niche gives Houston an overall grade of B+ for its neighborhoods, with grades ranging from A+ to D- for individual neighborhoods.
In terms of school grades, Niche provides a list of places with the best public schools in the Houston area. However, the grades for individual schools are not provided by Niche.
Alternatively, the Texas Education Agency (TEA) provides school and district grades for the Houston area. In 2021, the TEA released school and district grades for the first time since 2019. The grades range from A-F and are based on factors such as student achievement, school progress, and closing the gaps. The TEA's grades for Houston area schools and districts can be found on various news websites.
What is the property tax rate in Houston, Texas?
The property tax rate in Houston, Texas is $0.587995 per $100 of assessed value.
In addition, the median property tax payment in Texas is $3,797, and the median home value is $237,400. Harris County, where Houston is located, has a $4,042 median annual property tax payment and a $189,400 median home value, which are not far off from the statewide marks.
The Harris County Tax Assessor-Collector's Office is responsible for assessing and collecting property taxes in Harris County, including Houston. The office provides various resources and services related to property taxes, including tax breaks, exemptions, delinquent property tax sales, and workshops.
It's worth noting that there has been a recent proposal to lower the property tax rate in Houston to $0.567920 per $100, but this proposed new rate is not yet effective.
How many rental listings and vacancies are in Houston, Texas?
There are a significant number of rental listings in Houston, Texas. Zillow, a popular real estate website, has 2,124 single family rental listings in Houston as of the time of the search. Realtor.com, another real estate website, lists numerous apartments for rent in Houston as well.
Regarding rental vacancies, a report by iPropertyManagement states that Houston, Texas has an 8.8% rental vacancy rate, which is the highest among the major Texas cities included in the report. The rental vacancy rate in Houston decreased by 25.8% year-over-year, indicating a tighter rental market in the city. However, the report does not provide an exact number of rental vacancies in Houston.
What's the average rent in Houston, Texas?
The average rent in Houston, Texas varies depending on the neighborhood and type of housing.
RentCafe reports that the average apartment rent in Houston is $1,334, as of the time of the search. The average rent for specific neighborhoods in Houston ranges from $2,200 in Fourth Ward to $2,143 in Neartown-Montrose.
Zillow provides information on the median rent price for houses in Houston, which is $1,800 as of April 2023. House rentals in Houston range from $150 to $35,000 per month.
Zumper provides similar data to RentCafe, stating that the average rent for a studio apartment in Houston decreased by -5% to $1,182, while the average rent for a 1-bedroom apartment decreased by -4% to $1,245. The average rent for a 2-bedroom apartment decreased by -12% to $1,450.
From Listing to Rental
- 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"
- 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.
- 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.
