I wrote this blog probably for myself more than anyone. I just got out of a lunch appointment with my awesome banker and it is very interesting to see how banker think. Banker are Risk averse. They are train to look for thing that might go wrong in a deal, an investment and find way to mitigate it! Unless the rest of us who only see opportunity and hope for the best! sometime playing a little defense help as well especially in this market
Anyhow i’m helping him looking for a couple “low risk” rental in the houston area and i actually never thought about finding an investment this way. So what is considered a low risk rental? but still able to have a cash flow behind to support it?
- Good School District
- Good job growth
- Organic Rent increase due to demand
- Organic Property appreciation
- Low Tax
- HOA is a must (yes i know)
- No big ticket items on cap ex (defer maintenance)
- easy to exit ( typical single family home that anyone could buy)
- 0.8% rule and above (if the home is 100,000, rent must be at least 800 per month)
What else is consider a low risk rental? Is such criteria above exist in your market?
For Houston there still is if you know where to look
In the pictures: can’t wait to go back to Vietnam and check out Jenny new home in Hue