01
Cash flow first, appreciation second
Houston is a yield market more than an appreciation market. If a deal doesn’t cash-flow at year one with realistic vacancy and expense assumptions, the appreciation thesis usually doesn’t save it.
Investor representation
Houston rental and investment, numbers before narrative.
Long-term rentals, mid-term rentals, and flip analysis across Greater Houston. We run the math on cash flow, cap rate, and downside before we tour anything.
What I do on an investor deal
Three strategies, one underwriting framework.
- Long-term rental (LTR).Single-family in Cypress, Katy, Spring, Tomball. Underwrite for cap rate, cash-on-cash, and 5-year break-even on tax/insurance escalation. Property management referrals if you don’t want to self-manage.
- Mid-term rental (MTR).30–90 day furnished rentals — traveling nurses, relocation, insurance claims. Higher gross, more turnover, more management. Best near TMC and corporate parks. Not every neighborhood supports it.
- Flip analysis.ARV, repair cost, holding cost, sale-side commission and concessions. Houston flip margins have compressed since 2022; we underwrite to a real exit, not a Zillow estimate.
- 1031 exchange coordination.If you’re trading up from an existing investment property, we coordinate with your QI, identify candidate replacements within the 45-day window, and close within 180.
- Off-market sourcing.Pocket listings, wholesaler relationships, and direct mail in specific zip codes. Not every deal, but available when MLS inventory is thin.
- Disposition strategy.When you sell an investment property, we model long-term capital gains, depreciation recapture, and whether a 1031 or installment sale beats a straight cash-out.
Underwriting principles
How we read a Houston rental deal.
02
Tax and insurance are the killer line items
Greater Houston property tax runs 2.0–3.0%. Insurance has hardened post-Harvey and post-Beryl. We underwrite tax escalation and insurance hikes explicitly, not as a static line.
03
Manage exit risk on day one
What’s your exit? Sell to a homeowner, sell to another investor, refinance and hold? Each implies different finish levels, school-zone exposure, and neighborhood profiles.
Investor questions
What investor clients ask first.
Realistic gross yield ranges from 5–7% on single-family in suburban Houston, sometimes higher in C-class neighborhoods with higher operating risk. Net yield after tax, insurance, vacancy, repairs, and management is typically 3–5%. We underwrite every deal to that frame — if a listing pencils outside this range, we ask why.
Next step
Bring me a deal. I’ll run the math.
Send me a listing or a zip code. I’ll underwrite cash flow, exit, and downside, and tell you whether it’s a real deal or a Zillow mirage.