The Construction Consultant for Real Estate Investors
stoeA2wZ.jpg

Blog

Field Intelligence

What I've Learned So You Don't Have To Pay For It

Every article here comes from real projects, real numbers, and real mistakes, mine and my clients'. No theory. No gurus. Just what actually happens when money meets concrete.

Start here:

How to Buy Houston Investment Property Remotely Without Getting Burned

The investors who get burned buying Houston remotely all make the same mistake, they run numbers before they build a team.

I get these calls constantly. Somebody out of town has found a deal, run the spreadsheet, and decided Houston looks good from a distance. They're not wrong about the market. They're wrong about what comes next.

Before you make an offer on anything you can't walk yourself, you need three people on the ground at minimum. A property manager or leasing specialist who actually works rentals in that specific submarket, not a sales agent who picks up a lease deal when it falls in their lap. A leasing specialist will tell you what tenants actually want, what rents are realistically achievable, and which blocks you should avoid regardless of what Zillow says. That information is worth more than any pro forma someone built in a spreadsheet two states away.

Then you need a licensed inspector. Not a favor from a buddy. A licensed inspector who will send you a detailed report with photos inside 24 hours. Pay the extra money for thermal imaging and a sewer scope. Every time. I am a licensed inspector myself. You will not find me crawling through attics and into crawlspaces on my own investment deals. I know how to do it. That doesn't mean I should be the one doing it on property I have a financial stake in. Emotion and familiarity compromise your eye whether you want to admit it or not. Hire it out and stay objective.

Third, you need a contractor or construction consultant who can walk the property and give you a real number. Not a ballpark. Not an estimate built from photographs. Numbers made up from pictures are how remote investors blow their entire rehab budget on surprises that a two-hour site visit would have caught. That gap between what someone guesses from photos and what the job actually costs is where deals go sideways.

Once you have those three people, you need to think past the purchase price. Figure out your make-ready costs. Then go further and think about long-term ownership cost. If the roof is ten years old, you are looking at a replacement inside the next decade. That's ten thousand dollars or more sitting out there waiting for you. Set two to five thousand aside per year for deferred maintenance and do the math before you close, not after.

The number one reason I watch people fail at rental property is simple. They do not account for maintenance costs. Rental property is expensive to keep looking right. And keeping it looking right is exactly what produces the steady, unsexy, dependable income people think they're buying when they wire that first check.

I've been doing investment work in Houston for nearly twenty years. I walk properties, review numbers, assess repairs, and tell people exactly what they're buying before they commit a dollar. If you're looking at Houston from a distance and want someone who has actually done this thousands of times, let's talk.

Schedule a free 15-minute call at calendly.com/jeph-reit.