Author Topic: Apartment complex moving in down the street....  (Read 1030 times)

Malleus

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Apartment complex moving in down the street....
« on: December 04, 2016, 08:28:58 PM »
Howdy. First-time long-time.

I have a paid off high-end 3/2 freestanding home with a small yard renting for almost exactly 1% in the Houston Heights (decent market even during the oil slump thanks to gentrification, blahblahblah.)

Cash flow after taxes, maint. etc. Is $1,500, which I funnel directly into Earlyretirementsville.

I will get to the chase. My rental is on a fairly busy street. This has always been ok by me because I have plenty of eyes on my For Lease sign. But there is a high-end 300-unit apartment complex (and associated retail/restaurants @ ground level) going in two blocks down the same road. How does this change the game for me? Does anyone have experience with this?

Is hoping that retail/restaurant and continued gentrification off-set market saturation and my little yard looking that much more appealing to renters not seeking a shoebox just wishful thinking? Time to cut and run?

Relatively new to all of this, so I definitely appreciate everyone's input! Thanks!

Drifterrider

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Re: Apartment complex moving in down the street....
« Reply #1 on: December 05, 2016, 12:57:03 PM »
If it is "high end" enough, it could increase the rent rate you charge.

mskyle

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Re: Apartment complex moving in down the street....
« Reply #2 on: December 05, 2016, 01:44:49 PM »
Any idea how much the apartments are going to rent for and what kinds of amenities they're going to have compared to your rental? I know this has been an issue for friends of mine who own older condos in neighborhoods with lots of new luxury condo high-rises going up - the older units are generally a bit more spacious but the newer ones are shiny and new and have gyms and pools and things (the new places also have higher condo fees).

If the new apartments are going to be more expensive (for a 3/2 - ignore square footage for now) than your house, it probably won't make much difference or could even be a net positive as the new retail and restaurants make the neighborhood more attractive. But if they're the same price or cheaper, you might have some trouble.

Malleus

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Re: Apartment complex moving in down the street....
« Reply #3 on: December 05, 2016, 07:10:12 PM »
If the other complexes in the area are any indication the price/sqft will be about the same. I think their amenities will not include a pool or any communal green space, so I'm hoping that, the added restaurant/retail and a few upgrades I plan on making b/w tenants will make this a net wash for the rent I charge. I appreciate the input guys! The sky may not be falling after all.