The Chip and Joanna Gaines effect on Waco, TX

Justin Ramos started his real estate career the way lots of New Yorkers do: by renting out a spare room in his Queens apartment to cover his mortgage. He then set his sights on Waco, TX, a city that’s had a very good decade thanks to two HGTV stars who put this small city on the map with a whole bunch of shiplap.

How he got started: “My best friend had moved to Waco, and each time I visited, it was clear that a tourism industry had developed to visit the properties renovated by Chip and Joanna Gaines,” Ramos recalls. “Although out-of-state investing can be difficult, my friend introduced me to a real estate agent, who introduced me to a property manager.” He has since purchased two properties for $80k and $105k, which rent for $1,075 and $1,350 per month. 

His market’s pros: “Chip and Joanna helped put Waco on the map nationally, which drives up out-of-state buyer awareness and long-term property appreciation and resale visibility,” he says. Beyond HGTV, Waco boasts big employers like Baylor University and SpaceX, located 20 miles out in McGregor.

The cons: Short-term rentals are heavily restricted in terms of where and how many can operate. But Ramos finds long-term rental demand is strong, too. “The salaries are high enough to support current rental prices, but not high enough for most folks to own,” he says. “So the tenant pool is deep.”

His advice: “House hacking is the best way to start because it puts a roof over your head while putting money in your pocket,” he says. From there, don’t be afraid to invest out of state, provided you’ve found a great on-the-ground team. Ramos helps agents cultivate relationships at Compai.

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