Housing real estate in Fort Worth (purchase and lease) (Grapevine: 2013, rentals)

[transplant2013]

So I am thinking of making an investment in Fort Worth housing real estate and I just want your input. Basically my plan is to purchase a decent family house (in the $300k range), preferably in the TCU, West Berry, and along the South Hulen areas. The plan is to then lease the house.

My question is taking in house price inflation in Fort Worth and the lease income, subtracting the 2.81% property rate in the city and property management fees, will it be a decent investment? I will not be in Fort Worth so paying for realty management fee is a must. I will purchase the house full price, no monthly mortgage.

What do you think?

[WorldKlas]

Originally Posted by transplant2013

So I am thinking of making an investment in Fort Worth housing real estate and I just want your input. Basically my plan is to purchase a decent family house (in the $300k range), preferably in the TCU, West Berry, and along the South Hulen areas. The plan is to then lease the house.

My question is taking in house price inflation in Fort Worth and the lease income, subtracting the 2.81% property rate in the city and property management fees, will it be a decent investment? I will not be in Fort Worth so paying for realty management fee is a must. I will purchase the house full price, no monthly mortgage.

What do you think?

I have been considering this same investment over the years (but only if served by Tanglewood Elementary or Lily B Clayton elementary) but unfortunately all the homes in my scope of interest are quite old. As a longtime rental real estate investor, my houses built before 1980 cause lots of maintenance issues.

[tcualum]

Honestly, the housing market for homes in the 200s -300s is still hot right now in the desirable areas of Fort Worth. You're going to have trouble getting any sort of deal right now that would allow you to profit. Getting a home in the Tanglewood area which you mentioned (not specifically) is next to impossible these days since they often are sold before they even hit the market. As for renting out in the TCU area, you have to be careful that you don't buy in an area full of TCU student rentals.

I do agree that Fort Worth doesn't have enough rent houses. We're trying to sell our house and then rent in Fort Worth while we build our home. We already own the land. It's been very difficult to find a decent rental home.

[TeamLynn]

I would not pay $300k for a rental in Ft. Worth....that market is very thin.
People who can pay that kind of rent are buyers not renters.
So chances are if you do that you'll have higher turnover, longer vacancy rates.
I'd shoot for buying two $150,000 homes if we can find them in the burbs.
You can probably get newer homes with better schools.
Also the way you get rich in real estate is to leverage your funds....not pay cash.
So potentially you could buy 10 homes with $300K in cash or a small apt building.
I guess it depends on if you need the cash flow today...or looking for future returns.

[ChristieP]

There's a house on my street in Grapevine that sold for $260k this summer in a bidding war between multiple buyers. Evidently the winning buyer was an investor, because as soon a s the house closed, a "For Rent" sign went up in the yard. It's now been 3 months, and the house is still vacant. (We aren't in the best elementary school zone here.) I'm sure the new owner is kicking himself for going so high to buy the house now...

[mschrief]

There are a few homes in the Marine Creek area which would make good rentals. 160k etc.