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Old 04-19-2010, 01:05 AM
 
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I've spent A LOT of time looking at real estate in Fort Worth. We'd like to rent for a while before we buy, because we've never been to the area (we're in Idaho).

Houses in North Fort Worth are so inexpensive compared to here, so that's a definite plus.

But rentals? Maybe I'm looking in the wrong places, but we have found very few homes for rent, and most are around $1200 for a small 3-bedroom. And they're not in great areas. Our mortgage for our 4-bed, 3 story house here is less than that!

Why is it so cheap to buy and expensive to rent? Can anyone point me to where I might find more rental info?

Thanks!
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Old 04-19-2010, 04:07 AM
 
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Because Texas is a no income tax state, the property taxes are a killer. So although the real estate is cheaper than many places, the property taxes will often raise your payment significantly. Every town has its own tax rate but you can estimate somewhere around 2.7% ish to maybe be an average estimate. These property taxes are then passed along to the renters in paying higher rents. For some people, not paying state income taxes and a larger amount in property taxes is an advantage while others don't see the benefit. It depends on how expensive your home is and how much your currently paying in property/state income taxes in the state you are coming from. Just beware that taxes can drive up the mortgage payment considerably.
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Old 04-19-2010, 08:16 AM
 
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I think there is more competition for rental homes now than 3 or so years ago--which means owners of rental property can raise their rents to "market" price

frankly the economy has made it difficult for people who own homes in other states but who move here without selling their homes to buy here in TX--theoretically it may be less expensive to buy a home here (than in some states) than rent but you still need to have your equity out of your other home in 98% of homebuyers' situations before you can qualify for a home purchase...

paying two mortgages is beyond the reach of most home buyers--much less qualifying for a second home mortgage

so that has made rental homes a premium in this market--people with kids especially want to have similar circumstances--yard, suburban neighborhood, good schools--vs apt living which some of them may have given up a decade or more ago...

there was never much of a rental market I think for nicer upscale homes because most people wanted to buy and could buy in the past--now with their equity tied up in home in another state (that might be rented out now but still not sold)...they are looking for a rental they can afford similar to what they gave up---

hard to do--and not cheap--plus I think some people who have been transferred/moved from Dallas area and have their homes on the market are feeling the same pinch at times--can't get the price they need out of house up for sale--and in some cases that has put homes on the market for rent here--

but many of these homes are in the 400+ range, sometimes a good bit higher--which makes their rent probably more expensive than a conventional mortgage--conce you try to cover the owner's mortgage/taxes/insurance + the fees for the property mgmt company handling the rental...

some HOA is nicer neighborhoods really try to limit rentals of homes in their area--and some home owners that what to SELL their home don't want to tie it up with a longer lease because that pulls it off the market...
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Old 04-19-2010, 08:45 AM
 
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There are plenty of rentals available depending on where you look. Try Craigslist and drive the area you are interested in, those are the best ways to locate them.

Right now you can find houses for $850 for 3 bdrm in Watuaga, $950 in NRH and Hurst, $1200 in Keller and houses in the last 3 up to $2000 depending on which part they are located in and the amenities they have. I'm sure it will be similar in N Fort Worth, though I haven't personally looked there.

There is a large variety of types of homes for rent. The last house we rented was owned by a man who owns about rental 25 houses and that's how he makes his living. The house across the street is owned by a couple who own close to 40 houses, all rentals. We are living in a house owned by a couple who bought a new house and are not ready to sell this one just yet, but couldn't afford two payments, so they rented it out. (this happens far more often than implied above)

So, keep looking and you will find a good fit.
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Old 04-19-2010, 09:47 AM
 
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This was very informative. I had heard that property taxes were high, but didn't realize that Texas was a no income tax state. It looks like we'll need to take that into consideration, as well as the electric bills, which appear to be double what we typically pay now.

I appreciate all the help and advice I've been given on this site, you guys are great!
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Old 04-19-2010, 09:57 AM
 
Location: DFW - Coppell / Las Colinas
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There are a whole lot of people moving here to DFW that cannot sell their home back in their old state. There is a huge demand for home rentals and many apartments are near 100%. High demand means hign rental rates.

Out of the last 10 relocation clients I've had probably 6 ended up renting and not buying cause of not being able to sell their existing homes.
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Old 04-19-2010, 03:10 PM
 
32,480 posts, read 50,954,572 times
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thanks Rankin for validating some of what I said...and Hypocore--why don't you do a PM to OP since you can't list names/numbers for rental sources
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Old 04-19-2010, 04:22 PM
 
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Because they've tightened the credit up. You need a down payment and adequate income as it should have been all along. That took alot of demand out of the market. Hence prices dropped.
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Old 04-19-2010, 06:30 PM
 
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prices have not dropped that much in DFW are or in most Texas markets...
we are not having the 30-50% loss that some cities like Las Vegas, Phoenix, Miami, Detroit, others in California have had--
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Old 04-19-2010, 09:17 PM
 
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Quote:
Originally Posted by loves2read View Post
thanks Rankin for validating some of what I said...and Hypocore--why don't you do a PM to OP since you can't list names/numbers for rental sources
If I had one to actually recommend I would. First landlord we had was wonderful, sadly she's passed away and her properties have been divided up amongst her children and they are all infighting.

Second landlord we had tried really hard to maneuver us into buying the house which we did NOT want to do and at this point I could not in good faith recommend him.

Current landlord is actually a relative and this is the only rental they have or ever plan to have.

There are numerous others I've come across, but have no actual experience with them. The house across the street that I mentioned is owned by someone I've never met, I just know they own close to 40 in Tarrant County.
One house we looked at is owned by a women who owns several, but the timing couldn't work for us, so I can't say much about her or her other properties.
Another house was one owned by someone holding two mortgages and was really willing to work with us, but it was much too small for us and teeny tiny lot.

While I know there are tons out there, I don't have any that I would be able to personally recommend.
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