Advice on a deal in Fort Worth, Tx

11 Replies

Hey All!

I live in San Diego, CA and have been referred to a friend of a friend who is a property manager/broker in Fort Worth, Tx who brought me a deal. I was hoping to get some info on the area and whether or not this is a good deal:

Duplex located on Hulen Park Circle, purchase price $250k, each unit is 2bdrm/1bath, 1003sqft, rents for $1125 (both sides currently rented). Any help would be greatly appreciated!

@Isabella Phillips , really need more information, but I think you can do better. I looked for the duplex on the MLS but could not find the one your talking about.

But i did a quick search, and found this pending one.

https://www.realtor.com/reales...

A two bedroom 2 bath is probably going to be better than a 2/1 but it has to be evaluated.   As an investor, don't rely on a realtor to show you deals.  Sure let them help you but you should be doing the scouting!  The one I just showed is pending but no big deal, pending deals fall through.  

Even if it doesn't fall through, when I find a pending deal that I like it just motivates be to find the same deal or better.  Those deals are out there.  I am strictly a duplex investor and I have one in Ft Worth but most of mine are in Austin and Bryan College Station.  Cheers! 

@Isabella Phillips

This area rents quickly. The tenants are on the lower end of quality. We have bought, sold and manage many duplexes in that area. You're paying on the high end but in today's world that should be expected. Duplexes are hard to find in DFW.

I'd be interested to see those leases if rented as I pulled lease comps for Hulen Park Circle, and the highest leases I saw were under $1100. Average is in the $900 range, all 2/1 and the larger units that were 1003 sq ft, rented for $1025-1050 average, only 1 was highest at $1095.

Lisa is correct about the rental rates. They may be counting pet rent in with that rate. Or they may have increased the rent at renewal. Both are very common reasons the rental rate would be higher than MLS shows. But I would have no problem marketing a clean 2/1 unit at $1,100 because there are zero vacant units in the area.

@Kyle Mccaw yah, i hear ya on the low inventory. I see one listed (6620 S Creek Drive) for $209k but do you think that one is lower bc of the area? Is Hulen Park a better area? I just hate that i don’t know the subdivisions to know which ones to go for or stay away from or to be able to compare pricing.

@Lisa Walker they are both section 8 tenants. One lease is coming due this month and the other expires in May of next year. I’m not sure why they’re on the higher end but maybe i will run my numbers at 1,000 just to be safe. Thanks for the heads up on that.

@Isabella Phillips , a few things to keep in mind.  When someone tells you that the tenants are Section 8 do you know what that means?  If not you need to learn what that means.  Ask yourself, why are people on section 8?  Does Section 8 housing have any affect to the desirability of the area for new renters?  Dealing with a government authority enhance or deter my ability to find and keep quality tenants?  

Yes you are at a disadvantage not living in the local area, it makes it that much MORE important you feel comfortable with the property you are considering.  

@Isabella Phillips This is a C class neighborhood. We often get higher rent for section 8. You need to know how to manage the system to get the best rental rates. Section 8 tenants are not necessarily worse than traditional tenants. You can keep them to the same requirements as traditional. I have had good and bad section 8 tenants. I have had good and bad traditional. With section 8 there is a fair amount of up front paperwork to complete. The section 8 program the tenant is on can be from any number of housing authorities. Most likely they are Fort Worth. But the tenants can be on a program from another city or even county. Believe it our not one of the best section programs to work with is Plano's. And I don't think any of our Plano section 8 tenants lived in Plano.