Looking to invest: Forney- yea or nah?

Question

Dear BP community, I am planning on buying my first investment property and want your guidance on Forney, TX. I am looking at a 200k investment with 25% down.

1. Will I see any cashflows if I invest in Forney?

2. Any insights on appreciation?

3. Is it a decent rental market as I do not want (obv) high vacancy rates?

Any inputs highly appreciated!

Thanks!

Audrey L. · Answer

Hi Aastha! I am a local realtor and do work in Forney. I think it's a great time to invest there. I need to know a little more about your plan for rehab and financing to answer the cash flow question, but homes there are appreciating well (esp. with the mass influx of relocations to DFW) and rentals are performing well.

Audrey L. · Answer

Aastha, I apologize for the delayed response! There is a production builder in Forney accepting investors - and with a few month lead time for the new builds, I think it would provide enough time to secure a tenant who could move in at closing. Here are some big building events bringing people to the area: Forney Industrial Park & Sapphire Bay

Mayur Tolani · Answer

Hello Aastha,

Just following up to see if you did go ahead and how was your experience? I am looking to invest in the similar way as yours.

Thanks

Aastha Chandhok · Answer

Hey Audrey- I want to do a 25% down with a conventional loan for the rest. Buy and hold strategy. What is the average  time to find a tenant? Do you have a view on why this area will appreciate more than others? I know of the upcoming Amazon distri center.

Aastha Chandhok · Answer

Thanks for your reply, Bryan! There is also new construction in the area for ~200k. I have a buy and hold strategy and not looking to flip. As it is my first investment, I want to buy a new house so there are limited repairs etc needed. Did you evaluate any other areas when you were looking to invest? Melissa?

Bryan Mitchell · Answer

@Aastha Chandhok, there appears to be a lot of new construction in Forney. Of the 460 homes listed, over 300 are new construction all of which are in the $300K+ range. Backing out the new construction, there are a little over 100 homes for sale. Of these hundred homes there are only 10 under $200,000. I was going for appreciation, I purchased one of those $200,000 homes closer to the new construction. However, if your goal is to buy and hold or flip, you want to find $150,000 homes with great potential that are near the more pricey homes. Renovate for $50,000 and sell for $250,000. They get a beautifully decorated recently renovated home for $80,000 less and they still get access to those good schools.

Looking to invest: Forney- yea or nah?

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