I'm considering buying a townhouse in North Richland hills. It's a 2br, 2 baths with space for 2 cars. All numbers seem to be right for a BRRRR deal and the property is in good condition, seems to need light repairs to modernize and clean up, nothing major. Valued at about $126-135K and should rent for aprox.$1150-1300.
Any thoughts from locals that know the market?
@Yaron Avidan Know that your property insurance annually will be about 0.75% of the home value (roughly $1,000) and your property taxes will be about 2.6% of the home value (roughly $4,000). This puts those two annual costs at $5,000 plus mortgage, reserves, vacancies and property management. Don't forget to check HOA fees. Some condos/townhomes can have mismanaged HOAs that lead to high fees. I think it would be pretty tough to make it work.
In Texas with a property that will have a mortgage of some type, you need to be closer to 1.5% of the home value in monthly rent to see a decent profit. You didn't mention your purchase price, only the value so this could still be a good deal. If you can pick up the townhouse for $85k - $95k and put less than $5k into it, I would probably go for it.
Thanks Ryan, you made good points. Much appreciated.
It looks like you are out of town. So you may want a little info on that area. There are few townhouse in NRH. That said, if it is in the area I believe you are referencing the rent should be much higher. If you are interested in getting a non-bias opinion please pm me the address.