Real Estate Investing Performance In Fort Worth
For any investor, the issue of the expected returns on a rental property is one that can't be overlooked. Always ensure you're well informed of what to expect before buying any rental property in Dallas-Fort Worth.
The table below provides an overview of what to expect from the Fort Worth real estate investment market for various rental properties. Use it to get a general idea of how much to invest and what to expect in terms of annual returns.
|Avg Purchase Price||Avg Cap Rate||Avg Cash on Cash Return||Avg Cash Needed to close|
|Commercial 5+ units LTR||115k - 135k per door||4.5% - 7.5%||3%-6% (assumes 25% down payment)||$35,000 per door|
|Short Term Rental (SFH)||275k - 350k||6% - 8%||8% - 11%||$75,950 (furnished)|
|STR (2-4 Units)||130k - 175k per door||8% - 9%||9% - 12%||$44,750 per door (furnished)|
|Long Term Rental (2-4 Units)||125k - 165k per door||3% - 5%||2% - 5%||$40,150 per door|
|Long Term Rental (SFH)||250k - 325k||2% - 4%||2% - 4%||$62,500|
|Househack (2-4 Units)||130k - 175k per door||n/a||n/a||$10,920 per door|
|Househack (SFH)||275k - 350k||n/a||n/a||$16,325|
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Investment Tips for Fort Worth Real Estate
In the past decade, the area has experienced an annual growth rate of around 2.37%, with the national average for the same period being 0.69%.
Within this period, the rate of growth recorded for the entire populace in Fort Worth has stood at 21.33%, in sharp contrast to the national average of 6.23%. In spite of this extreme growth, Fort Worth is still ranked among the top 10 most undervalued markets in the U.S.
Therefore, if you’re searching for a hidden gem investment property, Dallas-Fort Worth is one area in which you should actively consider investing. And remember, many of its residents are professionals who commute daily to Dallas and other nearby cities.
Main Activities/Attractions of The Dallas-Fort Worth Area
- Dealey Plaza: The several landmarks at Dealey Plaza would be unremarkable if it weren’t for the tragic assassination of John F. Kennedy on 22nd November 1993. Though its cityscape remains unchanged, the plaza became a National Historic Landmark in the same year.
- Dallas Arboretum and Botanical Garden: While Dallas has tons of traffic-laden highways and towering landscapes, it also boasts plenty of green space all around it. Residents are known to flock to the arboretum, which occupies 66 acres, to get a respite from the big city.
- Dallas Heritage Village: The Village is home to the finest and largest collection of Victorian and 19th-century homes and commercial properties in the Lone Star state.
- Arts District: Fort Worth is home to the largest urban arts district in the U.S and has a rare concentration of diverse cultural attractions. While here, you can visit plenty of unique attractions like the Winspear Opera House, Klyde Warren Park, and the Perot Museum of Nature and Science.
- Frontiers of Flight Museum: As its name suggests, the Frontiers of Flight Museum is a detailed attraction which seeks to honor the pioneers of the aviation industry. Many of its honorees are drawn from the 1920s and the 1930s.
- Trinity River Audubon Center: This is the place to visit for anyone interested in exploring the many amazing resources offered by the 6,000-acre Great Trinity Forest. The Trinity River Audubon Center is the country’s largest urban hardwood forest.
- Dallas World Aquarium: Although ‘aquarium’ may not be the best way to describe this particular attraction, you’ll notice that it has a variety of aquatic creatures, including eels and stingrays, on display in its many expansive tanks.
- Reunion Towers: This is one of the towers that make Dallas the city it is today. It has two rotating eateries and features four narrow shafts. Visitors to Reunion Towers can visit its GeO-Deck to brush up on Dallas’s story and view its ever-changing skyline.
Success stories investing in this area
“Used Victor in finding and purchasing my first investment property. Victor and his team were knowledgeable in providing help along the way especially toward the end while getting everything squared away.”
Long Term Rental
Victor was an awesome realtor! We were first time investors in Texas and he was very responsive, experienced, and pleasant. Every question we had he answered promptly and from start to finish Victor guided us thorough the whole process and made the buying transaction as smooth as possible for us! You will not be disappointed by working with Victor Steffen, thank you Victor!
Long Term Rental
Investment Strategies for the Fort Worth Area
Dallas-Fort Worth has a promising future. The city continues to take 2023 by storm, with reports indicating that active listings have increased by a whopping 91.7% in the last year alone. Buyers and investors are snatching up newly constructed properties within 35 days.
The local rental rates aren’t looking too shabby either, with the median rent for a one-bedroom listing going for around $1,250. These attractive rental rates come backed by a low housing supply, making it the perfect place to buy rental houses.
Is Fort Worth a Good Real Estate Investment?
Fort Worth, Texas is considered a great community to invest in for several reasons:
Strong economy: Fort Worth has a strong and diversified economy, with a growing number of businesses and job opportunities in industries such as healthcare, finance, and energy.
Cultural attractions: Fort Worth is known for its rich cultural heritage and is home to a number of museums, galleries, and performance venues, making it a vibrant and attractive place to live.
High quality of life: Fort Worth is known for its high quality of life, with a variety of recreational and cultural attractions, excellent schools, and a low crime rate.
Affordable housing: Fort Worth offers a wide range of housing options, including affordable single-family homes and apartments, making it an attractive option for people of all income levels.
Is it a Good Time to Invest in Fort Worth?
Now may be a good time to purchase real estate in Fort Worth for several reasons:
Low interest rates: Currently, interest rates are at historic lows, making it an attractive time to finance a real estate purchase. This can increase affordability and make it easier for people to invest in property.
Strong housing market: The housing market in Fort Worth, as well as in the Dallas-Fort Worth metropolitan area as a whole, has been strong and is expected to continue to grow in the coming years. This can lead to increased demand for rental properties, which can in turn increase rental income for investors. The housing market in Fort Worth, Texas has been growing and evolving over the last 10 years. According to data from Zillow, the median home value in Fort Worth was $223,000 in February 2021, which is up from $124,000 in February 2011, representing an increase of over 80% during that time period.
Fort Worth, Texas is home to a growing number of businesses and employers across a variety of industries. Some of the notable companies that have established a presence in Fort Worth include:
American Airlines Group: American Airlines Group is a major airline based in Fort Worth that operates flights to destinations around the world.
BNSF Railway: BNSF Railway is one of the largest freight railroads in North America, with a major presence in Fort Worth.
Lockheed Martin Aeronautics: Lockheed Martin Aeronautics is a major aerospace and defense company that operates a facility in Fort Worth that produces the F-35 Lightning II fighter jet.
RadioShack: RadioShack is an electronics retailer that is headquartered in Fort Worth and operates stores in the United States and Mexico.
XTO Energy: XTO Energy is a subsidiary of ExxonMobil that is based in Fort Worth and is one of the largest producers of natural gas in the United States.
These are just a few examples of the many companies that have established a presence in Fort Worth. The city’s strong and diversified economy, convenient location, and talented workforce have made it an attractive option for businesses and employers, and have helped to create new job opportunities for residents.
Best Neighbourhoods to Invest in Fort Worth
Here are three communities in Fort Worth that are well-regarded by residents and two of the more affordable options in the city:
West Fort Worth
West Fort Worth is a well-established neighborhood that is known for its spacious homes, mature trees, and proximity to cultural attractions and parks.
Tanglewood is a upscale neighborhood located in the southwestern part of Fort Worth that is known for its high-end homes, parks, and golf courses.
Montserrat is a newer community located in the northern part of Fort Worth that is known for its affordable homes, convenient location, and easy access to major highways.
Polytechnic Heights is a well-established community located in the southeastern part of Fort Worth that is known for its affordable homes and convenient location.
Park Hill is a community located in the southwestern part of Fort Worth that is known for its affordable homes and easy access to major highways.
These communities are just a few examples of the many options available in Fort Worth. When choosing a community, it’s important to consider factors such as proximity to work, access to amenities, quality of schools, and the overall lifestyle and community culture.
Financing Information for Fort Worth Real Estate Investors
If you’re looking for financing, you’ll be glad to learn that JJVM can finance owner-occupied loans for single-family or house hackers’ investments. Such a loan will attract a 20% down payment.