The real estate market in Texas is booming, especially in Fort Worth, which has become the twelfth largest city in the United States with over eight hundred thousand residents in the city. Moreover, many millennials are moving from big cities to Texas due to exponentially high property rates in the neighboring states and the onset of work from the home era.
In addition, companies such as Tesla and Oracle are shifting their base to Texas, which will make the Texan economy even more strong.
Amidst all this, Fort Worth has proven to be a viable option for people looking to buy a house for many reasons. Firstly, the median price of a house in Fort Worth is lower than the average of Texas and even the lowest in the country. This makes the housing market here most affordable. Young families or unmarried people can buy condos Fort Worth for as low as $90,000.
Secondly, the property is set to appreciate at an annual growth rate of 3%, which means that even if homeowners sell the house after a few, they will be able to cash in some profit. Thirdly, the rent to price ratio in Fort Worth is favorable, which makes it a perfect buyer’s market.
Here are some of the different types of real estate investments you must know about before investing in properties.
- Fix and Flips
If you are an investor and planning to flip a house, it is best to do it in a favorable buyer’s market such as in Fort Worth. As the name suggests, it is a real estate investment wherein a person buys a house, renovates it, and spends it for a profit.
However, one needs proper experience and resources to flip a house, so it is best suited for seasoned investors. So, only consider flipping a house if you know the local housing market thoroughly and have a trusted crew to do the renovation job.
- Long-Term Rentals
The NREIA calls long-term rental properties the backbone of the nation since more than two-thirds of Americans rent such properties that big investors often own. Any property that has more than four residential units can be deemed as a long-term rental.
Owning a rental property gives an investor a steady flow of rental income all from one property. As long as the rental income is at least one percent of the total cost of acquiring the property, it is a good investment.
However, it may prove to be hectic for some to fulfill the duties of a landlord. It involves screening tenants and taking care of timely maintenance and repairs in the building.
- Single-Family Homes
Unlike apartment complexes or condos, single-family homes are separate houses that can accommodate a small family. They are the most common types of housing in the country and attract investors, tenants, and first-time buyers alike. Usually, these types of homes have a driveway and a yard. The better the location the more will be the price of a family home.
Condos are usually the most sought-after properties in metropolitan areas only second to apartments. They are built on large land that is divided into separate units. People choose to live in condo complexes owing to the other additional services, such as a common park, swimming pool, or lounge. On the other hand, luxurious condominiums complexes even offer services like a salon, movie theatre, restaurant, and gym.
According to listings, you can buy condos in Fort Worth below $100,000, which makes them a great investment and highly affordable.
Some types of properties may perform better than others in terms of rental yield and appreciation owing to a plethora of factors, so you must consider seeking advice from a reputed realtor as they have proper knowledge of the local housing markets.