Today, we’re talking about real estate investing in Fort Worth and why rentals could possibly be the way to go.
The U.S. homeownership rate peaked about ten years ago at a little over 69 percent. Today, it’s at 64 percent, which is the same level it was half a century ago. Many experts believe that in the next 15 years, this rate of ownership will drop to 61 percent.
The national rental vacancy rate is at a 30-year low. More Americans are turning to rental property as a lifestyle choice, and in many markets the supply is equal to or less than the demand. This has created an upward pressure on rental rates. As far as demographics, Millennials, the 18-34 year old age group, generate a large portion of the homebuyer market, but many people in this group are strapped with student loan debt and struggling with new credit regulations forcing them to continue renting. This means there’s a huge opportunity for investing.
Real Estate Investing in Fort Worth
Opportunity exists in the North Texas area to acquire rental properties and hold them for the long term. Many investors buy for cash flow and rental income must cover the mortgage as well as taxes, insurance, repairs and management fees. It’s especially beneficial to buy in cities with strong job growth opportunities. Fort Worth and the Alliance Corridor are among the fastest growing areas in Texas in population and job growth. There is a strong stock of tenants in this area, which is critical for landlords. Good school districts and moderately priced homes will also increase the potential for a large pool of tenants.
Maintaining and Maximizing Your Investment
Once you purchase your rental property, don’t just sit back and let the rental income flow. Real estate investing is not a walk in the park. Even if you buy a home with no initial maintenance or repairs and you have a tenant in place, you need ongoing maintenance for the physical and financial components of the asset. This is the time to call a professional property management company to help you maximize your investment.
A professional manager can help you take care of the variables that come with being a landlord. For example, you need to know what to do if the tenant pays late or doesn’t pay at all. There will be maintenance calls at 2 a.m. You might not know the laws you need to follow when you have to evict a tenant and it’s important to be familiar with the property codes. An experienced manager can protect your investment and maximize your return.
If you have any questions about investing in the Fort Worth area, please contact us at DeGuire Property Management.