A Good Rental on Diamond Trace

By | 05/26/2008

I recently executed a contract on a property in my “buy and hold” target area or NE Fort Worth/Keller ISD area. The house is 1680 sqft, 3/2 built in late 2005 that requires no work other than some cleanup and landscaping. Tarrant county appraisal district values the property at $130,800 but I picked it up for $96,000 and it’ll lease for $1100-$1200.

I mainly focused my search on bank-owned (REO) properties. The pre-foreclosure opportunities are limited in this area due to the newer homes and lack of equity so it’s best to let the bank foreclose and they’ll take the loss. Unfortunately, good deals are moving quickly so I’ve been beat to the punch on a several deals.

I signed up for an awesome service, Investway that notifies me of any changes to properties in zip code 76248 less than $130k. I noticed this property when it listed originally at $129,900 then drop to $109,900 after 30 days. I drove by and checked it out but didn’t pull the trigger. A few days later was under contract and I wrote it off. A month later, on Friday morning I received an email that the property was changed back to active and dropped to $99,900. I called the listing agent at 8am and found out that the last contract at 105k fell through because it was taking too long for the bank to close. I submitted an offer for $90k and had it under contract at $96k by 10am. I’ll give credit to the agent for getting a get a bank-owned property under contract in just a couple hours. It was fortunate as this deal generated dozens of calls over the weekend.

Unfortunately, I won’t close on the sale until after the June 2 deadline to protest county appraisal values so I’ll be paying more on property taxes than I should be for the first year. Once I get that resolved I’ll cashflow at $300+ month.

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