Thoughts on a Multi-Family Deal in 76104, Fort Worth? Looking for Cash Flow!

[Tayvion Payton]

I’m considering amulti-family property in the 76104 zip code of Fort Worth, TX, and I’d love your feedback to help determine if this is a good deal.

Property Details

Asking Price: $169,999 (seller says it’s negotiable).

Current Rental Income: $2,400/month (duplex is vacant).

Configuration: Combination of duplex and triplex units. Some units are rented at below-market rates.The duplex and need rehab.

Historical Income: Seller claims it previously brought in $5,000/month when fully occupied.

Condition

Built in 1934, so it’s an older property.

Some permits were recently pulled (e.g., plumbing, window replacements, and sheetrock repairs), but it still needs work to get the vacant units ready to rent.

It’s located in a neighborhood with a higher crime rate but also near major highways and areas with rental demand (e.g., downtown Fort Worth and Texas Christian University).

My Goal:

I’m focused on cash flow, and this property seems like it could work if I can stabilize it. However, I’m not sure how to accurately determine its value, given the configuration and the fact that it’s not fully rented.

My Concerns:

1. Determining Value: How should I calculate the fair market value for this type of property? (It’s multi-family but not entirely stabilized.)
2. Rehab Costs: How much should I budget for bringing vacant units to market-ready condition?
3. Crime and Tenant Quality: With the higher crime rate in 76104, how much impact could this have on tenant retention and turnover?
4. Rental Market Trends: Is this zip code trending positively for investors looking for cash flow, or should I expect stagnant rents and challenges with appreciation?
5. Negotiating Price: What’s a reasonable offer given the current income and potential for more?

I’d appreciate any advice, especially from folks who have invested in Fort Worth or similar areas. Does this sound like a deal worth pursuing for cash flow?