Need advice on Fort Worth property

[Theresa Ruzek]

Good morning. I need some advice on a property. I have an offer in on a property in the 76112 area of Fort Worth. The asking price was $84,000, and I have it under contract for $72000. The comps were all over the place, but most comparable homes are selling for between $60,000 and 90,000. I had it inspected, had a structural engineer come out, and an HVAC guy. It is an old house built in the early 1950's, and it has had some foundation work. The structural engineer said it was sound. It does have a federal breaker box, and the HVAC is functioning well, but about 17 years old. I think I will have to invest about $5000 on cosmetic upgrades, and I got a bid for $2800 to upgrade the electrical. I am buying this to hold long my term as a rental. Is it a descent deal. I tried to renegotiate the price down and the seller said no. Thanks for your input.

[John Chapman]

I've got a couple in that zip, and my personal opinion is that it's not a good deal.  Here's my overall take.  First, it's m'eh area overall.  Second, with repairs you are basically at retail.  Also, that HVAC will die on you in the next 1-3 years.  Third, I hate 2 bedrooms and will only buy them if I can add a 3 bedroom, at which point you can really get a much better rent. Fourth, with cap ex and the age of the house, you really need to be getting at least a $1000 month (water heater, for example, costs the same for a $900/month house as a $1000/month house.)