So, if you’re searching for a hidden gem investment property, Fort Worth is a promising place to look.
Before you get lost down a property-hunting rabbit hole, it’s important to understand the overall market.
In this guide, we’ll look at:
Important Fort Worth real estate market trends for 2024.
Fast-growing neighborhoods and towns full of investment opportunities.
Tips for finding and financing an investment property in Fort Worth.
Let’s jump in.
Why invest in Fort Worth real estate?
Fort Worth has a bright future.
As mentioned, it was the fastest-growing large city between 2010 and 2020, and the second-largest grower from 2019 to 2020. It is currently the 13th largest city in the country in terms of population. Population forecasts predict that DFW could hit nine million residents by 2030.
There’s just one small hiccup.
Fort Worth is attracting a huge influx of residents, but experts say many are currently commuting to Dallas and other nearby cities for work.
To curb this trend and grow the economy, Fort Worth is working hard to attract new companies and jobs to the city. At this point, the city doesn’t house nearly as many Fortune 500 companies as Dallas or Austin, but things are moving in the right direction.
The city is currently home to the American Airlines headquarters, and last year Charles Schwab moved in from San Francisco, bringing thousands of jobs along with.
The city’s proactive efforts have also paid off during the pandemic. While COVID-19 has plummeted many labor markets in the country, job growth in Fort Worth-Arlington rose by 2.2%.
If Fort Worth managed to boost the job market during a pandemic, imagine the growth potential in a post-pandemic world.
Fort Worth real estate market trends
The Fort Worth housing market is undergoing a transition towards a buyer's market, indicating that the available supply of homes exceeds the current demand. This marks a departure from the preceding years when the Fort Worth real estate landscape was notably competitive and favored sellers.
Several factors contribute to this shift. Firstly, there has been a significant increase in mortgage rates throughout 2023, resulting in a higher cost for prospective homebuyers. This, in turn, has led to a decline in the demand for homes, particularly among those entering the real estate market for the first time.
Secondly, the inventory of homes available for sale in Fort Worth has expanded. This expansion is partly attributed to sellers who had deferred listing their homes during the pandemic now opting to put them on the market. Additionally, some investors, faced with challenges such as rising interest rates and other economic considerations, are choosing to sell their properties in the Fort Worth area.
According to Redfin data As of December 2023, the median home prices in Fort Worth experienced a 3.2% decrease from the previous year, reaching a selling price of $330,000. Homes in Fort Worth are currently spending an average of 43 days on the market, an improvement from the 48 days recorded during the same period last year.
Bart Calahan, who serves as the President of the Greater Fort Worth Association of REALTORS® for the year 2023, underscores the prevailing market conditions and encourages individuals to contemplate making their home purchases promptly. Calahan highlights the potential scenario in 2024, where predictions suggest that declining interest rates may result in heightened competition and an upswing in multiple offers.
Fort Worth Water Gardens
Hot neighborhoods for Fort Worth investment properties
Fairmount
Fairmount is a unique historic district located just southwest of downtown Fort Worth.
The beautiful neighborhood, dating back to the 1800s, has seen a rise in investment and growth over the past decade. All of these developments — including plans for a brand new skate park this year — continue adding value to the neighborhood. And even amidst all the interest, there is still room for new investors.
People love living in Fairmont, and it was recognized as the USA neighborhood of the year for social revitalization and neighborliness last year.
Westlake
Westlake is a town located at the border of Denton County and Tarrant County’s northern tip.
It is the home of the new Charles Schwab headquarters, which moved in from San Francisco last January.
Charles Schwab’s Westlake campus houses over 2,800 employees and began a hiring spree of over 1,000 additional employees last June.
The number of Schwab employees is greater than Westlake’s entire population, suggesting the need for major real estate developments in the future.
Arlington
Arlington falls smack dab between Fort Worth and Dallas, making up the eastern edge of Tarrant County.
It’s home to The University of Texas at Arlington, Texas’ fourth-largest university. With around 40,000 enrolled students and five years straight of record-setting numbers of incoming freshmen, it’s a great place to own a rental property.
Zumper also ranked it as the most affordable city in DFW, making it an accessible option for first-time investors.
Euless
Euless also lies on Tarrant County’s eastern border, giving it easy access to both Dallas and Fort Worth.
Over the past year, one-bedroom rental prices in Euless grew by 25%, according to Zumper, which is faster than any other town in the DFW metroplex. It was even featured in a New York Times piece on ideal places to live.
The demand for single-family rentals is also booming in other towns and neighborhoods along Tarrant County’s eastern edge. As the DFW metroplex grows, this central location could become increasingly coveted.
For even more hot neighborhoods in the DFW area, check out our guide on investment properties in Dallas.
How to buy an investment property in Fort Worth, Texas
The process for investing in Fort Worth real estate can be broken into five steps:
1. Determine your investment strategy
To save time property hunting, clarify what investment strategy you want to pursue. There are several ways to build wealth with real estate, each with advantages and disadvantages.
Once you have a business model in mind, you can narrow down your property search and financing strategies.
2. Research your financing options
Since the best investment properties in Fort Worth move quickly, it’s best to know how you’ll fund your project in advance.
Three common financing options are:
Conventional loans. Banks and traditional lenders usually offer the lowest rates, but their strict requirements make them inaccessible to many investors. They can also take months to close.
Hard money loans. Hard money lenders in Fort Worth (or elsewhere in Texas) have loan programs designed specifically for real estate investors. They’re faster to close, involve less paperwork, and have more investor-friendly requirements.
Joint ventures. You can also finance your project by pooling together funds from a group of investors. This typically requires a proven history of successful projects.
In many cases, winning a deal comes down to speed. And if speed is your main concern, a hard money loan is the way to go.
Whichever option you choose, take time to get to know a few lenders. That way, you’ll know exactly who to call when you find an investment opportunity.
3. Hunt for investment properties
You can search for investment properties yourself on popular real estate websites, but since this is where everyone looks, don’t expect to find any hidden gems.
For less competition, network with wholesalers and agents familiar with the neighborhoods you’re interested in. They might be able to help you find lesser-known opportunities that haven’t yet made it to the MLS.
Once you find a promising Fort Worth investment property for sale, do your due diligence. This includes investigating factors like:
Vacancy rates
Resident demographics
Job and population growth
Home value and rental price trends
Percentage of renter- vs. owner-occupied homes
Plans and proposals for future developments in the area
It’s tempting to pull the trigger the second you find an attractive deal, but don’t forget to run the numbers. If you’re planning to work with a hard money lender, they’ll want proof of the property’s investment potential.
4. Finance your project
Since you’ve already built relationships with lenders, this part should be easy.
If you decide to go with a conventional loan, know that it may take months before you’re able to close. If you’re confident the seller won’t find another buyer during that time, this could be a great option.
But if you’re worried the opportunity might slip through your fingers, a private money lender in Fort Worth can get you funded with a short-term residential loan in as little as 48 hours.
5. Refinance (if needed)
Short-term residential loans are only temporary solutions. After 6 to 24 months, you need to refinance.
If you meet your bank’s strict requirements, you can refinance with a conventional mortgage. If not, you can work with a hard money lender to refinance into a long-term rental loan. These loans are similar to traditional mortgages, just with fewer hoops to jump through.
At Longleaf, we can save you fees by bundling your short-term residential loan together with your refinance.
Need financing for a Fort Worth investment property?
Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about Fort Worth investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.
