What do you guys think? I am looking to buy a place in Frisco, Tx. Home is 142K, 2000 sq ft, 3bd, 2 bth, brand new. Home in tX might takes 30000 years to appreciate. there are about 17 homes in that area for rent in the news paper matched my place. They are asking for $1K/month, if I am going to buy this place, I will be loosing $100 a month. Personally I think Tx is under value so I am hoping that when it go up in value, I would be sitting pretty. What do you guys think? should I take the lost and hope it will go up in price?
thanks.
(being a Southern boy transplanted to Calif, I speak your language)
You would be a damn fool (IMHO) to take this deal for the following reasons:
- too much supply; renters are very price senative
- renters can be hell on property; while your neighbors are adding, upgrading and landscaping your renters will be ridin’ the place hard and leaving in as-built condition at best
- since there is plenty of land in TX, I would assume that in a few years there will be some other development nearby with bigger and better houses.
I can list a few other reasons, but this gives you a few things to thing about. Point is are you prepared for the 1)hassles of being a landlord, 2) sinking more money into the property(to pay tax, ins. repairs) 3) possibly having a resale value about equal to what you paid.
Thanks for the post,
Frisco is about 20 miles from major business and next to plano. I think the dot com really hurt Dallas this past 4 years. Frisco is also close about 15 miles from the legacy park where all the high rises are. Once the Tech Firm coming back, I can see that the housing price will go up. Who else thinks that I am a fool to go into Frisco? Am I being too optimistic?