Ridglea Hills Duplex or Single Family??

Update to Post, 7/30/2018

NOW PRICED AT $358,000!!

Original Post, 6/19/18

We have a duplex for sale at 6455 Waverly Way in the great West Fort Worth neighborhood of Ridglea Hills. The current rental rates are undervalued due to the fact that the owner put some short-term tenants into the property to bridge the gap while we market and sell the property.

The thought is that this is a great rental property and with the proper attention would get market rent rates BUT that it could also be easily used as a 2 story single family home. So the owner wants the flexibility to sell to an owner occupant who wants to use the whole property or live in one part and lease the other.

Let’s break this down. Property info:

$379,000 – asking price ($124.30 per square foot)

3,049 total square feet

First Floor: 2 beds, 2 baths with 1,941 sf

Second Floor: 2 beds, 1 bath with 1,108 sf

Investment purchase:

Based on the last 6 months of leased properties in the Ridglea area, the average rental rate per foot is $1.11 per month. (here are the comps). So for this duplex that looks like around $3,375 per month in gross rent, for a yearly gross of $40,500.

After expenses, it looks like a 7-8% return IN A HIGHLY APPRECIATING AREA. Let’s not forget, cash flow is good, but location and appreciation are MUCH BETTER!

Single Family Purchase:

The way the layout works, there is already an internal staircase and door between the 2 units. Right now the doorway connecting them is sealed shut. Very easy to open up and have the first and second floors flow together. 

I ran some recent comps, last 6 months of sales, for homes matching this one. Take a look. The bottom line is that the average sales price is around $460,000 and $150 per foot. That makes this a great deal for a single family acquisition.

Appreciation:

Ridglea Hills has done well over the last 5 years. Here is a chart with the breakdown of the average price per foot for sales on single-family homes each year.

Based on looking at the price per foot figures alone as a good benchmark for values, this shows that Ridglea has enjoyed an average of 9.8% increase in price per foot from year to year. Texas Association of Realtors puts out market studies and for 2017 the average price per foot on homes increased 5.8% from 2016 to 2017.

If you have any interest in seeing this property or learning more about it, please do not hesitate to contact us!