– 4 Duplexes / Total of 8 Units.
– Location: 8430 Round Rock Dr, Houston,
– Purchase Price: $557,200.
Number of Units = 8.
All Units are 2 bedrooms & 1 Bathroom.
Rentable sq-ft = 6,840.
Total Lot Area sq-ft = 40,000.
Price per unit = $69,650.
Property is turnkey and is very well maintained. All central HVAC with semi-new units,
slab-solid foundation, semi-new water heaters. Roof is about 15 years old. All
electrical panels replaced in the last 2 years.
6 Units are completely remodeled. Includes new vinyl waterproof flooring, new
sealing fans, new kitchen backsplash, semi new appliances, new light fixtures & paint.
2 Units will need a carpet / paint rehab
The new ownership could improve the general curb appeal of the property (new paint, fence, monument sign, landscaping & lighting). This will enhance the appearance of the property and will help achieve market rents.
The ownership will be implementing in-house property management using Cozy or RentRedi. A professional property management software with the required tools to manage a property this size remotely. This will not only save on cost but will help achieve the business plan way faster. All residents will be able to apply, pay rent, and request maintenance through the app.
The current rents average $0.81 per sq/ft. Market comps suggest an average rental value of $1.24 per sq/ft conservatively. There are only 2 leases in place and everyone else has a month-to month lease. The owner’s daughter also lives in the property and currently does not pay rent. She is on board that she will either have to leave or start paying rent (no lease in place). This translates to at least one additional rent day one! Additionally, the month-tomonth leases could be either renovated with a rent increase or not.
The property sits on a massive 40,000 sq/ft lot. There is a lot of land that could be either
subdivided and sold for a profit in a few years, or it could also be developed as a small RV
Park or more apartments which will increase the NOI substantially. This can also be
developed as Single-Family Houses as the area is currently seeing a lot of development.
Purchase Price: $557,200. Buyer pays all closing cost
Capex budget to complete the renovations is $45,000 total. Including Repairs and Operating Reserves.
Gross Rental Income: $67,020, considering current rents with the property as-is.
Vacancy of 10% conservatively speaking.
Expenses are being considered at 50% conservatively speaking. However, expenses are estimated to be around 35-40% since all units have individual electric meters. There is only a single water meter. However, each residents pays $50 per month for water per the owner.