We are looking to assign our equitable interest in our property in Killeen, Texas. This is the perfect BRRRR model to buy, rehab, rent, refinance, and repeat with.
107 E Dean Ave, Killen, Texas 76541
This is the Perfect Investor Opportunity but with a property that already cash flows at $1,000/month as it sits, but could use quite a bit of TLC and work. The cap rate in this project is GREAT. If a person was to do a 15-30k rehab on this property it would increase the value substantially and give you even more cashflow on your investment. To secure the property you will need $2000 escrow deposit and you must be able to close within 20 days of contract.
The 840 Sq Foot 3 Bedroom 1 Bath house rents for $650 a month and the 400 sq foot 1Bed and 1 Bath apartment leases for $350/month as it sits. Both living spaces have the opportunity to be improved and remodeled to increase the rents and increase the ROI on the project. You would be surprised what it would look like with new paint on the inside and out, maybe some flooring in the apartment, and to freshen up the place.
If an investor put 20-30k into this place they would have the property in TIP TOP SHAPE and would be SIMPLE to manage as all would be NEW, and with a remodel it would increase the cap rate to around 15+% on the total project cost.
$1000 x 12= 12,000/year rental income lets say we anticipate being occupied at .9 just incase. =. $10,800 over $57,000 = 18.95% Cap Rate Taking into consideration a 90% occupancy rate for the year. Maybe budget around 200$ per month for repairs, maintenance, fixes etc and then the yearly left over cashflow would be $8,400/57,000= 14.73% Cap Rate on total project cost.
Take project at $57,000 do a value add rehab for $30,000 total project cost = 92,000. Increase rents to $450 for the apartment and $900 for the main house if remodeled. $1350 a month in cash flow or $16,200 a year for income over your 90,000 initial investment. =18.62% Cap Rate. Now let’s add in 10% vacancy as well as $100 per month for maintenance and additional items since the most of it would be fixed during rehab That would put total yearly net at $13,380 over your investment of 87,000= 15.38% Cap Rate on total project cost.