10 Units Killeen

This is a 10-unit apartment complex plus a duplex in Killeen, TX.  It is located 2 blocks off base at Ft. Hood. It is very close to the commissary and would be convenient for families visiting our soldiers at Ft. Hood. 3 of the units have been used as short-term rentals, and are fully furnished to make for a comfortable and convenient stay.  

 All apartments are 1 bedroom/1 bath, and 480 sq ft. They are currently occupied with the tenants fully aware that a rent increase is to be expected upon renewal.  As you will notice on the supporting documents, the rents are less than the market supports.  Current rents are at an average of $700 per month.  All have new vinyl floors, new granite countertops, new appliances, and new shaker style cabinets.  Market rents should be at $900 per month.    The duplex is 2 bedrooms/1 bath on each side is currently vacant and will need to be fully remodeled or demoed.  Market rents for the duplex are solid at $1200 per month per side as BAH has recently raised soldier housing to $1200 per month.  Depending on your exit strategy, the lot size allows for a duplicated 12 or 24 unit to run parallel to the current unit which would more than double to triple your income.  There would still be plenty of room for parking.  

Cap ex is pretty minimal unless you do the new build or decide to renovate the duplex.  From a General Contractors point of view, we can’t see spending over $30k on the rehab. (Unless you did a duplicate build out to double your revenue, which would obviously increase the development budget.) 

Rehab consists of the following: 

 ⁃ There was never a backer put under granite. The granite currently sits directly on cabinets, making them difficult to open and somewhat dangerous, but a very inexpensive, fairly easy repair. 

⁃ Siding on back needs some attention. Some of the stand up showers that have all been redone had windows behind them that were durarocked over to tile showers. 

Exposed framing needs to be covered and insulation obviously installed. See pic of back for any other questions and we’ll get you a prompt response.  ⁃ Master plumbing has just been redone. Permitted and green tagged.

Duplex is currently being used by property manager as storage. Duplex has cedar shake roof and probably would be better utilized as a scrape and adequate parking for the incredible opportunity that you have with this lot size 😊  ⁃ 

-Roof  is a 30 year roof with maybe 6-7 years on it.  

⁃ No foundation work detected  

⁃ Wiring and plumbing up to date and code 🙏  

2022 Rents based on current occupancy  Current Gross Rents - $85,020

Total Expenses - $24,440 

Projected Net Income - $60,580 Purchase Price $800,000 

CAP = 7.5   

2023 Pro Forma based on Raising Rents to $900 

Current Gross Rents - $90,000 

Total Expenses - $24,440 

Projected Net Income - $65,560 Purchase Price $800,000 

CAP = 8.1