Here comes Apartment #3
March 15th, 2009 by KenricI guess its time for another apartment investment in Houston. Here are the details on it:
Class “B” 164 unit apartment with a good mix of studios, one bedroom and two bedroom units. It was recently remodeled in 2006. Price is about $7.7 million with project financing needed to be about $5.8 million.
This apartment building is a class “B” building located in a class “A” location. Occupancy is about 96% and it is projected to cashflow at closing with a decent cash on cash return between 10%-11.5%.
It will probably take a while for this to close like Apartment #2 did.
Apartment #2 is going well. It is at 94% occupancy right now and there’s not much to report except that it’s going as planned.
Apartment #1 is also going well with occupancy at 96% and income was at its highest ever last month. It would be nice to get some cashflow from this investment finally. We are in the process of refinancing to a lower interest rate. We had an appraisal done last month and it came in above what we paid for it, thus we can proceed with the refinance. By my calculations, once the refinance is completed (hopefully a 2% drop in rate) it should drop our interest by $8,000 a year.
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