Today we received our first distribution from Houston Apartment #2. Our distribution came out to a 9% annual return. The distribution was for the first 3 months that we’ve own the property.
Just to recap, this is a 342 unit building that cost $12.4 million. The numbers going into this deal showed that it would cashflow right away and it has been doing just that.
We just received our monthly report for August and occupancy is up another point to 95%. Although we sustained some hurricane damage, we expect the hurricane to boost occupancy numbers as the number of available or livable units in the Houston area will decrease for the short term.
A hired consultant was able to appeal the property taxes and lower them by $50,000 which should go straight to our bottom line.
We do not have estimates on insurance claims or repairs due to the hurricane damage yet.