New Multi-Family Opportunity In Texas City, TX (25%+ ROI)

[Lyall Storandt]

We have a new multi-family opportunity available in Texas City, TX (greater Houston area) with the following details:

- 3 duplexes; all vacant.
- Package Price: $99,500.00
- Estimated Total Rehab: $9,000.00
- Total Gross Monthly Rent: $2,700

$2,700 x 12 = $32,400
Estimated Insurance: $1,000 x 3 = $3,000
Total Annual Taxes: $2,211.06

Net Annual Rent: $27,188.94

$27,188.94 / $108,500.00 investment = 25.06% ROI

I will be in and out of the office today, so your best bet would be to call me directly at 405-361-1341 if you have any interest in these properties.

[David Beard]

No reason to be sarcastic with someone posting a deal. 99.5% of turnkey sellers advertise ROI's with just taxes, insurance, and PM fees reflected. And this poster doesn't know if PM will even be needed. Taxes and insurance are the known facts regarding the property. Anyone is welcome to plug in their vacancy, maintenance, and reserve assumptions. These things are substantially contingent on how well the property is managed, which is a large variable.

That said, I'm curious about these postings that go broadly out to BP Nation. For a long-distance investor to even consider something like this, they need to be convinced that the support structure is there, chiefly a proven PM and contractor (with great references). So if the posting is targeted to local investors, that's fine, end of story.

But if the idea is to cast the net wider, I think it would be helpful to mention that you have sourced proven PM and rehab resources for the out-of-area investor, and be ready to provide contact info for those parties. Plus provide your assessment of the quality of the area and property, since you're the local expert. So I'm curious: Do long distance investors ever respond to these kind of postings?

On MF property, any landlord-paid utilities, plus the BR/BA count, should be noted.

As the poster says, the return appears pretty good, but the rehab cost looks like a basic turn (paint/cleaning/light repairs). I would give some rationale for it being so low, to build more credibility. And if the owner will pay $40-50/mth per unit for water/sewer, for example, I'd want to know that right up front, just like taxes and insurance.