Houston TX- 40 SFR- Assumable Financing @ 4.72%

Overview

This Houston TX portfolio includes 40 Single Family Rental Homes that have been renovated by the current owner with standardized finishes. The majority of the units have been converted to Houston’s Housing Choice Voucher Program (known by many as Section 8). Participation in this program creates a floor for rents and creates a steady stream of guaranteed income backed by the program. The current owner has the ability to manage all properties post closing.

The portfolio is being offered at a discount to Fair Market Value with a going-in Cap Rate of 6.5%

Here are the numbers:
Average Home ARV: $190,000
Average Asking Price Per Home: $173,675
Average In-Place Rents: $1,790
Cap Rate: 6.5%
Stabilized Cap Rate 7.5%
Assumable Financing Rate: 4.72%
Cash Flow at Asking Price $195,250
Cash On Cash Return: 7%