Howdy Ags!

It's springtime and the beginning of what is looking to be a very active season for both the bluebonnets and local housing market in College Station!

To help kick us off - Red Pear Realty is pleased to present a wonderful opportunity 916 & 918 Crepe Myrtle St for anyone looking for a great investment opportunity, owner occupy/house-hack or a needing a place for your new Aggie to stay when fall rolls around.

Property Highlights:

• 1283sqft with 3 beds/2 baths on each side
• Private Backyards for each
• Ample parking in both the front and rear of the property

Duplexes in this area do not come up for sale very often and certainly not ones like this. So this property is likely to cause quite a commotion like the pollen hitting your allergies, Aggie Baseball hitting those swings and Aggie Basketball "buzzing" into the Sweet 16 (let a man dream on that last one)

The house was occupied by the previous owner up until a couple of years ago and has had several updates on both sides in the last 5 years including new flooring, new HVACs and a new roof. Just down the Kroger and other shopping areas, it also has great access to both Highway 6 & Wellborn RD. This place ready for it's new owner and comes in a centrally located in the hustle and bustle of South College Station.

If you have any questions, feel free to reach out to me at Luke@MyRedPear.com

What is the current rent on occupied unit?

1Aggie99 said:

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What is the current rent on occupied unit?

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Long term tenant is at $1300/month, which is at least $100-$200 (maybe even more) under market based on what I've seen.

The vacant side was occupied until March 1st for $1400/month with another long term tenant but they bought a house and moved out.

How does that cash flow?

Rustys-Beef-o-Reeno said:

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How does that cash flow?

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Are you interested? I'm happy to walk through the numbers and what it looks like to get it to cashflow.

Man time flies. Framed some of these back in 2002 when they sold for around 200k and rent was about $800 a side

JP76 said:

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Man time flies. Framed some of these back in 2002 when they sold for around 200k and rent was about $800 a side

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That might actually cash flow

Rustys-Beef-o-Reeno said:

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JP76 said:

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Man time flies. Framed some of these back in 2002 when they sold for around 200k and rent was about $800 a side

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That might actually cash flow

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In 2002, average interest rate was 6.54% for a 30YR term. That means a 20% down payment got you a $160K mortgage with a monthly mortgage of $1,015.52. Assuming a property tax rate of 2.1% at $200K value = $4,200 in property taxes (or $350/month). Let's assume $50/month for insurance. So $1,015 + $350 + $50 = $1,405 a month in monthly obligations. So your cash flow was $195/month….

So for this property, today, let's assume the following: 6.5% interest rate and $100K down, so a $300,000 mortgage. That translates to a $1895/month mortgage. The county has property taxes that are currently assessed at a $370K, or $700/month ($8400/year) plus insurance of $200/month. So your monthly obligation would be $2795/month. Rents in this same neighborhood, for this same sized house are going for $1500/month. Which means signing two new tenants at $1500/month puts you at $3000/month. $3000 - $2795 = $205 in monthly cash flow.

Overall - I get the point you're making though. It's tough to make any potential rental in college station pencil these days. But the last duplex in this neighborhood sold for 6.5% over ask and closed in 21 days with all cash.

There are investors who look to buy all cash in college station. I went to a county foreclosure auction in November for a 36-unit, 2012 built property right by the Ice Rink that sold for $4.6M. I watched the little old lady who won that auction call her bank to ask for a cashiers check to be made out to HUD.

Also, at this same auction, I spoke with a Man & his son from Montana who were here looking to buy that building and a few other properties. I asked what they thought the apartment would go for and they didn't think it would go for more then $3.5M.

I told them my guess was it would go for $4.5M and they were shocked to see it actually materialize. Not everyone is going to be using debt in this market. Which means any deal cash flows.

So 3% on the money down and 4-5% appreciation in value each year

One thing you left out is maintenance cost
A rough average is $100 per month per unit.

It's rough out there

And PE just gobbling up houses