1) Located in the Aldine district in an unincorporated area of north Houston, TX. in the county of Harris. The area is made up of largely Hispanic households. Many small industrial facilities are located in and near the community. Its location is inside Beltway 8, between I-45 and the Hardy Toll Rd. The district government estimates that the district is 15 minutes driving distance from Downtown Houston, and is in proximity to the Houston Ship Channel, the Port of Houston, George Bush IAH, and Humble. The area is largely made up of homes dating in the mid to late 70's. Approximately 70% of the population in the Aldine area are renters. The rental occupancy in the area is above average when compared to the city of Houston.
2) The property is highly upgradeable. Upgraded properties in the are receiving much higher rents than Hollyvale. The current owner has proven upside by upgrading 3 of the units. These units are getting approximately $100 a unit more in rent than those units that have not been upgraded. Some interior improvements a new owner may consider and that should allow an increase in rents are granite counters, new lighting and hardware package, cabinet painting/replacement, faux wood flooring. In addition, a new owner could add some covered parking and charge back for trash and water for additional income. Landscaping improvements would improve the curb appeal of the property. There is one laundry room on the property but none of the machines are working. A new owner may be able to put in his own machines for additional income. In addition to interior upgrades the exterior could also be aesthetically improved. The current owner has put approximately $650K in CapX since ownership. There are 18 exterior storage units that may be rented for $25/ea. Each unit is individually metered for Water, the water company is Aqua TX, in addition, each unit has its own hot water heater.
3) It is the broker's opinion, that with interior and exterior upgrades and the correction of minor deferred maintenance, the property could see upside in the rents (the rents seem to be well below properties in the area that have been upgraded).
4) Rent and Occupancy Growth - The population growth in Texas cities has been steady, this trend should continue due to a lower cost of living and lower taxes. Texas has seen the highest influx of out-of-staters than any other state in the US. In addition, corporate move-ins are on the rise as well. This should sustain rent growth in major Texas cities well into the future.