Address: 103 W Dunn Ave, Killeen, TX 76541, USA, Killeen, Texas, US
Created date: November 9, 2023
Date last updated: November 9, 2023
- Going-in Cap 8.59%
- Tax adjusted, after renovations Pro forma Cap 12.07%
- Strong value-add opportunity
- Cash flows day 1
- 5 units renovated, 9 classic units left to update
- Great unit mix, all units 2 bed / 1 bath
- Electricity individually metered, tenants pay
- Space for additional development
The offering is a fourteen (14) unit apartment located in Killeen, Texas. The property is located near Fort Cavazos Army Base, which is the largest active-duty armored post in the U.S. Armed Forces.
Per the Bell County Appraisal District (BCAD) the total building square footage is approximately 10,086 and the lot is 0.563 acres. The apartment complex was completed in 1983.
Per the rent roll, each unit is a 2-bedroom/1-bath with approximately 720 square feet of space.
The two (2) buildings have slab foundations and pitched roofs with composite shingles that owner reports were replaced in 2017. The complex has individual electric meters, and the tenants are responsible for obtaining and paying their electricity bill. Each unit has individual HVAC and hot water heaters. Water is master-metered.
While the apartment complex will cash flow day one, it offers a strong value-add component. This should provide higher rents as well as a reduction in maintenance and repair and water expenses. The owner has recently completed updates to five (5) units. That will leave nine (9) classic units to renovate.
Based on the owner’s renovations (+/- $4,000/door), the budget for the unit renovations is +/- $36,000 for the remaining units.
According to the Realtors Property Resource Trade Area report for Killeen, TX 76542 (see on OM):
- The Average Household Income is $45,512
- The Average Disposable Income is $37,952
- The Median Household Income is $32,084
- The median age is 31.2 years
- The average household size is 2.29
- The ZIP code has a Median Estimated Home Value of $151,060, which has increased 11.1% over the last twelve months
The BLS reported that the unemployment rate for Killeen fell 0.0 percentage points in September 2023 to 4.6%.