1 / 16

INVESTMENT OPPORTUNITY!

INVESTMENT OPPORTUNITY!. Investing In Houston’s Economic Strength with a “Purpose Built” investment property The Following is provided for informational purposes only and is not intended as Tax or Legal advice. DISCLAIMER.

march
Télécharger la présentation

INVESTMENT OPPORTUNITY!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INVESTMENT OPPORTUNITY! Investing In Houston’s Economic Strength with a “Purpose Built” investment property The Following is provided for informational purposes only and is not intended as Tax or Legal advice

  2. DISCLAIMER • ALL INFORMATION CONTAINED IN THIS PRESENTATION WAS OBTAINED AND PREPARED FROM SOURCES BELIEVED TO BE ACCURATE. THIS PRESENTATION WAS NOT PREPARED BY TRANZON VENUEBID, IT’S PRINCIPALS, AGENTS, EMPLOYEES OR CONTRACTORS. THE PURPOSE OF THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY REGARDING POTENTIAL INVESTMENT INCOME. ANY PERSON REVIEWING THIS PRESENTATION MUST INDEPENDENTLY INVESTIGATE AND CONFIRM ANY INFORMATION OR ASSUMPTIONS CONTAINED IN THIS PRESENTATION. THE SELLER, TRANZON VENUEBID, IT’S PRINCIPALS, AGENTS, EMPLOYEES AND CONTRACTORS SHALL NOT BE LIABLE FOR ANY ERRORS OR THE CORRECTNESS OF THE INFORMATION PROVIDED WITHIN. THE SELLER, TRANZON VENUEBID, IT’S PRINCIPALS, AGENTS, EMPLOYEES AND CONTRACTORS MAKE NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE ACCURACY, CORRECTNESS, COMPLETENESS, CONTENT AND MEANING OF THE INFORMATION CONTAINED HERREIN. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE CONSTRUED AS FINANCIAL OR LEGAL ADVICE. ANY DECISION TO PURCHASE OR NOT TO PURCHASE REAL PROPERTY WHICH IS THE SUBJECT OF THIS PRESENTATION IS THE SOLE AND INDEPENDENT BUSINESS DECISION OF THE REVIEWER.

  3. The Need • Unprecedented need for Affordable Housing Near Jobs • More than 150,000 people moved to Houston in the aftermath of Hurricanes Katrina and Rita in 2005 • More than 30,000 families are still on some sort of FEMA assistance. Currently DHAP handles the FEMA related Housing needs in Houston. • Many of these will ultimately be converted to Section 8 Housing Vouchers • Over 15,000 families were already on Houston’s Section 8 Housing waiting list Prior to the Hurricane Refugee increase • INCREDIBLE demand for Affordable Rentals in Locations on Bus Routes close to Job centers • THIS NEED has NOT yet been Fully Absorbed!

  4. The Solution • Meet current Market demand for Affordable Housing by building Duplexes that are construction built as Town Homes. • Build in an area Close to Great Job Growth – the Medical Center of Houston • 30,000 jobs to be added between 2008 and 2011 in the Houston Medical center Area • Build in an area poised for Re-urbanization affording investors the best potential for accelerated appreciation. • Medical center area poised to growth ( 30,000 jobs to be added over the next 36 months) at the rate the Heights of Houston did during the last 7-8 years

  5. Purpose Built Investment • The Duplexes are built to Town Home Construction Standards • This gives you 2 advantages as an investor • Each building only take up ONE of your available Spaces on your Credit Report while giving you 2 doors of Income. • When the Appreciation Market does come you can easily Convert these into 2 Town Homes with NO construction conversion allowing you Maximize the Appreciation through the sale of separate units with minimal cost.

  6. The Product • 2712 Sq. ft. Duplexes that have 2 units • Each unit has • 1356 Sq. ft. • 4 bedrooms and 2.5 baths • Stove, Refrigerator, Microwave, Dishwasher, and Washer and Dryer included • Separately fenced Back Yard • 2 inch faux wood blinds in ALL Windows • Ceiling Fans in Each Bedroom • Completely separate Utility lines from the other unit (allowing the later sale as Town Homes)

  7. Some Street-view Pictures

  8. Some Interior Pictures

  9. Flight to Value • Many Time-tested investors are selling properties in currently over valued (Deflating) markets and 1031 exchanging into positive cash flow rentals in Major cities with Great economics.

  10. Bubble Busted Now What? • Buy Positive Cash Flow investments Near expected Job Growth • Look for Cities whose Economics will perform well in Recessionary times • Energy Industry cities (Energy cost continue to rise) • World Class Medical Center areas (ever aging population of Baby-boomers need more medical care) • Houston has BOTH

  11. Income Potential • Currently the 3 different subsidized rental authorities in Houston, DHAP (FEMA housing), City of Houston Section 8, and Harris County Section 8 --- all Maximum Allowable rents for a 4 Bedroom Voucher as $1428 a month as of November 2007 as the. • The lesser of Market Rents or the Maximum Voucher amount will set the Rental amount for your units • Currently Potential Gross rents would not exceed $1428 per month per Unit on a voucher and each Duplex has 2 units. • Market rents fluctuate . • Current market average 1150-1350 a month depending on location.

  12. Conservative Today rents $1150-1250 Per Unit $2300-2500 Per Duplex Proforma As Rents Rise $1300-1425 Per Unit $2600-2850 Per Duplex Rent Income

  13. Investment returns – Example! • Purchase Price 250,000 • Loan Scenario 1 • 20% down 30 year fixed 6.5% • $1264.14 Payment • $450.00* Taxes and Insurance (*= estimated) • $1714.14 PITI • Gross rents of $2300-1714.14= $585.86 per month • Gross Rents of $2600 – 1714.14= $885.86 per

  14. $2300 Gross Rents ($585.86 gross cash flow * 12) divided by the $50,000 Down = 14% cash on cash return $2600 Gross Rents ($885.86 gross cash flow * 12) divided by the $50,000 Down = 21% cash on cash return Cash on Cash Returns – Example!

  15. Potential Tax Savings • The Following is provided for informational purposes only and is not intended as Tax or Legal advice You should check with a Qualified Tax Advisor of your choice for validity and application to you individually. • Cost Segregation • Cost segregation will allow you to amplify your depreciation of components of you residential rental properties by allowing to classify different building components of the Duplex into various 5,7,10,15, 20 and 27.5 year Schedules • Once the Cost segregation is completed you and Your CPA may Elect to use the INCREASED Section 179 deduction to take any of the 20 year or LESS depreciations in the 2008 Calendar year due to the new Stimulus Plan Enacted by Congress... • Early estimates are that this could be from 40-55% of the purchase Price of your rental Property (Est. $100K-137,500 in accelerated deductions the first year) and placed into Rental Service in 2008. • Please Verify with a Competent Licensed Tax Advisor as to the benefit you may personally receive if any.- We offer this for informational purposes only. • Perform Your Own Due Diligence.

  16. Only 11 Duplexes Available • Act Fast as we only have 11 Completed Construction unsold units out of the 65+ we have Built. • $10,000 Non Refundable Earnest Money Deposit Required. • Tremendous Demand from Investor unlock equity in Falling Markets

More Related