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Leveling up

It has been a busy last few weeks. The Pilgrim rehab is almost finished! We are days away from completing the project, finding renters, and evaluating the final numbers for the project. At the same time, we decided to go forward with our Central duplex purchase in Corpus Christi (which closes on Monday) and we began identifying investors for a possible 36 unit apartment purchase in Bryan, Tx just outside of College Station (home of Texas A&M University). There's a bunch happening but let's start with Pilgrim progress. Here are a few of the latest progress pictures:

Completed Work:

• Front exterior complete; living room window installed and trim complete

• Completed appliance install and backsplash--Kitchen is complete

• Installed Master Bathroom vanity, toilet, and floor to ceiling subway tile

• Installed Master Closet flooring and shelves

• Installed air conditioning unit

Major To Do Items:

• Complete paint and finishes in hallway bathroom

• Demolish 2-story storage unit

• Minor landscaping upgrades

cENTRAL

We close on the Central duplex in Corpus Christi, TX on Monday, 29 Mar. She isn't the prettiest property but we expect her to cash flow well so we're glad to have her. We completed a general inspection as well as a termite and hydrostatic (plumbing) inspection. The bad news is that we'll have some foundation, exterior, and termites to deal with. The good news is we were able to convince the seller to drop the price $11K to $139K. The 1,200 sq foot duplex has two tenants each paying $900 per month (which includes utilities). Eventually, we'll seek to move the utilities to a tenant responsibility but the property still makes good sense.

We'll make the initial purchase with cash but shopped around for financing and will be getting a 30 year commercial loan at 80% LTV. We should close on that loan within a few weeks of closing on the property which will allow us to get a good deal of our cash back for other opportunities. We also found a great insurance agent we are very happy with.

36-Unit in Bryan, TX

The play here is that they could get the property at a relative discount based on their experience and broker relationship and then increase value of the property through eventual shift of the utility responsibility onto the tenants. The property is in Bryan, TX--just 7 minutes away from the heart of Texas A&M university. The syndication team has a lot of irons in the fire so we're considering whether to accomplish as a joint venture or for us to possibly go it alone--regardless of outcome, we're excited to have progressed to point where purchasing a 34-unit complex is a real discussion we're having. Level up!

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