Investment Property Opportunities

Houston investment property prospects, great deals, and otherwise notable property for sale in the Houston, Texas area - hand picked by local experts (that’s us - Icon Real Estate, The Woodlands)

We have an investor slot open for a pre-leased new home in the Klein ISD area of North Houston (Spring, Texas). The tenant is ready to sign a 2-year lease with an option to purchase before the end of the 24-month term. Her purchase price is estimated to be $150,000. Property and lease details below.

Property Details

  • Target Price: $130,000
  • Area: Spring / Klein (Suburban North Houston)
  • Type: New Construction Builder Inventory Home
  • Plan: 3- or 4-bed, 2-bath, 1,800+ sqft

Lease Details

  • Rent: $1,500/mo
  • Term: 2-years with Purchase Option
  • Purchase Option Price: $150,000
  • Option Fee (down payment): $2,500
  • Security Deposit: $1,500

The home will be a new construction ‘inventory’ home in the Klein School District, with a minimum price reduction of $20,000. Tenant will sign the lease and deliver the first month of rent prior to closing of the investor’s purchase.

More details on the program can be found on our Simple Rental Investments page.

Full details on this opportunity, including the tenant’s lease application package and a full financial analysis, please contact Johnny at johnny@houstonicon.com or 281.296.6226. You may also contact us through web form on our contact page.

Icon Real Estate is an independent real estate brokerage servicing the Suburban North Houston area, including The Woodlands, Spring, Conroe, and Tomball. Typical investor clients are individuals or small investment groups looking for long-term and high-equity rental acquisitions. Icon investor services include sales, leasing and property management for single-family homes, as well as general consulting, goal-setting, and education for local and out-of-state investment clients. For more information, visit Icon’s investor portal at http://www.houstonicon.com/invest/.

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Icon Realty has come across another outstanding investment opportunity for one of our investors. The subject property has a 3-year lease backed by Chevron Oil, with 2 1/2 years remaining on the lease. The home is located in the North Houston suburb of The Woodlands. Read more info about The Woodlands here and also you can view a map of the different Woodlands villages here.

The current owner of this home is marrying into money and wants to unload this property. Her loss will be your gain!

We here at Icon Realty helped the current owner put a tenant in this house when she decided to move in with her fiancé. We are also managing this property for her. We were able to find a qualified tenant for this house in 6 days at $1850 per month. We should be able to re-rent at this rate or higher once this lease expires in Oct. 2011. It is hard to dictate what the market will be like 2 1/2 years from now, but it certainly wouldn’t lease for any less than it’s current rate.

The numbers are absolutely beautiful for this property! Continue Reading »

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I was out showing a client some high end homes in a local Lake Conroe subdivision named Bentwater by Lake Conroe a week ago and came across an interesting opportunity for a lucky investor client of Icon Realty….

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Residential investors: another slam-dunk lease option investment is up for grabs. New construction home at 15% below list price, a 2-year lease signed and 1st month’s rent secured before you close, and a $23,000 profit upon the option sale after 2 years. Monthly cash flow? $350+ with 20% down.

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The following occupied 2-unit investment property will be listed for sale later this week - it’s in a great location, surrounded by primarily single-family homes in the quiet North Houston Suburb of Conroe.

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We have an opening for an investor to purchase this new construction Pulte home in the Rancho Verde community near Channelview (East Houston). Community information can be found here: Pulte - Rancho Verde Site

This home was selected by a tenant who is prepared to sign a 2-year lease at $1,500/mo, with an option to purchase the home at the end of the lease term. The option price is to-be-determined, however it will be in the range Continue Reading »

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New lease-option investment prospect in the Northcrest Village neighborhood of Northwest Houston (near Kuykendahl & FM 2920 in the Spring area). The home was built by Chesmar Homes, and has never been lived in. Learn more about new home investment property here, or read on to evaluate this prospect.

 

Northcrest Village is one of our favorite neighborhoods for new home investments — rents are high, and the neighborhood is very popular with the residents. The location is great for appreciation potential, as the nearby intersection of FM 2920 & Kuykendahl has exploded in recent years with a massive retail center. Just North on Kuykendahl you’ll find upper-end neighborhoods such as Auburn Lakes, Augusta Pines, and the new Creekside Village - the latest addition to The Woodlands.

 

Key points:

· List Price: $182,590

· Target Price: $155,000

· Monthly Rent: $1,700

· Monthly Cash-Flow @ 10% Down: $250

· Lease term: 2 years

· Projected lease-option sale price: $185,000 (to be negotiated now)

· Tenants to pay all utilities

· Home is 4-bedrooms, 2365 sqft.

· New Construction

The prospective tenants make sufficient money, and are prepared to pay the full security deposit + 1st month’s rent before the investor signs a purchase contract.

 

See below for financial details & analysis, and contact me for more information - johnny@houstonicon.com.

 

Northcrest Village Lease Option
Proposed Subject Info
Market Value $182,590   Sqft 2,365  
Target Price $155,000   Bedrooms 4  
Target Price/Value Ratio 85%   Year Built 2008  
      Price Per Sq. Ft $65.54  
Income & Expense Information        
  income     expenses  
  monthly annually   monthly annually
Gross Rent $1,700 $20,400 Taxes $375 $4,500
      Insurance $63 $750
      HOA $30 $360
      Maintenance $0 $0
Adjusted Income $1,700 $20,400 Total Fixed Expenses $468 $5,610
           
Projected Mortgage Options        
Fixed 90% LTV option Fixed 80% LTV option
Loan Type   Fixed 90% LTV Loan Type   Fixed 80% LTV
Loan Term (years)   30 Loan Term (years)   30
Loan-to-Value   90% Loan-to-Value   80%
Interest Rate   6.50% Interest Rate   6.25%
Down Payment   $15,500 Down Payment   $31,000
PMI   $100 PMI   $0
Monthly Debt Service $982 Monthly Debt Service $763
Total Monthly Expenses $1,449 Total Monthly Expenses $1,231
Estimated Closing Costs $2,790 Estimated Closing Costs $2,480
Estimated Repairs   $0 Estimated Repairs   $0
Total Acquisition Costs $18,290 Total Acquisition Costs $33,480
           
Performance          
  monthly annually      
Net Operating Income $1,233 $14,790      
GRM   7.60      
Capitalization Rate   9.54%      
           
Cash Flow Return          
  cash flow cash-on-cash return
  monthly annually 12 months 24 months 36 months
Fixed 90% LTV option $251 $3,009 16% 33% 49%
Fixed 80% LTV option $469 $5,628 17% 34% 50%
           
Projected Appreciation        
        net equity
Year percentage market value value growth (Fixed 90% LTV option) (Fixed 80% LTV option)
1 4% $189,894 $7,304 $33,663 $33,867
2 4% $197,489 $14,899 $42,922 $41,462
3 4% $205,389 $22,799 $52,597 $49,362
4 4% $213,604 $31,014 $62,382 $57,578
5 4% $222,149 $39,559 $72,754 $81,312
           
Total Net Return Projections        
    total net profit total cash-on-cash return
Year   (Fixed 90% LTV option) (Fixed 80% LTV option) (Fixed 90% LTV option) (Fixed 80% LTV option)
1   $25,278 $28,101 138% 84%
2   $37,091 $40,869 203% 122%
3   $49,301 $53,923 270% 161%
4   $70,553 $67,274 386% 201%
5   $74,471 $96,123 407% 287%
           
Definitions
Total Net Profit total net profit for the investment, determined as net follows: (net sale profit) + (aggregate cash flow)
Total Cash-on-Cash return total net profit expressed as a percentage of the total acquisition costs
Net Equity current net profit, determined as follows: (current market value) - (mortgage balance) - (acquisition costs)
GRM gross rent multiplier, determined as follows: (purchase price) / (annual gross rent)
Capitalization Rate ratio of annual net cash flow to acquisition costs    
Net Operating Income net income after operating expenses but not including debt service  
Debt Service financing expenses - principal, interest, and mortgage insurance (if applicable)

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Icon Realty has been notified of an outstanding investment opportunity here in The Woodlands, TX in the village of Sterling Ridge and within the Pepperdale subdivision. The Woodlands is a sought after, and one of the best selling master planned communities in the greater Houston area with high appreciation potential (see more information below).

 

Property Details

10 Birchwood Park - click to map

Projected market value @ 440k+

Target Price of 370k

Projected rental value of $3300 per month

3608 sqft, 4 bedrooms, on a 1/2 acre cul‐de‐sac lot, built in 2002

Near the Gary Player golf course

Minor cosmetic repairs needed @10k or less

We have the floor plan and appraisal on file. It’s from February of this year, and the value shown is $474k.

Regarding the bank’s position: We believe they’ll target $400k, based on the assumption they’ll put the value around $430k. Typically their bottom line will be 90% of their assessed value. Given they’re scheduled to foreclose inside of 30 days, We’re hoping we can get it lower (thus the $370k estimate).

 

Comparable’s

The lists below are from street-by-street searches.

Sales comps – 8/1/07 to present:

CMA Page

Buyer Full Page

Sales comps – 8/1/06 to 8/1/07:

CMA Page

Buyer Full Page

Rental comps – 8/1/07 to present:

CMA Page

Buyer Full Page

Rental comps 8 /1/06 to 8/1/07:

Subject property (10 Birchwood) was the only lease – see listing here: Buyer Full Page. The home was leased at $3,400/mo (on the market less than a week).

 

Woodlands Facts

Opened in 1974, The Woodlands is a 28,000-acre master-planned forested community. Mr. George P. Mitchell was the founder and original developer of The Woodlands

Located 27 miles North of downtown Houston on I-45, it encompasses nine residential villages.

Of the 28,000 acres in The Woodlands, nearly 6,000 acres are now devoted to green space in parks, golf courses and greenbelts. Nearly 8,000 acres will remain undeveloped green space at build-out.

More than 1,550 businesses and corporations have found a home in The Woodlands

There are 14 companies with 100,00 square feet or more located in The Woodlands. A total of 24.7 million square feet of commercial, industrial, and institutional development are here, providing jobs for more than 43,200 people.

Over 40 religious congregations also make their homes in The Woodlands.

More than 162 miles of hike and bike paths provide wooded trails between The Woodlands’ 110 parks, lakes, ponds, and 7 championship golf courses.

 

For additional financial information email Johnny Schiro at: johnny@houstonicon.com or Jeremy Larkin at: jeremy@thelarkinteam.com. Or contact us here

 

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Greetings Residential Investors:

New lease-option investment prospect for you all – this one is in the D.R. Horton community of Carpenter’s Landing. This neighborhood is on the east side of town, which is finally starting to heat up with the overflow of new oil-related jobs at the Port of Houston (see map here).

Key points:

· List Price: $140,000

· Target Price: $125,000

· Monthly Rent: $1,425

· Lease term: 2 years

· Projected lease-option sale price: $152k (to be negotiated now)

· Tenants to pay all utilities

· Home is 3/2/2, 1517 sqft.

· New Construction

The prospective tenants make sufficient money, and are prepared to pay the full security deposit + 1st month’s rent before the investor signs a purchase contract.

 

See below for financial details & analysis, and contact me for more information - johnny@houstonicon.com.

 

Proposed Subject Info
Market Value $140,000   Sqft 1,517  
Target Price $125,000   Bedrooms 3  
Target Price/Value Ratio 89%   Year Built 2008  
      Price Per Sq. Ft $82.40  
Income & Expense Information        
  income   expenses
  monthly annually   monthly annually
Gross Rent $1,425 $17,100 Taxes $292 $3,500
Vacancy Reduction at 0% $0 $0 Insurance $58 $700
Leasing Commissions $0 $0 HOA $25 $300
      Maintenance $0 $0
Adjusted Income $1,425 $17,100 Total Fixed Expenses $375 $4,500

 

 

Performance          
  monthly annually      
Net Operating Income $1,050 $12,600      
GRM   7.31      
Capitalization Rate   10.08%      
           
Cash Flow Return          
  cash flow cash-on-cash return
  monthly annually 12 months 24 months 36 months
Fixed 90% LTV option $235 $2,824 19% 38% 57%
Fixed 50% LTV option $665 $7,982 13% 25% 38%
           
Projected Appreciation          
        net equity
Year percentage market value value growth (Fixed 90% LTV option) (Fixed 50% LTV option)
1 2% $142,800 $2,800 $16,749 $17,282
2 3% $147,084 $7,084 $22,315 $21,566
3 3% $151,497 $11,497 $28,100 $25,979
4 3% $156,041 $16,041 $33,860 $30,524
5 3% $160,723 $20,723 $39,960 $84,205
           
Total Net Return Projections        
    total net profit total cash-on-cash return
Year   (Fixed 90% LTV option) (Fixed 50% LTV option) (Fixed 90% LTV option) (Fixed 50% LTV option)
1   $11,005 $16,696 75% 26%
2   $19,138 $28,706 130% 45%
3   $27,482 $40,835 186% 64%
4   $42,332 $53,090 287% 83%
5   $44,436 $114,472 301% 180%
           
Definitions
Total Net Profit total net profit for the investment, determined as net follows: (net sale profit) + (aggregate cash flow)
Total Cash-on-Cash return total net profit expressed as a percentage of the total acquisition costs
Net Equity current net profit, determined as follows: (current market value) - (mortgage balance) - (acquisition costs)
GRM gross rent multiplier, determined as follows: (purchase price) / (annual gross rent)
Capitalization Rate ratio of annual net cash flow to acquisition costs    
Net Operating Income net income after operating expenses but not including debt service
Debt Service financing expenses - principal, interest, and mortgage insurance (if applicable)
           
Tax Deductions
Year 1 2 3 4 5
Operating Expenses $4,500 $5,000 $5,500 $6,000 $6,000
Annual Depreciation $3,864 $3,864 $3,864 $3,864 $3,864
Capital Imp. Depreciation $0 $0 $0 $0 $0
Int. Paid Fixed 90% LTV $7,557 $7,474 $7,384 $7,289 $7,187
Int. Paid Fixed 50% LTV $3,886 $3,838 $3,788 $3,735 $3,678
Closing Costs Fixed 90% LTV $2,250 $0 $0 $0 $0
Closing Costs Fixed 50% LTV $1,250 $0 $0 $0 $0
Est. Tax Deduct. Fixed 90% LTV $18,171 $16,337 $16,748 $17,152 $17,050
Est. Tax Deduct. Fixed 50% LTV $13,499 $12,702 $13,152 $13,599 $13,542

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Our company has been notified of an lease option opportunity for an investor in the Dr Horton community of Imperial Green. Imperial Green is on the north side of Houston with great access to freeways click the link below for location of the subdivision relative to the Houston area.

Google Map

Subject Property Info:

1103 Lavender Shade Ct.

Builder is Dr Horton built 2008

2426 sq. ft.

Investor purchase price 153k (this includes appliances and blinds)

Tenant purchase price within 2 years 173k

Click here to view the builder’s website for the subject property

$1600 per month rent

$1600 security deposit

$5000 option deposit (should tenant not purchase the home)

I have attached a Proforma for this property (Imperial Green Proforma) based on the above assumptions. Should profit the winning investor @ 26k with nice cash flow and a cash on cash return of 12%-24% depending on when the property is purchased back. The property should require little to no maintenance considering you will have a warranty and the tenant has a vested interest in treating the property well. This is a very hands off and easy investment for the investor.

If the tenant doesn’t purchase the property then of course you get to keep the $5000 option deposit then the other lease deposits are subject to the terms of the lease. Should this tenant not go through with the purchase after the 2 years then we should be able to rent this out for @ $1450-$1500 per month.

For those of you unfamiliar with the lease option program then Click Here

Hope to speak with you very soon. If you are interested or require more information please email me at jeremy@thelarkinteam.com

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