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Houston Income Properties, Inc. 2635 Tim St., Houston, TX 77093 Phone: 713.783.6262 License #0393404 | hipapt.com 84 UNITS IN 60 BUILDINGS Houston Income Properties, Inc. Phone: 713.783.6262 License #0393404 | hipapt.com EXCLUSIVE OFFERING: La Casita Homes and Duplexes | 2635 Tim St. | Houston, TX 77093 LISTING BROKER: Houston Income Properties, Inc. | 713.783.6262 | Peter Huang - Sr. Sales Associate - Agent Offer Date: To Be Determined Offering Process: The Property is being offered on an "All Cash" basis to qualified purchasers. Offer Guidelines: Offers should be presented in the form of a non-binding Letter-of-Intent and must include at least: ·Offer Price ·Earnest Money Deposit Amount ·Feasibility Period ·Closing Date ·Description of Equity Source ·Other terms and conditions particular to the buyer’s investment process Site Visits: All Site Visits are to be set up through the Listing Broker. All requests for additional information are to be made through the broker—713-783-6262 Disclaimer: The offering is subject to the Disclaimer contained herein. Houston Income Properties, Inc. 3201 Garth, Baytown, TX Principals andPhone: their 713.783.6262 representatives shall please refrain from contacting any onsite personnel or residents. License #0393404 | hipapt.com 56 Unit Luxury Apartment Community Table of Contents 04 10 14 24 30 46 OFFERING FINANCIAL PROPERTY MARKET LOCATION LEGAL OVERVIEW ANALYSIS OVERVIEW OVERVIEW OVERVIEW Offering Overview La Casita Homes - Page 4 of 48 Offering Summary PROPERTY DESCRIPTION INVESTMENT PROFILE Name: La Casita Homes and Duplexes Type of Sale: "All Cash" - Buyer to acquire a new Loan Address: 2635 Tim St. ASKING PRICE: No Official Asking Price City / State: Houston, Texas 77093 Current NOI: $425,084 For Current and Projected NOI see analysis in PLEASE DO NOT VISIT THE PROPERTY WITHOUT Projected NOI: $489,126 the financial section MAKING AN APPOINTMENT THROUGH THE BROKER. Property Type: Single Story Homes and Duplexes Current Occupancy: 95% Per the 9-3-2019 RR No. of Buildings: 60 Utility Rebill: None Year Built / Rehab 1964 / 2017-19 Primary Market Area: Houston Materials: Brick and Siding Sub-Market Area: North Loop East Number of Units: 84 Scheduled Market Rent: $68,920 / Mth Total Rentable SF: 64,600 Avg. Rent / Unit: $820 Avg. Unit Size: 769 S.F. Avg. Rent / SF: $1.07 INVESTMENT HIGHLIGHTS: 1) A small 84 unit home and duplex community that is 95% occupied and is maintaining a high occupancy post recent interior upgrades. It is conveniently located approximately 2 and a half miles outside Loop 610 N. The La Casita Home and Duplex Community is located less than a mile from grocery retailers, shopping centers and restaurants. The immediate area has a diverse population with a major Hispanic influence. La Casita Homes was constructed in 1964 and the owner has renovated the majority of the units and has completed some exterior improvements. The interior improvements include; painting, new cabinetry, updates to the bathrooms and kitchens, new flooring and new appliances. Some of the exterior improvements performed include; some improvements to drainage, some brick and concrete replacement, some breaker box replacement, some wall painting and some roof replacement / repair. 2) Located near major employment centers in Houston with ease of access to the many businesses up and down the I-45 corridor as well as Beltway 8, Hardy Toll Rd, Hwy-59 and Loop 610 N. The Pinto Business Park, a 971 acre industrial park that has become home to more than 4 million square feet of industrial and logistics users since 2013, is less than 7 miles from the property. The park is the new home of the Amazon Distribution Center as well as many other major employers such as Sysco, Grocers Supply, Alfa Laval, Cambria, Red Bull and many others. Downtown Houston is approximately 6 miles southwest of the property and the Metro Red Line (train) is only 2.3 miles southwest and commutes to Downtown and the University of Houston. 3) The property is individually metered for Electricity and master metered for Gas and Water. Each unit has its own gas hot water heater. 4) There seems to be upside in the rents with further improvements to the interiors of the units and to the exterior of the property. There is no RUBS in place for Water or Gas, a new owner may find additional income by implementing a RUBS for both Water and Gas. HIP / NAA - Page 5 of 48 Property Information PRICING INFORMATION PROPERTY INFORMATION UNIT MIX - CURRENT MARKET RENTS (please verify) Units: 84 No Official Asking Price Avg. Size Unit: 769 S.F. UNIT TOTAL RENT / TOTAL RENT #UNITS NOTES SQ. FT. Year Built (Per CAD): 1964 / 2017-19 TYPE SQ. FT. UNIT RENT PER SF Electric & Gas Mtr: Individual 1 EFF Storage 600 600 $680 $680 $1.13 Please do not visit the property without Roof: Pitched 48 2-1 Duplex 750 36,000 $780 $37,440 $1.04 an appointment made through the broker! Land (Acres) Per Survey: 4.1346 35 2-1 House 800 28,000 $880 $30,800 $1.10 Rentable Sq. Ft: 64,600 Estimated Total Collections ~ (Occupancy is {95%} as of 9-3-2019 Rent Roll) Mth. Aug 19 - T-3 Avg Aug-2019 Jul-2019 Jun-2019 May-2019 Coll. $62,110 $61,835 $63,210 $61,286 $62,978 84 95% 769 64,600 $820$68,920 $1.07 TOTAL AVG. TOTAL SQ. AVG. AVG. Occupancy TOTAL RENT UNITS SQ. FT. FT. RENT/U RENT/SF UNIT MIX STATS 57% 57% By Unit Type By Sq. Ft. 1% 1% 42% 42% 1-1 2-1 Duplex 2-1 Home 600 750 800 La Casita Homes - Page 6 of 48 Property Information PROPERTY TAX PROPERTY HIGHLIGHTS HCAD# 0470430000020 1.) Property is being offered on "All Cash" - buyer to acquire new loan Taxing Entity | Rate/$100 of Value 2.) Upside potential with continued interior and exterior upgrades Houston ISD 1.2067 3.) There is no Utility Rebill in place - a new owner could charge back Water, Trash and Harris County 0.62362 Gas for additional Income. Port of Houston 0.01155 4.) Major employers in Houston are within a few miles of the property Houston Comm College 0.100263 5.) The location of La Casita puts it within minutes of IH-59, Hardy Toll Rd, 610 N Loop, City of Houston 0.58831 Tidwell Rd, I-45, Aldine Westfield, Jensen Dr., all of which are major transportation NRTHSD Mgmt Dist. 0 arteries in the area. 2018 Tax Rate 2.530443 6.) The property is within walking distance of primary and secondary schools. In addition it 2019 Assmt. $2,965,854 is a short commute (2.3 miles) to the Metro Red Line (mass transit train traveling to Approx. Total Tax $75,049 7.) The property is a duplex and single home community. Most duplex and home communities retain higher than average occupancies and rents when compared with the CONSTRUCTION FEATURES same age/condition Garden Style apartment communities. Yr. Built / Rehab Date: 1964 / 2017-19 Electric Meter: Individual Meter - Tenant Pays Utility Bill Back: None Gas & Water Meter: Master Metered A/C / Heat Type: Window Units for Duplexes - Central HVAC for Homes Hot Water: Individual Gas Hot Water Heaters Roof: Pitched Paving: Asphaltic Concrete Exterior Construction: Brick and Siding No. of Total Buildings: 60 # of Stories: Single Story Homes and Duplexes Units / Acre: 20 Parking: 154 Open Spaces Total , (Homes have two spaces each or 70 total included in rent), (8 reserved spaces for $30/mth Duplex or Home) (Duplexes include one space each = 48 spaces, with 12 additional spaces for 2nd car available at $10 extra/month) (12 visitor spots and 4 office spots) HIP - Page 7 of 48 Location Map La Casita Homes - Page 8 of 48 HIP - Page 9 of 48 Financial Analysis La Casita Homes - Page 10 of 48 Actual and Pro Forma Analysis ASKING PRICE INCOME (See Details on the left) ACTUAL STABILIZED PRO FORMA Gross Scheduled Rent is {Current Rent} Annualized + {5%} Incr. N/A $868,392 $72,366 / Mo MARKET TO DETERMINE THE PRICE (Loss)/Gain to Lease - Pro Forma Estimated at {1%} of GSR N/A (8,684) 1% Estimated Annual Gross Potential Rental Income N/A 859,708 99% Vacancy Loss - Pro Forma Estimated at {5%} of GSR N/A ($43,420) 5% INCOME DETAILS Non-Revenue Units - Pro Forma is Estimated at {1%} GSR N/A (8,684) 1.00% Current Scheduled Rents (CSR) as of 9-26-2019 Other Losses - Pro Forma is Estimated at {1%} GSR N/A (8,684) 1.00% $68,920 / Mo $820 / Unit $1.07 / S.F. Total Annual Rental Income 798,921 {92%} of GSR Actual Income Used Aug 19 - T-3 Avg $62,110 Total Other Income - Pro Forma includes bill back for water, gas and trash expense 46,200 $550 / Unit / Yr Actual Income Used "Annualized" $745,324 Total Gross Annual Income 745,324 $62,110 / Mo 845,121 $70,427 / Mo Leased Occupancy Per the 9-3-2019 RR 95% Pro forma Scheduled Rents include a {5%} Rent Increase $72,366 / Mo $862 / Unit $1.12 / S.F. EXPENSES (See Details on the Left) Per Seller's Aug T-8 with Budget STABILIZED PRO FORMA Pro Forma Rents are Post Upgrades and Stabilization Fixed Expenses Property Taxes (See Details on the left) $75,049 $893 per Unit $101,218 $1,205 per Unit PROPERTY TAX DETAILS Franchise Tax $0 $ per Unit $0 $ per Unit 2018 Tax Rate Actual 2.530443% Property Insurance 30,000 $357 per Unit 30,000 $357 per Unit 2019 Assmt. Actual $2,965,854 Total Fixed Expenses 105,049 $1,251 per Unit 131,218 $1,562 per Unit Pro forma Rate Used 2018 Tax Rate 2.530443% Pro Forma Estimated Post Sale Assmt.