Land Development Opportunity off Katy Trail

We find a piece of land in a perfect spot just waiting for development off of highly desirable Katy Trail - no remodel needed - a breath of fresh air. A cursory look at the numbers makes it look like this could be a viable option - and great for students too.

Property on Mc Commas

We went to look at a 22 unit property advertised as a "redevelopment opportunity." Boy, was it ever! A dump of a place needing renovations galore- a dream "slum lord" opportunity is what I'd call it. His asking price is way too high for what would even cover debt service, and DCAD lists it as about half of what the owner is asking. A cursory look at the numbers reveals that the property could be a viable option IF we could buy at about half the price and just hold it as it is, only doing necessary repairs as they come up. Fortunately, the tenants seem stable - only 1 vacancy because rents are so low, and of the three buildings, one of them is mostly made up of older people who have been living there for a long time. Once the market for construction loans back, it could be a good redevelopment opportunity. Directly across the street are some beautiful "French Riviera" type condos that have been built, increasing the likelihood of something positive happening with the units on the other side in the future. The land is worth about 3 times what the buildings themselves are worth on DCAD.

Looking for Multi-Family Project close to Students

Tonight I focused on looking for multi-family housing for sale in the SMU vicinity. The "Signature Pointe" property on Lovers and Matilda would be an incredible spot (very close to SMU and near Central Market, banks, Office Depot, bookstore etc.) that's been through the economic down turn - got taken back by a bank from an owner who had planned a new high density "multi-use" zoning, which the neighboring condo owners disapproved of. Compass Bank then sold the property to Jonathan Perlman, a senior housing developer. I can not see senior housing going over well there - seniors walking to the DART rail?? - nonethless, that's what's in the works. So, on to some other property options: Mc Commas and Henderson Ave. Two multi- unit apartment blocks are for sale on Mc Commas. It's perfect for students who love the lower Greenville and M Streets area, but don't want to pay the high rents of the houses in the area. (Rents going around $600-$800.) And - a 4% cap rate seems hard to beat. I'm going to get more info, and research the pro forma numbers some more and see which property comes out on top.