Buy Hold Investment Strategy in Houston, TX
Neighborhood: Energy Corridor

Business Case: Buy-Hold Strategy on Single Family Home

This single-family home (SFH) was built 1971 with 3-bedrooms, 2-bathrooms and is located in the Energy Corridor in Houston, TX. This rental asset typically attracts young couple with small daycare age kids due to the proximity to work centers and family amenities. The tenant base in this area is Class B and fairly stable. This property has only seen three different tenants during the hold period. The asset was lightly renovated over hold period in order to increase desirability, no value-add renovations were performed.

Property Overview

Location – Energy Corridor in Houston, TX
Strategy – Buy-Hold
Date Acquired – March 2014
Date Resold – May 2018
The real estate market was generally Flat Market during hold period.

Investment Metrics

(Net of Fees)​

Acquisition Price – $195k
Loan Type – Conventional 20% down
Resale Price – $265k
Hold Time – 4yrs 2mos
Equity Multiple 3.15x
Avg. Yearly Appreciation 8.9%
Avg. Vacancy 2%
Avg. CAPEX & Maintenance 3.5%
Management Fee 10%
Avg. Cash-on-cash return 8.8%

Ben Plouvier

Manging Broker, HNB Realty
10497 Town and Country Way, Ste 700,
Houston, TX, 77024
Office: (281) 201-3710 I Mobile: (713) 410-0709

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