Property & Houses in Gorgeous Deep East Texas
Property Description:
- 41 acres next to a river (creek) with a pond
- 1 Main House (5600 sq ft)
- 5 Cottages (600 - 1200 sq ft)
- 1 Efficiency
THE STORY:
We bought this property currently known as Welcome Hall in 2019. It was run down and uncared for but is quite famous in the area since it is the oldest house in Deep East Texas (built in the mid to late 1800's). As we started to clean up, we literally found these adorable cottages as we cut down the 15' weeds!
Covid hit and we weren't sure what to do with this village property. Covid passed and we decided now might be the right time to try renting. We rehabbed the first cottage (Beachy Keen) and listed it on AirBnb. We didn't think too many people would be interested since we're in the middle of nowhere - we were wrong. We had our first client within 12 hours and it stayed booked from then on with a gross income of about $1200/mo. Within 3 months, we had a full time renter @ $1200/mo greatly reducing the expenses and increasing the net income.
We had a winner! Time to do the second cottage . . .
The second cottage, The OK Corral, is almost finished. That will rent, whether AirBnb or traditional, for a little more than Beachy Keen. (Yes, all the houses have themes . . . : )
But, there are still 3 more cottages and an efficiency to rehab and rent!
So, we did what every good rehabber does . . . We called the bank to get a $200k loan to finish rehabbing the houses. We found out the hard way that this property will not qualify for for either a conforming or nonconforming loan due to one of the following 2 factors:
- Our primary residence is in the main house
- There are more than 4 residences with the same address.
Shocking - I know.
BOTTOM LINE:
Loan Amount: $200,000
Loan Term: 7 - 10 years
Interest Rate: 7%
Current Value of Property: Approx. $1M
Current Value After Rehab: Approx. $1.6M
Total Projected Rental Income After Rehab/mo: $5200 - $6200
Current Lien: $72,281
Purpose of Loan:
Pay off current lien: $72,281
Rehab Casa Chaquita: $10,000 - projected revenue $900/mo
Rehab Reel 'Em Inn: $15,000 - projected revenue $800/mo
Rehab The Chapel: $10,000 - projected revenue $700/mo
Rehab "Move": $60,000 - projected revenue $1600/mo
Add AC to Beachy: $ 2,000 - current revenue $1200/mo
Property Improv. $10,000
GOOD TO KNOW:
- Own the mineral rites for the 41 acres (that's a good thing in TX!)
- Only debt is the current lien - paying off the lien puts your loan in first position
- Credit score of 800+
- 10 minutes from largest lake in TX (well-know for it's fish)
- Animals like horses, Wilbur the Pig, fresh eggs from pasture chickens, etc seem to make this a very cool destination place
- 5 star rating, Super Host on Airbnb
- Background in rehabbing (last house to rehab before this property: 19411 Lauzon Ave, Port Charlotte, FL 33948)
I realize this is a small deal, but it's a good deal! Your loan would be secure with $1M worth of property that also produces rental income - SLAM DUNK!
: )
Thank you!
Anita
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