About

<b>The Bayberry Apartments, </b>is a two story, garden-style, apartment community located in the Brookhollow submarket of Houston, Texas. The asset was built in 1966 and per HCAD, was rehabbed in 2016.  Physically partially sub metered but being charged to tenants as package “all bills paid” including water/sewer, gas, electric and pest. The utility component is shown in the utility income. Very good location just outside the 610 Loop. In the long run, may be ideal for teardown and conversion to townhomes or patio homes

The property appears to have excellent rental upside! Per owner, as of November 2023, 10 units are delinquent and a new management company has taken over.

Approximately $100,000 in Capex was previously spent on the property in 2015 and 2016. The owners added security gates, new mailboxes and landscaping. Per owner, new laundry machines were recently added.

Per Owner, the property has Certificates of Occupancy. 1 tenant has a housing voucher. On assumption, the lender may require a capex escrow and 1-2 yrs. of P&I in escrow!

The new owner says he spent an additional $5,000 – $6,000 per unit on upgrades in 2017-18. The color scheme has been dramatically changed and there are substantial interior and exterior improvements in progress. 30 units have been upgraded and receive approximately $100 more in rents and the average make ready cost is $900.  There are 15 vacant units, 2 down units that need extensive work including foundation, 4 units need heavy make-ready at approximately $6k/unit and the rest are basic make units. Make ready remodel units cost approximately $6,000 which includes floors, stove, refrigerator, counter resurface, AC and painting. There are 3 gas boilers that were replaced in 2012, the waterlines are copper and the drain lines are cast iron. There is no chiller, HVAC units only and the plumbing is old.

Water conservation is in progress.  <i>Per</i><i> owner, t</i><i>he October Water/Sewer expense of $9,367 is higher than normal due to a meter leak on Oak St.</i>

Once the property stabilizes, rental increases should be available. A 2-bedroom unit was recently converted to an efficiency and the new office. Secondary income includes a laundry facility, reserved parking at $25/month, covered parking spaces for $35/month and pet fees for $15/month.

Covered Spaces $35/mo.  Pet Fee $15/mo.