It’s SVN | Live Monday. This Monday we are proud to announce we have two closed deals and one featured listing. Today we featured a remarkable investment portfolio in Dallas, Texas that has the opportunity to acquire a strong stabilized cap rate in a high-demand Texas market. You won’t be able to find other #SFR opportunities like these anywhere else!
Continue reading the SVN | Live Recap to learn more about this opportunity and contact us today to submit your offer!
Each week, we present an exclusive single-family residential investment portfolio or a build-for-rent investment portfolio on SVN | Live.
In addition, SVN | Live always brings forth incredible opportunities as each week we present our featured single family residential and build-for-rent investment portfolios. We share exclusive financial information and key points of each portfolio showcased.
- 2020 ranked #9 Best-Performing City in the USA, according to Milken Institute
- Opportunity to acquire a strong stabilized cap rate in a high-demand TX market
- Majority of homes renovated to similar spec level after purchase in 2017 and 2018
- Cap ex improvements create little to no deferred maintenance for future owner
- New operator can increase current rents by over 8% to reach full market potential
- DFW achieved a 2.8% rent growth over 2019, the first time it outpaced the US norm, and is expected to hold performance over 2020
- Insurance can be decreased to one-third the current amount with a master insurance policy
- 91% of homes are 3-bedroom, statistically the most popular home among renters (JBREC)
- Only one property is currently vacant, creating low vacancy rate of 2.14%
Introducing a high performing 45 home single-family detached portfolio that is located in the Dallas-Fort Worth TX metro area, which was just recently ranked the #9 Best-Performing City in the USA, according to Milken Institute. This ranking is based on job growth, income growth, and GDP growth. Demand for homes in these areas are high and continuing to increase as DFW sets job-growth highs, according to RentRange’s recent metro report.
The high inward migration and shortage of affordable homes has continued to push home prices out-of-reach for many consumers and created a high demand for single-family rentals. This portfolio contains homes in both Dallas and Tarrant county, across the cities of Dallas, Lancaster, Mesquite, Grand Prairie, Desoto, Fort Worth, Balch Springs, Irving, Garland, and Richardson. The floorplan mix is heavy in 3 bedroom homes (91%) with square footage of all individual homes ranging from 925 to 2,471. High performing properties create a low vacancy rate of only 2.14%, creating an instant cash-flowing asset for the new investor to take advantage of.
Current management has successfully leased these homes at solid rents, but there is still opportunity to raise them by nearly 9% to reach their full operating potential at market rate. Insurance expenses can be decreased to one-third the current amount by placing a master insurance policy on the whole portfolio versus each of the individual homes, further adding to the bottom line. Majority of the homes include an attached garage and are single level. The seller purchased the bulk of the portfolio in 2017 and 2018 and renovated all homes to a similar spec level in the 24 months post-purchase, curing the package of deferred maintenance for the next owner.