Christian Osgood bought a 44-unit low-income housing building in Stephenville for $1.8 million with no money down using tax credits. The property is nearly full with tenants, has a gym and clubhouse, and he's planning $5,000-per-unit annual renovations to cut property taxes in half under a Texas incentive.
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All right, I owe you guys a quick YouTube video. So we're back at the 44-unit building. If you guys want to see this or haven't seen this since we closed it, we closed this bad boy, $0 out of pocket. Everything except for landscaping is going really well. Apparently we fired the landscaping company, no one communicated with each other on that, so— oh, we got weeds everywhere. We are fixing that. Other than that, this thing's going beautifully. We have tenants who are happy to be here paying rent. We got automatic locks installed in the clubhouse. Well, I don't have a link for these companies called DD Lock. It's awesome. Take us out the front door here, but we have these all automated on my phone, so whenever a contractor needs to be here, the retirees want to do bingo night or Bible study, and it's all in here. Other than that, project is on schedule and doing well. We just leased up one of the, one of the vacants. We have two more to go, and then we're 100% occupied on 44 units. That's amazing. There you go, details of the deal. We bought this beauty for $1.8 million. If you guys are thinking that sounds like a really good price, because it is. We did a good job negotiating this, which is why it was so easy to raise the capital, put together this whole deal fairly quickly. It is LIHTC, so we actually had to get government approved to be able to do projects like this. It's a long process. It's about 60, 70 days of audit. You need some experience to buy this type of property. But I mean, seriously, just look how nice the buildings are looking. Absolutely gorgeous. It's fun having an office space here in Stephenville so we can manage here in the surrounding areas. I'll show you guys what I'm talking about. The weeds, though. Look at this. Light. Talk about slumlords. Gross. Yeah, we'll fix that. I apologize if any of our wonderful residents are watching this. I do apologize. Other than that, looking good. Trees need to be trimmed up a little bit. Tenants are happy. Gardens are doing well. The lawn's doing too well. Again, fixing that. Renovation project in process. We just got a fence quoted for the back. We're also looking at how we want to install carports. If you guys want to take a look at the parking, any suggestions, drop in the chat. There's a few different designs for covered parking, but interestingly, in Texas, you can get 50% off property taxes on these low-income properties if you agree to spend $5,000 per unit every year. On renovations. So that includes any renovation, doesn't have to be in each individual unit, interior or exterior. But what would you guys do? Carports will eat up a good deal of that, fencing will eat up some of that. We got 44 units we gotta spend $5,000 on, and the campus looks like this. Curious your thoughts below, let me know in the comments. Uh, guys, this is a deal when fully stabilized. This is worth $5-6 million, off a million too. If you're looking for opportunities like this, Learn subsidized housing, Section 8, Section 42. There are a lot of opportunities if you spend a little extra time and a little extra effort learning how to manage it. The best manager makes the most money. We made the first million dollars on the buy, we're gonna make the second $2 million on the correct operations management of this property, taking it to the next level. We got on-site laundry, we got in-unit laundry as well, a clubhouse, a small little gym, a bingo hall, PM, on-site leasing office, paved parking. For those who have called us slumlords, screw you. This is the stuff I own. I have slummy lawns, beautiful properties. Nah, just kidding. Haters, keep the comments coming. I appreciate them. They boost our videos, and we value your input. So tell me all the things you hate about this property. Tell me all the things you love about the property. Give me suggestions below. We'll see you guys all in the next episode.
