Our strategy is to expedite construction and subsequently secure refinancing with a traditional long-term loan, underpinned by a stabilized valuation of $5.4 million and Month 24 expected DSCR of 1.32.
We are developing 20 modern container homes in Austin for mid-tier rentals, with a $3.32M total cost and a $5.6M stabilized value (6% cap rate). Low equity ($498K, 15%) and high leverage ($2.8M, 85%) to maximize investor returns.
Cost Efficiency & Fast Delivery
Land acquisition ($1.1M, 33%) and Bob’s Containers’ fixed pricing ensure cost certainty. Prefabricated units bypass city permits, enabling 4-month delivery and minimizing delays.
Accelerated Development Timeline
Travis County permitting and off-site fabrication compress development to 12-16 months, with lease-up by 09/2026. Aggressive pre-leasing reduces vacancy risk.
Prime Location & Strong Demand
Located in a high-growth rental market, offering $1,800/month rents (20% below city avg.). Close to I-35 & toll roads, with strong demographics and limited mid-tier supply supporting stability.
Conservative Financial Model
Assumes 90% occupancy ($337K NOI) despite Austin’s 95% multifamily avg. 20% below-market rents provide downside protection. Even at 85% occupancy, the project maintains a 1.20x DSCR and $5.63M valuation (7% cap rate).
The container home community you're developing offers 20 units, each spanning 640 square feet with 2 bedrooms and 1 bath.
Positioned at a competitive rent of $1,800 the project targets a growing demand for affordable, modern living spaces. Average rents in the area range from $2,000 to $2,500, positioning our offering below market rates.
This pricing strategy aligns with regional rental trends and positions the community as an attractive option for renters seeking affordability without compromising quality
IRR: Projected 30%+ IRR for equity investors via refinance/sale
Low Equity Requirement: 15% equity ($498K) with 85% debt ($2.8M).
Advantage: Containers delivered in 4 months; no permits with City of Austin
Market Resilience: $1,800/month rent aligns with mid-tier housing demand.
Pre-Leasing: Aggressive marketing to minimize vacancy risk.
Fixed Construction Costs: Bob’s Containers guarantees delivery timeline.
Conservative Cap Rate: 6% aligns with market comparables.
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