Hi Caroline, we spoke with a few PM's and the town has a population of about 10K and growing from expansion in larger cities, about 30 min from Austin and San Antonio. From what I have heard and asked very low crime, maybe alcohol and petty theft, nothing that would be worrisome such as homelessness or violent crimes. The new City Manager is also letting in larger companies to do business which they had refused initially to keep the small town feel.
The Project Based Voucher contract stays with the property which expires in 10 years so the rents are subsidized and lower than FMR. The program has been in place with this particular property for decades I believe, and very low turnover, less than 1% vacancy. The subsidized loan doesn't stay with the property since it's issued to the current owner but hoping that we can apply for one, but not sure if the program is still active, we need to look into it. Besides that, wonder if there are other pro's and con's, the rents are stable and no real delinquency, though under market. I was thinking this as a steady and stable play with the incoming downturn but wondering if there are other benefits to this kind of deal as the perks essentially have been used up. The CAP rate is decent and should cover the payments, and no impending capex.
