FORCED APPRECIATION PLAY: HIGH-EQUITY BUNGALOW IN GROWTH CORRIDOR

═══════════════════════════════════════════════════════════════

THE OPPORTUNITY:

A classic 1957 brick veneer home on a massive 7,500 sqft corner lot in Mesquite’s

desirable Lakeside subdivision. This property is part of a 36-unit portfolio liquidation by BCL Real

Estate LLC, a sophisticated operator with $12.4M in total equity.

THE OWNER’S POSITION:

• 100% Equity (Free & Clear) - No mortgage encumbrance

• Absentee owner seeking portfolio simplification

• Previously listed on MLS at $289k (Expired after 90 days)

• Motivated to close before Q1 tax deadline

THE NUMBERS (Pro Forma Analysis):

💰 Purchase Price: $260,000

🔨 Renovation Budget: $25,000 (Cosmetic refresh)

📊 Total Investment: $285,000

📈 ARV (After Repair Value): $308,565

✨ Instant Equity: $23,565 (Day 1 Spread)

💵 Market Rent: $1950/month

📉 Pro Forma NOI: $15,210/year (65% NOI margin)

🎯 Cap Rate: 5.85%

💎 Cash-on-Cash Return: 1.85% (25% down scenario)

PROPERTY CONDITION:

• Classification: “Tired Landlord Special”

• Structure: Solid (Brick veneer, Pier & Beam foundation)

• Systems: Central HVAC functional, updated within last 10 years

• Cosmetic Needs: Interior paint, flooring refresh, kitchen/bath modernization

• Exterior: Good bones, minor landscaping enhancement recommended

VALUE-ADD STRATEGY ($25k Budget):

1. Interior Refresh ($15k): Paint, vinyl plank flooring, modern light fixtures


2. Kitchen/Bath Update ($8k): Granite countertops, cabinet hardware, fixtures


3. Curb Appeal ($2k): Front landscaping, exterior touch-up

WHY THIS FAILED ON MLS:

The previous listing agent priced at $289k targeting retail buyers seeking “move-in ready.” This is

NOT a retail play—it’s an investor value-add opportunity. Retail buyers want perfection; sophisticated

investors see the $23k equity spread and the forced appreciation lever.

LYNC SCORE: 66/100

• Deal Structure: 26/35 (High motivation, clean title)

• Yield Potential: 16/35 (Strong cash flow + appreciation)

• Cross-Border Fit: 24/30 (TX tax advantage, liquid market)

IDEAL BUYER PROFILE:

✓ All-cash buyer or access to hard money

✓ Comfortable managing light value-add renovation

✓ Seeking 1-2 year hold for forced appreciation

✓ Alternative: Long-term rental (strong cash flow fundamentals)

CONTACT FOR DEAL DOSSIER:

This listing includes a comprehensive 1-page Investment Memorandum with detailed comps,

renovation scope, and vendor recommendations. Available in English and Arabic.