1104 W 3rd St 17 Unit Apartment Building $990,000 ($58,235/Unit) 10.50% Cap Rate Big Spring, TX 79720

Just appraised for $1,190,000! Strong Cash Flow: Currently generating ~$11,000/month in gross rental income with minimal overhead. Management fees are 10%, and monthly expenses are approximately $1,200 — resulting in a healthy 10.5% cap rate at asking price. Building has been completely renovated in 2024!! Value add since 4-5 units are typically vacant. Management could improve this immensely.
Value-Add Potential:There is a great demand for units in this area, and new management would help with this. 17 Units spread across 4 buildings and 1 single Family house.
Strategic Market: Located in Big Spring — a West Texas hub for energy, logistics, and industrial activity — the property benefits from demand drivers including pipeline and construction crews, nurses, and regional workers.
Workforce Housing Alternative to Man Camps: With two new man camps recently introduced to the area (offering $100/night + meals), this property presents a prime opportunity to compete by offering long-term stays with optional meal services. Operator has explored food truck and vending options to drive rent premiums and occupancy.
Upside Scenarios
Optional Meal Service: Introducing a meal plan could increase rents or generate additional revenue streams. Meal vending and onsite commissary options under exploration.
Furnished Rentals: Furnishing units could enable per-bed rentals for transient workers at higher rates.
Buyer commits to having the roof replaced with metal before property sells.