BROKER'S OPINION OF VALUE

www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027

A 80 Unit ● Class C ● Multi-Family Asset

2735 FRANKLIN STREET, BEAUMONT, TX 77701

2735 FRANKLIN STREET, BEAUMONT, TX 77701APARTMENTS FOR SALE

PRICE/UNIT: $26,250PRICE/SF: $48.10

Units: 4 TERMS: ALL CASHAvg Size: 546 PRO-FORMA CAP RATE: 13.37%Date Built: 1962Rentable Sq. Ft.: 2,183Acreage: 0.15Occupancy: 100%Class: C-

SALIENT FACTS:

♦ Available on an All Cash Basis only! ♦ Beaumont is Located 90 Miles East of Houston and 25

♦ Located in Beaumont, TX Miles West of Louisiana♦ Strong blue collar profile ♦ Area Plants are Booming♦ Value add potential ♦ Motivated Seller!

$105,000

For More Information Please Contact:

Tom Wilkinsontwilk4@ketent.com

713-355-4646 ext 102

1770 St. James Place Suite 382Houston, TX 77056

www.ketent.com

2735 FRANKLIN STREET, BEAUMONT, TX 77701

Asking Price Est Mkt Rent (Mar-20)Price Per Unit Amortization (months) Est Avg MoPrice Per Sq. Ft. Debt ServiceStabilized NOI Monthly P & I

Interest RateDate Due

Water Meter / Master Master Est Res for Repl/Unit/YrYield Maintenance

Pitched

PRO-FORMA INCOMECurrent Street Rent with a 50% Increase $2,175 / MoEstimated Gross Scheduled Income $2,175 / MoEstimated Loss to Lease (2% of Total Street Rent) 2%Estimated Vacancy (2% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%Estimated Utilities IncomeEstimated Other Income $200 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $2,111 / Mo

Estimated 2020 Income

Fixed Expenses2019 Tax Rate & Future Assessment

Estimated

$461 per Unit $461 per Unit

Gas

Total Utilities $480 per Unit $480 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 10.00% $435 per Unit 10.00% $633 per UnitTotal Other Expense $1,435 per Unit $1,633 per Unit

Total Operating Expense $2,376 per Unit $2,575 per Unit

Reserve for Replacement $250 per Unit $250 per Unit

Total Expense $2,626 per Unit $2,825 per Unit

Net Operating Income (Actual Underwriting)

Asking Price "As-Is" Price "All In" Price

Cap RateProposed DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash

73,50031,500

$445

Estimated 2020 Expenses

$1,400$350 per Unit$1,400$445 2020 Tax Rate & 2020 Assessment

$480 per Unit

$111 per Unit$350 per Unit

2,810

6,895

1,000

Estimated Utilities

$0 $ per Unit

$0 $ per Unit

$ per Unit$0$ per Unit

$2,533

1,920Trash

Water & Trash

$ per Unit

Date Built

$ per Unit

UtilitiesTotal Fixed Expense

UtilitiesElectricity $ per Unit$0

1,845

$1,920

INCOME

$111 per UnitTaxes

EXPENSE$17,400

Fixed Expenses

Insurance

2.72636Tax Rate (2020)

Est Future Taxes @ 80%

25,334

$16,313

$16,313Est 2020 Taxes

$ per Unit

9,505

$ per Unit

Other Expenses

$1,000 per Unit$ per Unit

$4,000

$480 per Unit

$ per Unit$0

Estimated Other Expenses

MODIFIED ACTUALS

$0$ per Unit

5,740

1,845

(522)

Operating Information

NOTES: ACTUALS: Income and Expenses areestimated. Taxes are based on the 2020 Tax Rate & 2020 Assessment. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2019 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 10.% of Gross Income, Other expenses are Estimated for the Pro Forma.

10,505

1,920

$1,920

100%

2%

$350$4,085

360

$340

$300

3.75%

2020 Tax Assessment$445

26,100

Est Ins per Unit per Yr

$1,450$1,450

10 Yrs

Yes

Property Tax Information

Net Rentable Area

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your responsibility toindependently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULDCAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right towithdraw this listing or change the price at anytime without notice during the marketing period.

31.59%

$0

31,500

$0

$1,740$0

8.92%

$4,000$0

73,500

4,085

$1,000 per Unit

105,000105,0006.57%

10,298

14,03611,298

6,533

1,000

9,951

13.37%

4,085

Physical Occ (Mar-20)2,1830.15Land Area (Acres) $14,036

1962

Indiv

Units per Acre

Elec MeterRoof Style

Proposed Loan Parameters

$26,250

A/C Type: Window Units

Physical Information

Number of Units

$48.10

New Loan @ 70% of Asking

26.810

Avg Unit Size

Financial Information

4546

$73,500$105,000

800

(522)0 $ / Unit / Yr

Estimated Fixed Expenses

Estimated Expenses

(522)

$445

PRO-FORMA

26,100

25,334

Est Future Tax Assessment

8/13/2020 FranklinFourplex

PROPERTY OVERVIEW2735 FRANKLIN STREET, BEAUMONT, TX 77701 Keymap:

Construction Quality: C-

Age: 1962 Cable Ready Park & Ride Nearby Mortgage BalanceElec Meter: Indiv Mini Blinds Walk-In Closets Amortization Beaumont ISD $1.224050A/C Type: Window Units Ceiling Fans School Bus Pick-up P & I City of Beaumont $0.710000Water: Master Shuttle Route Type Port of Beaumont $0.114674Plumbing: Copper? Patios/Balconies Assumable Sabine Neches Nav Dist $0.092067Roof: Pitched Monthly Escrow Drainage Dist #6 $0.220587Paving: Concrete Origination Date Jefferson County $0.364977Materials: Brick/Wood Due Date# of Stories: 1 Interest RateParking: OpenBuildings: 3 Yield Maintenance 2020 Tax Rate/$100 $2.726355Units/Acre: 26.81 Transfer Fee 2020 Tax Assessment $16,313

*In Select Units

Est Avg Mo 1,450$

Jan 2020 12 Mo Avg #DIV/0!Feb 2020Mar 2020Apr 2020 9 Mo Avg #DIV/0!May 2020June 2020July 2020 6 Mo Avg #DIV/0!Aug 2020Sept 2020Oct 2020 3 Mo Avg #DIV/0!Nov 2020Dec 2020

ACCT NO: 17191,17192,17193,17194AMENITIESPROPERTY INFORMATION TAXING AUTHORITY - JEFFERSON COUNTYEXISTING MORTGAGE

COLLECTIONS

PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.

PROPERTY HIGHLIGHTS

$-

$0

$0

$1

$1

$1

$1

The 2735 Franklin St Duplex is located in Beaumont, Texas. The asset was built in 1962. The previous owner reports a installing a new roof approximately 15 years ago. Window units are used to provide A/C. The property stays fully occupied and rents are very low. The owner believes a $60K rehab could push rents to $600-$700 per unit each month (this would be what Housing pays).

Blue collar profile, ideal for a small investor to own as a starter investment!

IMPORTANT: Seller desires to sell to an ALL CASH buyer! Per the owner, the property is not located in the 100 year flood plain.

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KETEnterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legaland tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerningenvironmental issues, if any.

2735 FRANKLIN STREET, BEAUMONT, TX 77701

2735 FRANKLIN STREET, BEAUMONT, TX 77701 Unit Mix

Type No. Units Sq Ft Total SqFt Current

Rent Total Rent Rent/SF

1 Bed/1 Bath 1 475 475 $375 $375 $0.791 Bed/1 Bath 1 475 475 $350 $350 $0.741 Bed/1 Bath 1 635 635 $375 $375 $0.591 Bed/1 Bath 1 598 598 $350 $350 $0.59

4 546 2,183 $363 $1,450 $0.66

Note: Owner thinks the rents can be pushed to $650 - $700 with a rehab! Source: Owner's 7-20 Rent Roll

UNIT MIX

TOTALS AND AVERAGES Total Units

Average Sq. Ft.

Total Sq. Feet

Average Rent/Unit Total Rent Average Rent/ SF

Unit

2735272727452747

2735 FRANKLIN STREET, BEAUMONT, TX 77701

PROPERTY LOCATION2735 FRANKLIN STREET, BEAUMONT, TX 77701

RENT COMPARABLES2735 FRANKLIN STREET, BEAUMONT, TX 77701

1 2216 McFaddin St

2 2225 Calder Ave

3 520 Magazine St

4 2535 Coast St

Totals/Averages Comps 1980 631 $620 $0.982Franklin Fourplex2735 Franklin St

RENT COMPARABLES (Property Owner)

1.016

1978 685 $675 0.985

1985 640 $650

P/SF

1.0001983

$0.664

500 $500

1962 100% 4 546 $363

1975 700 $650 0.929

Property Name Yr Blt Avg Size Avg Rent

321

4

The economy of Beaumont-Port Arthur, TX Metro Area employs 173,900 people. The economy of Beaumont-Port Arthur, TX Metro Area isspecialized in Mining, Quarrying, Oil, Gas Extraction; Construction; and Utilities, which employs respectively 2.89; 1.82; and 1.46 times morepeople than what would be expected in a location of this size.

The largest industries in Beaumont-Port Arthur, TX Metro Area are Healthcare & Social Assistance (21,151), Manufacturing (20,933), and Retailtrade (20,415), and the highest paying industries are Management of Companies & Enterprises ($74,911), Utilities ($53,155), and Mining,Quarrying, Oil, Gas Extraction ($51,230).

Median household income in Beaumont-Port Arthur, TX Metro Area is $49,364.

The Beaumont-Port Arthur, TX Metro Area has a population of 409,901 people with a median age of 36.7 and a median household incomeof $49,364.

Between 2015 and 2016 the population of Beaumont-Port Arthur, TX Metro Area grew from 408,216 to 409,901, a 0.41% increase and its medianhousehold income declined from $49,787 to $49,364, a 0.85% decrease.

The population of Beaumont-Port Arthur, TX Metro Area is 56.9% White, 24.3% Black, and 14.8% Hispanic. 15.6% of the people in Beaumont-PortArthur, TX Metro Area speak a non-English language, and 94.4%are U.S. citizens.The largest universities in Beaumont-Port Arthur, TX Metro Area are Lamar University, with 3,775graduates, Lamar State College-Port Arthur,with 641graduates, and Lamar State College-Orange, with 530 graduates.

The median property value in Beaumont-Port Arthur, TX Metro Area is $107,800, and the homeownership rate is 65.6%.Most people in Beaumont-Port Arthur, TX Metro Area commute by Drove Alone, and the average commute time is 22.4 minutes. The averagecar ownership in Beaumont-Port Arthur, TX Metro Area is 2 cars per household.

Beaumont-Port Arthur, TX Metro Area is a metropolitan statistical area containing Jefferson County, TX; Orange County,TX; and Hardin County,TX and the census places Beaumont, TX; Port Arthur, TX; and Orange, TX.

BEAUMONT-PORT ARTHUR, TX METRO AREA

2735 FRANKLIN STREET, BEAUMONT, TX 77701

DEMOGRAPHICS

1 Mile Radius 2 Mile Radius 3 Mile Radius

2020 Estimated Population 8,825 28,071 47,1712025 Projected Population 9,023 28,222 46,7612010 Census Population 9,404 28,539 48,1302000 Census Population 10,334 31,815 50,144

Projected Annual Growth 2020 to 2025 0.4% 0.1% -0.2%Historical Annual Growth 2000 to 2020 -0.7% -0.6% -0.3%

2020 Median Age 35.3 35.9 35.0

2020 Estimated Households 3,271 11,061 18,2542025 Projected Households 3,330 11,083 18,0152010 Census Households 3,337 10,760 17,8522000 Census Households 3,523 11,668 18,925

Projected Annual Growth 2020 to 2025 0.4% - -0.3%Historical Annual Growth 2000 to 2020 -0.4% -0.3% -0.2%

2020 Estimated White 17.0% 20.8% 26.9%2020 Estimated Black or African American 55.7% 57.0% 53.6%2020 Estimated Asian or Pacific Islander 3.1% 2.3% 3.0%2020 Estimated American Indian or Native Alaskan 0.9% 0.8% 0.8%2020 Estimated Other Races 23.3% 19.1% 15.7%

2020 Estimated Hispanic 36.0% 29.1% 23.7%

2020 Estimated Average Household Income $45,581 $46,761 $55,5462020 Estimated Median Household Income $31,531 $33,179 $38,1092020 Estimated Per Capita Income $17,126 $18,579 $21,844

2020 Estimated Elementary (Grade Level 0 to 8) 14.6% 12.8% 10.1%2020 Estimated Some High School (Grade Level 9 to 11) 15.3% 12.2% 10.6%2020 Estimated High School Graduate 35.1% 34.7% 33.0%2020 Estimated Some College 21.8% 22.8% 24.6%2020 Estimated Associates Degree Only 5.8% 5.7% 5.6%2020 Estimated Bachelors Degree Only 5.6% 8.4% 10.1%2020 Estimated Graduate Degree 1.7% 3.4% 6.1%

2020 Estimated Total Businesses 765 2,516 3,7182020 Estimated Total Employees 9,582 32,165 44,9022020 Estimated Employee Population per Business 12.5 12.8 12.12020 Estimated Residential Population per Business 11.5 11.2 12.7

INC

OM

EED

UC

ATI

ON

(AG

E 25

+)B

USI

NES

SH

OU

SEH

OLD

S R

AC

E A

ND

ETH

NIC

ITY

POPU

LATI

ON

11%

36%

2%

15%

36%

White Black Asian Other Hispanic

$45,581

$91,524

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Subject Houston

64.0%

36.0% Non-Hispanic

Hispanic

2735 FRANKLIN STREET, BEAUMONT, TX 77701

2735 FRANKLIN STREET, BEAUMONT, TX 77701

2735 FRANKLIN STREET, BEAUMONT, TX 77701

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY