On June 14, 2026, a citywide flash flood put roughly 8 inches of water into the building — a declared flood emergency for Waco, not a result of any building deficiency. The property's NFIP flood policy carried a $500,000 coverage limit. In July the carrier issued a $40,000 progress payment, paid directly to the remediation contractor for repair work completed to date. On August 31, the carrier issued the final settlement of $460,000, bringing total insurance proceeds to the full $500,000 policy limit. The flood insurance claim is now fully settled. The settlement funds are held in a dedicated property account and are earmarked to complete the remaining unit repairs.
29 units (2,540 SF) remain unrentable pending repair completion, down from 35 units (3,230 SF) in July — 6 units returned to service during August. With the July rent waiver behind the property, management shifted its retention and lease-up strategy in August to a temporary reduction in market rental rates combined with increased marketing spend, aiming to rebuild occupancy following the flood-driven decline. These measures have already produced new move-ins, and management's stated target is to restore occupancy to 90% or higher in the coming months.
Ownership's plan for the next 60 days: apply the settlement proceeds to complete remediation on the remaining 29 units, return them to service, and monitor the rate reduction's effect on leasing velocity so pricing can normalize as occupancy recovers.
| Line Item | August Actual | August Budget | Variance | Status |
|---|---|---|---|---|
| Total Revenue | $48,793 | $54,094 | -$5,301 (-9.8%) | BELOW |
| Controllable Operating Expenses | $17,925 | $14,861 | -$3,064 (-20.6%) | OVER |
| of which Repairs & Maintenance | $4,641 | $1,250 | -$3,391 | OVER — routine HVAC/access-tech, not flood-related |
| Uncontrollable Operating Expenses | $19,359 | $18,475 | -$884 (-4.8%) | OVER |
| Total Operating Expenses | $37,284 | $33,336 | -$3,948 (-11.8%) | OVER |
| Net Operating Income | $11,509 | $20,758 | -$9,249 (-44.6%) | BELOW |
| Debt Service (Interest) | $17,538 | $16,956 | -$582 | WATCH |
| Net Cash Flow (NOI − Debt Service) | -$6,029 | $3,802 | -$9,831 | BELOW |
| YTD Revenue | $404,952 | $455,596 | -$50,644 (-11.1%) | BELOW |
| YTD Net Operating Income | $110,459 | $216,868 | -$106,409 (-49.1%) | BELOW |
| YTD Net Cash Flow (NOI − Debt Service) | -$1,253 | $109,116 | -$110,369 | BELOW |
| Month | Total Revenue | Total OpEx | NOI |
|---|---|---|---|
| Sep 2025 | $51,552 | $15,492 | $36,060 |
| Oct 2025 | $55,356 | $55,354 | $2 |
| Nov 2025 | $53,199 | $5,688 | $47,510 |
| Dec 2025 | $53,985 | $87,978 | -$33,993 |
| Jan 2026 | $50,655 | $66,229 | -$15,574 |
| Feb 2026 | $57,269 | $25,869 | $31,400 |
| Mar 2026 | $58,950 | $29,702 | $29,248 |
| Apr 2026 | $60,942 | $33,560 | $27,382 |
| May 2026 | $62,524 | $33,369 | $29,155 |
| Jun 2026 | $58,588 | $32,155 | $26,433 |
| Jul 2026 | $7,230 | $36,324 | -$29,094 |
| Aug 2026 | $48,793 | $37,284 | $11,509 |
| T12 Total | $619,043 | $459,005 | $160,038 |
| Status | Units | % of Units | Area (SF) | % of Area |
|---|---|---|---|---|
| Occupied | 333 | 65.4% | 41,910 | 69.0% |
| Vacant | 147 | 28.9% | 15,945 | 26.3% |
| Unrentable (Flood) | 29 | 5.7% | 2,540 | 4.2% |
| Complimentary (excluded from leased totals) | 2 | — | 300 | — |
| Total (as of 8/31/26) | 509 | 65.4% all-in | 60,695 | 69.0% all-in |
| Activity | August (MTD) |
|---|---|
| Move-Ins | 22 |
| Move-Outs | 43 |
| Net Unit Change | -21 |
| Auctions (enforcement) | 21 |
| Aging Bucket | Balance | Accounts |
|---|---|---|
| 0-10 days | $8 | 5 |
| 11-30 days | $4,134 | 12 |
| 31-90 days | $270 | 18 |
| 91+ days | $15 | 1 |
| Total Unpaid (current tenants) | $4,426 | 36 |