Investment Risk Disclosure

DSCR at 70% LTV is 0.86× · this deal is below its debt-service covenant at current leverage. Investment returns depend on the OBBBA tax shield (+1,260 bps IRR), not operating cash yield. Six conditions precedent are open; do not underwrite until all six are satisfied. Not an offer to sell securities. Consult your licensed CPA and advisor before investing.

Texas STR Portfolio

Arlington STR Portfolio · scaling 4 properties to 22 across Texas

13|7 Capital LLC

Entry Tranche
$2.2M
4 operating STRs
Full Portfolio
$12M
22 properties
Target IRR
15–25%
Levered, after-tax
DSCR @ 70% LTV
0.86× ⚠
Sub-covenant
Entry Tranche

Four Arlington properties

Properties4 operating STRs
LocationArlington, TX · near AT&T Stadium
Purchase price$2,200,000 ($550K avg / door)
Est. gross revenue (conservative)$384,000 / yr
Est. gross revenue (expected)$432,000 / yr
DSCR0.86× (sub-covenant)
IRR uplift from OBBBA tax shield+1,260 bps

Returns are tax-driven, not cash-yield-driven. At 0.86× DSCR the entry tranche does not cover debt service from operations at 70% LTV · the thesis rests on the bonus-depreciation shield.

Build-Out Plan

22-property market allocation

MarketPropertiesADROccupancyPrimary risk
Arlington / DFW6$196–$30055–65%Ordinance tightening
Galveston5$309–$35146–50%Hurricane / TWIA
Hill Country5$284–$28942%Flash flood, seasonality
Port Aransas3$378–$45933–50%Hurricane, seasonality
Abilene (Stargate corridor)3$15368–77%Low barrier to entry
21.5
Portfolio HHI · moderately concentrated
100
All-Arlington HHI (for reference)
4.6×
Concentration cut by diversification
Tax Architecture

Returns are tax-driven

ItemDetail
Bonus depreciationOBBBA 100% on personal property (trailer-chassis units)
IRR uplift+1,260 bps vs. no tax shield
Gating requirementREPS qualification · §469(c)(7)
Mandatory election§1.469-9(g) grouping election once >3 properties
Excess business loss cap$626K MFJ (2025) · Yr-1 cost-seg may exceed
CPA required before purchaseYes · OBBBA classification confirmation

Not tax advice. Every property purchase must be confirmed by a licensed CPA for OBBBA classification before commitment.

Stress Scenarios

Downside grid

ScenarioTrigger (probability)Impact
AArlington ordinance tightening (15–25%)Revenue −$240K/yr on 4 affected properties
BTX 20% appraisal-cap sunset 12/31/2026 (40–60%)+$25K–$45K annual property tax portfolio-wide
C+200 bps rate shockDSCR drops to ~1.10× (covenant breach)
DNamed hurricane (coastal)$300K–$600K aggregate, partly TWIA-recovered
EFIFA World Cup underperforms (30–40%)Optionality · not underwritten as base case
Property Imagery

Representative amenities

Arlington TX STR property exterior
Arlington TX property

Imagery is representative of portfolio amenity standards, not photographs of specific acquisition targets.

Hold & Exit

3–5 year strategy

  • Appreciation across five diversified Texas markets over a 3–5 year hold.
  • World Cup optionality · FIFA 2026 DFW demand treated as upside, never underwritten as base case.
  • Portfolio sale · exit as an assembled 22-door platform at a portfolio premium to single-asset comps.
Conditions Precedent

Six open items

All six conditions precedent must be satisfied before the Arlington entry tranche is underwritten. Status: open at the time of this document. The specific conditions and their diligence detail are withheld here · contact us for the full diligence package.