New Construction Fourplex Deal Analyzation

[Andrew Gomez]

Hello,

I am wondering if I have the correct mindset when it comes to this new build property in San Antonio Texas.

I am planning to buy my first investment property which is a Fourplex in Windcrest Texas just inside of San Antonio. The price of this property is about $860,000 reference is below.

I plan on Renting out all 4 units which will gross around the $6,000 mark.

In total my costs should range about $5500 and I may be able to raise the rent over time.

I am doing this passively as i own a different company which takes the span of all my time.

Would this be the correct mindset and is there anything i should watch out for when it comes to this multifamily deal? Can i have som advice as to what i should lookout for on my first multifamily deal?

Thank you,

Information on the property, 
5000  Sqft Fourplex 
4- 3 BR 2 BA units with Garages 
Priced at $860,000

I am putting 25% down as a first investment property. 

[Loren Polito]

@Andrew Gomez

Hi Andrew,

I know these brand new four plexes look appealing because they are turn key and ready to go but to me the numbers just don’t make much sense and I’m not sure there will be a ton of appreciation at that price in the Windcrest area. It’s not a terrible area but I think there are better area of San Antonio to invest in. I think you are better off steering away from the new builds and looking for something in a better area for the same price or most likely less with better cash flow and even more units. I closed on a 4 plex in South town last month, purchase price was $850K and rents are over $8000 a month and the property was fully rehabbed and turn key outside of me having to do a driveway and some landscaping. Unless you are putting a large chunk down I don’t think you will cash flow on that property for quite sometime. Sorry and I’m not trying to be negative on the property but I think there are better properties and areas in the $800-900K range.