Rental property near San Antonio Medical Center

[Julian John]

I am analyzing a deal near the San Antonio Medical Center. The area is great for rentals as its 1 mile away from USAA and the South Texas Medical Center. However on analysis, since the prices have gone up in a year I am seeing only 5% Cash on Cash Return. The property is kinda turn key with the roof and flooring replaced. I would like to know whether this is a good investment since I am seeing a good appreciation for the properties in this area. 

[Nathan Seltzer]

You didn't give anywhere near enough info for anyone to make a reasoned recommendation. 

I will say that while you should always be careful about using estimated appreciation as justification for making a mediocre investment, it is especially true right now. The San Antonio market is cooling off, and any purchase now is likely to be near the top of the market, and not a candidate for short term appreciation. 

What investment strategy are you employing? Buy and hold, or BRRR?

The medical center has high turnover and high crime. I would bake in additional margin to make a purchase worth it in that area. 

If you want the seasoned guys to give you decent advice, provide more information. Is this a SFR, MF, or what? What is the price, rehab cost (nothing is 100% turnkey), capex, expenses, current rent, etc. If you know the cap rate or GRM, that would also be handy. You will need to compare those against other properties in the area, so include any market research you've done. Your post seems to indicate it is vacant. If so, why?

Your post is concerning because it would be easy to assume that if you are asking for advice without providing this information, then you may be making a decision without having it. If that is the case, walk away from the deal and do your homework. You might lose a little face, but it will save your finances.