San Antonio Area 4-plex Flip, BRRRR, other suggestions?

[Jason Holbrook]

Any investors, especially those in San Antonio, want to weigh in on this one? I love the BRRRR strategy, and I generally prefer long term holds, but this one doesn't seem to work well under that strategy. I've tried playing around w/ the refinancing loan amount dropping it to 300k and 200k at those levels it cash flows at 6-8% CoC return. As a side note, the house has a current countersuit against the city to stop a teardown order. After the current owners counter-sued and hired a structural engineer to assess the property, they've agreed to work with new owners to rehab the property as long as it's to code. Have a copy of the engineer's report and letter from the city/lawyer. What are your suggestions, should I walk away from this?

Purchase cost - 160k

Repair cost - 150k

ARV - 400k

Initial Closing Costs - 4800

Repair time - 6 months

Holding Costs - 1500/mo

Monthly Rent - 850x4=3400 - 2b 1b (750sq ft a unit) 

Vacancy - 6.8% (231/mo)

Repairs - 175/mo

Capex - 175/mo

Management - 350/mo

Taxes - 3923.67

Insurance - 200/mo

Separate Electric

Shared Water/Sewage

Landscaping

BRRRR = no cash flow if refinance for 400k (280k cash back) I've tried playing around w/ different refinance amounts 200/300k and it makes a little more sense but still only 6-8% CoC return

Flip = 70k~ profit after all closing costs