Request Critique on my Property Plan

[Adam Crawford]

I have about 1 million to invest.  I would like to have a target cap rate of 5-6%.  I live in a very aggressive cap rate market that is very competitive in DFW.

I'm analyzing this property for possible investment real estate deal.

https://www.realtor.com/realestateandhomes-detail/3704-W-Beverly-Dr_Dallas_TX_75209_M72794-88274#photo0

It is 3.5 million with 25K per month in rental income. I would plan to pay 20% down and finance the rest with a 30 year fixed. 2% increase per year on rental income. No HOA. These are new units I don't anticipate a lot of capex but what would people suggest I budget?

These are higher end units so I factored in 7% occupancy rate but this is a very popular area for high income earners to live and work.  This is a work force neighborhood.

Property tax 77K per year.  Insurance I'm estimating 4K per year.  Mgmt fee 10% even tho I plan to manage myself.  Maintenance 3600 per year.

I calculate a cap rate of 5.55% with IRR of 14%.

Can anyone critique my analysis of this property?  Appreciate it.  Thanks.

Adam