FOUR UNITS BRAND NEW FOR SALE UNDER 540k Making 63k a year.

[Irene Uribe]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $540,000
Cash invested: $108,000

Investing in South Texas offers additional benefits The price per square foot for new construction in South Texas is among the lowest in the country, making it an excellent value for investors seeking high-quality properties at a reasonable cost. McAllen, for instance, has been ranked among the top 5 safest cities in the U.S. since 2020. The region's young population and growing economic opportunities contribute to high occupancy rates, typically ranging from 90% to 97% year-round.

What made you interested in investing in this type of deal?

Easy to purchase with DSCR loans for investors or Owner Occupied, FHA with low down-payment. Most brand new units fill up within weeks if not leased already! The price for these 4200 SF buildings are very low about $135,000 per unit leased at $1350 a month and they have high end custom finishes and private patios, covered parking for 2 vehicles and usually all individual meters. Management in the area runs about 5% income or $275 set fee per month for all 4 units.

How did you find this deal and how did you negotiate it?

We build these for ourselves or our clients! If there is no real estate agent involve we provide the 2% discount back to our customers or we are happy to pay the buyers broker such fee. Prices can be lower depends on finish out and SF , we have provided lower prices when buyer provides cash or own construction loan.

How did you finance this deal?

DCSR loan, easy! Strong Financial Returns: With typical CAP rates around 9%, and an average cost of approximately $530,000 for a three-bedroom, two-bath fourplex, investors can expect an annual income of over $60,000. These figures highlight the strong cash flow potential and attractive returns that new fourplex investments in South Texas can offer.

How did you add value to the deal?

As a builder we control the cost and we can adjust to our clients budgets when possible, or provide additional turn key services as blinds, rent units, pre-rent units or let their property manager start advertising even before closing to give our clients the ability to make money right away!

What was the outcome?

A 9% cap on these buildings and high ROI.

Lessons learned? Challenges?

Challenge was to save more money to buy some more!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Rent Now RGV property management, First Choice Realty