[Calc Review] Help me analyze this deal - San Antonio

[Colette Chase]

Hey everyone,

New to the San Antonio area and actively looking to buy. I have experience buying in other states but not so familiar with the local rates for rent, insurance, garbage, sewage, elec fees for landlords owning multi-unit.  

This particular property is a triplex.  Anyone familiar with 78207 zip code could share experience on accuracy of my numbers?

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*This link comes directly from our calculators, based on information input by the member who posted.

[Austin Petrie]

@Colette Chase, I probably got to this post a bit too late for this to matter if you offer or not, but I'll leave some things to think about here anyway.

Firstly, I don't know this area so getting a true understanding of it is obviously key, but just looking at the projected monthly income compared to the total cost of the project makes me wonder if there's potentially a catch. And that catch usually is the property/neighborhood class. I looked up the crime rates of that zip code (a quick way to get a sense of neighborhood class) and compared it to all of San Antonio and found it has an extremely high crime rate. This is an easy way to tell that most likely it is a C to D (maybe warzone) neighborhood. Now based on this information, there are some factors worth considering such as tenants who are less likely to care for the property leading to higher repair costs, tenants who are more likely to be unable to pay rent or make it difficult to collect leading to higher vacancy/PM costs, and difficulties finding good team members (PM, contractors, etc.) who are willing to work in that area.

Another thing to consider is that the property is all 1br/1ba units. Tenants who live in 1br properties typically stay for shorter periods of time (I've been told to expect ~1yr), therefore this increases your vacancy rates and repair costs (to fix the place up for the next tenant).

Remember, I don't know this area so the things I have mentioned could not apply to this property, but they are things I believe are always beneficial to consider when you come across a property like this.