San Antonio MF Deal analysis help

[David Gutierrez]

Hello Everyone,

Long time reader, first time poster.  I wanted to ask your feedback on a potential property.  I am an OOS investor looking at the San Antonio area.

Newly built Quad in a B/B- area near military base

560,000

Rents 4800

 loan with 25% down (4.375% 30 year)

Hoa - none

Closing costs 1.5%

Est appreciation 3.6%

Vacancy 5%

Property tax 14000

Prop mgmt 8%

Insurance 2k annual

Repairs / cap ex - 5%

I estimate around 6k annual cash flow.  I don't know if sewer/water is included or not at the moment.  What do you think of my estimates for vacancy, repairs etc?  Decent deal or should I walk?

[David Pere]

That is a lot of money down, and a lot of loan, to only make $6k annually. Is there a forced appreciation play too? Exit strategy? 

Also, you should try running it through the BiggerPockets calculator and seeing what it comes out at!