From what I have read and heard, a conservative underwriter should project the exit cap rate at least 50 to 200 bps higher than the purchase cap rate.

I would be as conservative as possible in judging for cash flow. $38,000 would be amazing to get that, but of course, those are estimates and if it works out well. 

You are being very conservative to avoid making mistakes, and that is a rare, admirable quality in real estate that is often undervalued. 

Lastly, make sure to rework your numbers on the conservative side. 

Be conservative and don't rely on young adults to pay their rent.

From the little I know of San Antonio (I am a wholesaler who specializing in selling STRs nationwide) its not a super hot Airbnb market but the amount you expect for rent sounds pretty conservative. 

I'm a very conservative investor and may look through a hundred deals a month, and at the end of the year only invest in 4-5.

I would just take into account that a lower down payment will mean a higher monthly payment so be sure to run the numbers conservatively in order to ensure your STR revenue is able to carry your monthly payment with this higher mortgage cost. 

Make sure to analyze cash flow, including conservative estimates for vacancy and maintenance.Indianapolis Market: Indy has solid multifamily options in neighborhoods like Irvington, Fountain Square, and near downtown.

I haven’t gotten bids yet (build is too far away), but I’m hoping to keep it under $300K by subbing out the work myself.I’m not a huge Dave Ramsey fan, but I do lean toward being conservative and avoiding too much debt.