Lender · New York City · Member since 2026 · 17 posts · 8 votes
5mo
At 603K with 3,625 per month in rent, you are at roughly 43,500 annually, which puts you around a 7.2 percent gross yield. In a market like Buda just outside Austin, that is not terrible, but it is not strong enough to ignore the financing side.
With today’s rates, your debt service is likely going to land somewhere in the mid to high 3K range depending on leverage. Once you factor in taxes, insurance, and reserves, this deal is probably break even at best, maybe slightly negative on a traditional loan.
The zero rehab and zero headaches angle is real with new construction, but you are paying for that in the purchase price. Builders are baking their margin into the deal, and the zero closing costs is just being absorbed somewhere in that number.
What I would focus on is whether there is rent upside or if you are already at market, how taxes will reassess after the sale, and what this looks like if rents soften.
Bottom line, this is a solid asset in a strong area, but not a high performing investment unless you are bringing a larger down payment or betting on appreciation.