[Calc Review] Help me analyze this deal

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Hi. This property is located between the Lower Greenville and Old East Dallas neighborhoods of Dallas, TX, zip code 75206. It is a new construction consisting of 5 attached townhomes. Each unit is approximately 1405 square feet with 2 bd/2.5 ba. Financing is 50% down with a 5% interest rate. Are my estimated expenses accurate? Am I under or over-estimating certain items? Any advice is appreciated.



I'd do a bottom up analysis on the expenses.  Not sure what local tax rates are in Lower Greenville, but my guess is somewhere in the neighborhood of 2.5% annually.  So,  if you spend 1.9mm (assume tax appraised equal purchase price) then you're property taxes are going to be about 47.5k/yr or ~4k month.  I'd call to get a quote on insurance but I doubt you're looking at more than 2k/month a unit.  So, the 6250 is probably not that far off.   That said, your annualized total return isn't that attractive for an illiquid investment.  I would want at least 10%.  Stock market has historically given 8-9% and  you can sell it an instant without all the transaction costs.