Texas Multifamily 4 Bed / 3 Bath

[Cole Bulman]

Hi everyone,

I’m a 17 year old and I'm new to analyzing rental deals and wanted to run a quick analysis by the community to see what I might be missing.

Purchase price: $250,000 on Zillow (849 Grape St, Abilene, TX 79601)

A nearby single family house 3 bed / 2 bath rents for $2,500 a month on Craigslist (313 Woodstock Ln, Abilene , TX 79602)

Important notes: 

 - Built in 1924

- Brand new hvac

 - Property Tax for 79601 area, ~ 2%

Assuming $2500 rent, expense estimates:

Down Payment: $50,000 (conventional loan)

Mortgage: 200,000 loan, (assuming 1,000 borrowed ~ 6.5 dollars per month) $1,300 per month

Property taxes: $420 per month

Insurance: $120

Maintenance: $210 (1% rule)

Vacancy: $125 (5% of rent)

Total expenses ~ $2,205/month

Estimated cash flow ~ $295/month.

Does this look like a reasonable analysis? Are there any major costs or risks I’m missing when evaluating deals like this?

Appreciate any feedback!