San Antonio Duplex Analysis

[Eric Stanley]

I have been looking into the San Antonio area for multi family and came across this property. It seems like a cash flowing deal to me, can someone help confirm this?

http://www.realtor.com/realestateandhomes-detail/14451-Edgemont-St_San-Antonio_TX_78217_M88418-30786

4 beds

4 baths

1,776 sq ft

6,970 sq ft lot

Rents for the units are $800 and $775

Built in 1983

Asking price: $185,000

Estimated cash flow/year: $2,302. IRR 3.3%.

This assumes 10% property management, 5% vacancy, 20% down, taxes included, insurance included, ROI per year 6.2%.

Your thoughts? Thanks in advance!

[Rick Pozos]

Yes it does cashflow. The question is: "Do you want to make 6.2% on your money??" I bet you could lend that money to some investors and make 8% or maybe even a little more with a lot less hassle. All it takes is a bad tenant who does not pay for a month, eviction takes about a month also and then it takes a couple of weeks to clean it up, then a month to find another tenant. Wow, now you are out 3 1/2 months of rent. Now all of your cashflow is wiped out for the year.