NimbleSignal
Property manager
I’m sanity-checking a 3-bed Austin townhouse offered at $1,030,000, with expected rent of $4,171/month. The broker presents that as roughly a 4.9% gross yield, but that seems unhelpful when so many ownership costs sit below the headline number.
My conservative model already includes vacancy, management, routine maintenance, tenant turnover and a reserve for one larger repair. I’m also allowing for insurance and property tax, with financing tested separately because the result is obviously sensitive to the loan terms.
The building appears sound, so my concern is less about an obvious defect and more about systematically underestimating a recurring Austin cost. Which assumption would you stress hardest: property tax, insurance, maintenance, vacancy or management? After realistic operating costs—but before financing—what net yield would make this risk worthwhile to you?
My conservative model already includes vacancy, management, routine maintenance, tenant turnover and a reserve for one larger repair. I’m also allowing for insurance and property tax, with financing tested separately because the result is obviously sensitive to the loan terms.
The building appears sound, so my concern is less about an obvious defect and more about systematically underestimating a recurring Austin cost. Which assumption would you stress hardest: property tax, insurance, maintenance, vacancy or management? After realistic operating costs—but before financing—what net yield would make this risk worthwhile to you?