Back
Landlord Cash Flow ZIP

78227 - West Side / Leon Valley

Strong rental market with excellent cash flow - perfect for landlord buyers seeking high cap rates.

$180K
Avg Purchase
$1,650
Avg Rent
9.2%
Cap Rate
$350-500
Monthly CF

Why Landlords Love 78227

Meets 1% rule - $180K house rents for $1,650+ = 0.92% (close enough!)
Blue-collar tenant base - Working families, USAA employees, hospital workers. Stable renters.
Low vacancy - 4-6% vacancy rate. High demand for affordable rentals.
Near employers - Close to USAA, Medical Center, Sea World. Easy commute.

Target Property Profile

Ideal Rental Property

  • • 3 bed, 2 bath (most demand)
  • • 1,200 - 1,800 sqft
  • • Built 1970-2000
  • • Brick or stucco exterior
  • • Fenced backyard

What Landlords DON'T Need

  • • High-end finishes (waste of money)
  • • Granite counters (laminate is fine)
  • • Hardwood floors (LVP is better)
  • • Pools (liability + maintenance)
  • • Open floor plans (not required)

Offer Strategy for 78227

Use this rule: 75-80%

Landlords care about cash flow, not flip margins. They can pay more because they hold long-term.

Example MAO Calculation:

ARV (as rental): $185,000

× 75%: $138,750

- Repairs ($15K): $123,750

- Assignment fee ($8K): MAO: $115,750

Cash Flow Analysis Template

Monthly Rent:$1,650
- Mortgage (P&I @ $140K):-$750
- Property Tax:-$290
- Insurance:-$100
- Maintenance (5%):-$83
- Vacancy (5%):-$83
Monthly Cash Flow:$344

Pro Tips for 78227

  • 1.Present deals with rent estimates - landlords want to see the numbers
  • 2.Minimal rehab = faster close. Landlords don't need pretty, just functional.
  • 3.Section 8 accepted here - guaranteed government rent = attractive to investors
  • 4.Occupied properties OK - if tenant paying, landlord may keep them

Key Takeaway

78227 is cash flow country. Different buyer = different pitch. Lead with monthly income potential, not ARV. Landlord buyers will pay 75-80% because they make money on rent, not resale.

All ZIP Codes Next: 78242 South Side