← Deal Breakdown
Issue #150April 2026

Vegas Micro-Unit Density + Naked City Tax Trap + Tampa STR Portfolio

Downtown Vegas 83-unit delivering $33M Year 30. Naked City 24-unit property tax error breaks the model. Tampa STR 8.8% CoC with Florida regulatory protection.

FIX & FLIP
371 E William St
San Jose, CA 95112
1 units · 0% cap · 88% CoC
6/10⚠️
✓ Opportunity
Strong ROI on a small cash position. 88% cash-on-cash return on $120K deployed at the $775K offer price. Located one block from SJSU with commercial zoning — opens the buyer pool to investors, house-hackers, and development plays.
⚠ Risk
Model disagreement — Claude scored 4/10 (hold), GPT-4o and Grok scored 7/10 (buy). Thin ~10% margin on resale leaves minimal cushion for rehab overruns. $85K rehab budget must be contractor-verified before offering.
URBAN DENSITY PLAY
200 S 8th St
Downtown Las Vegas, NV
83 units · 7.3% cap · 5.7% CoC
7/10
✓ Opportunity
83 doors at $83K/unit on the Fremont corridor with 6 years of proven occupancy including through COVID. Kitchen conversions on 59 studios at $150/unit bump produce $1.45M implied asset value on ~$708K capex — 105% ROI on the conversion alone.
⚠ Risk
Staffed operating business, not a passive hold. On-site payroll $8,600/mo + owner-paid utilities $8,300/mo. Sub-250 SF average unit size creates financing complexity — confirm lender terms before going under contract.
TAX TRAP ⚠️
2216 Tam Dr
Las Vegas, NV
24 units · 6.3% cap · 2.2% CoC
4.5/10
✓ Opportunity
24 units near the Strip with R-4 zoning and a motivated seller — price already reduced. RUBS utility recovery could add $14-17K/yr in NOI at minimal cost. At $2.4-2.5M with verified taxes the deal potentially becomes interesting.
⚠ Risk
Property tax in the OM is almost certainly wrong. Modeled at $5,400/yr — Nevada effective rate puts post-sale taxes at ~$17,100/yr. That correction drops monthly cash flow from $1,442 to $467 and DCR from 1.11 to 1.04. Call Clark County: (702) 455-3882.
STR BUSINESS
4513 W McElroy Ave
South Tampa, FL
4 units · 8.2% cap · 8.8% CoC
7.5/10
✓ Opportunity
8.8% CoC on $238K deployed with Florida state preemption removing the regulatory risk that kills most STR investments. Turnkey operation — existing listing, reviews, and search ranking transfer at close. MacDill AFB + cruise port + Amalie Arena drive year-round demand.
⚠ Risk
62% expense ratio is structurally normal for STR — platform fees (14%), cleaning (8%), management (15%). The model only works at $16K/mo gross. A drop to $13K approaches breakeven. No trailing revenue confirmed yet.

This Week's Deals

Four properties across two markets — a San Jose fix & flip with a Max IQ model disagreement, an 83-unit Vegas micro-unit density play, a Naked City 24-unit with a critical tax error, and a turnkey Tampa STR with state-level regulatory protection.


🏠 San Jose Fix & Flip — 371 E William St

San Jose, CA 95112 · 3bd/2ba · 956 sqft · Built 1910 List $800,000 · Offer modeled at $775,000 · Hard money 10% down

This one was run through Max IQ — three models, three perspectives. The result was a split verdict.

Max IQ Results

ModelScoreVerdict
Claude Opus (Skeptic)4/10Hold
GPT-4o (Sponsor)7/10Buy
Grok 3 (Quant)7/10Buy
Average6/10Conditional Buy

The Numbers

MetricValue
Offer Price$775,000
Down Payment (10%)$77,500
Total Cash In$120,140
Rehab Budget$85,000
ARV (modeled)$1,055,827
Net Profit$105,675
ROI on Cash88%

Opportunity

Strong ROI on a relatively small cash position. At $775K, the model produces 88% cash-on-cash return on $120K deployed. Located one block from SJSU with commercial zoning — opens the buyer pool to investors, house-hackers, and development plays. ARV modeled at $1,055,827 based on recent area comps.

Risk

The model disagreement is the story. Claude scored it 4/10 (hold) while GPT-4o and Grok scored 7/10 (buy). The disagreement comes from ARV uncertainty and a thin profit margin of approximately 10% on resale value — minimal cushion for rehab overruns or any market softness. The $85,000 rehab budget must be contractor-verified before offering.

Verdict: 6/10 — Conditional Buy

At or below $775K with a verified rehab budget and confirmed ARV comps. Do not overpay — every $25K over ask compresses an already thin margin.


🏢 Vegas Carson View — 83-Unit Micro-Unit Density

200 S 8th St, Downtown Las Vegas, NV 89101 $6,900,000 ($83,133/unit) · 83 Units · Motel Conversion

The Numbers

MetricValue
Down Payment (25%)$1,725,000
Total Cash Required$1,932,000
Gross Rent$73,940/mo ($891/unit avg)
Annual Cash Flow$109,176
Day 1 CoC5.7%
Cap Rate7.3%
DCR1.28
Break-Even Occupancy81.1%
Year 30 Total Profit$32,966,494

Opportunity

83 doors at $83K/unit on the Fremont corridor with 6 years of proven occupancy including through COVID. Kitchen conversions on 59 studios at a conservative $150/unit bump produce $1.45M in implied asset value on ~$708K capex — a 105% ROI without touching the remaining 24 units. 81.1% break-even ratio means you only need to exceed 18.9% vacancy to cover all costs and debt service.

Risk

Staffed operating business, not a passive hold. On-site payroll runs $8,600/mo and owner-paid utilities add $8,300/mo. Average unit size of 228 SF creates financing complexity — many conventional lenders won't touch sub-250 SF. Confirm lender terms before going under contract.

Verdict: 7/10 — Buy, Experienced Operator Only

Strong urban density play at an irreplaceable basis. Right hands, with $300-400K in reserves beyond the down payment.


🏢 Vegas Fortune Villas — Property Tax Error Breaks the Model

2216-2224 Tam Dr, Las Vegas, NV 89102 · Naked City $2,850,000 ($118,750/unit) · 24 Units · 91% Occupied

Modeled vs Tax-Corrected

MetricAs ModeledTax Corrected
Property Taxes$450/mo~$1,425/mo
Annual Cash Flow$17,304~$5,604
CoC2.2%~0.7%
DCR1.11~1.04
Monthly Cash Flow$1,442~$467

The Tax Problem

Nevada's effective rate on a $2.85M purchase puts actual post-sale taxes at approximately $17,100/year — more than 3x the modeled $5,400. That single correction drops monthly cash flow from $1,442 to $467 and DCR from 1.11 to 1.04.

At 1.04 DCR one bad month turns negative.

MANDATORY before offer: Call Clark County Assessor at (702) 455-3882. Ask for the actual assessed value and tax obligation on a property purchased at $2,850,000.

Opportunity

24 units near the Strip with R-4 zoning and a motivated seller. RUBS utility recovery adds $14-17K/yr in NOI at minimal cost. Renovation upside on unrenovated units. At $2.4-2.5M with verified taxes the deal potentially becomes interesting.

Verdict: 4.5/10 — Hard Pass at Current Ask

Walk unless taxes verify or price corrects to $2.4-2.5M.


🏖️ Tampa STR 4-Unit — 8.8% CoC, Florida Protected

4513 W McElroy Ave, South Tampa, FL 33611 $850,000 ($212,500/unit) · 4 Studios · Turnkey Airbnb

The Numbers

MetricValue
Down Payment (25%)$212,500
Total Cash Required$238,000
Gross STR Revenue$16,000/mo
Annual Cash Flow$21,000
CoC8.8%
Cap Rate8.2%
DCR1.43
Expense Ratio62%

Why 62% Expense Ratio Is Not a Problem

LTRSTR
Gross Revenue$6,000/mo$16,000/mo
Expense Ratio40-45%62%
NOI~$3,300/mo~$5,780/mo

The 62% comes from three STR-specific costs that don't exist in LTR: Airbnb fees (14%), cleaning per-stay (8%), and management (15%). The $16K gross compensates for all of it and produces 75% higher NOI than the equivalent LTR.

The Florida Advantage

Florida Statute 509 provides state-level preemption — cities and counties cannot prohibit short-term rentals outright. This removes the existential regulatory risk that makes most urban STR investments fragile.

Risk

The model only works at $16K/month gross. A drop to $13K approaches breakeven. Verify trailing 12-month Airbnb payout history before closing.

Verdict: 7.5/10 — Buy Contingent Revenue Verification

Confirm $180K+ annual gross from actual payout history. If verified, move confidently.


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