Northern Hills — Investor Offering | COSO Investments LLC

Turnkey Build-to-Rent Portfolio · Golf-Course Adjacent · San Antonio, TX

Northern Hills at 13300 Scarsdale Street

Prepared exclusively for Oscar Navarro

Nineteen newly built rental townhomes sitting directly across from the clubhouse at Northern Hills Golf Club, delivered turnkey the moment construction completes — with lease-up and ongoing professional management arranged by COSO as part of the deal, so you own a finished, managed rental asset without running the leasing or the day-to-day yourself.

19
Homes, One Closing
$5.245M
Total Purchase Price
30%
Down Payment
7.0%
Fixed Rate · 10-Yr IO, 30-Yr Am

Location Thesis

Established Northeast San Antonio, Anchored by the Golf Club Next Door

Northern Hills sits along the Nacogdoches Road corridor in Northeast San Antonio — a mature, tree-lined pocket of the city built out largely in the 1970s and ’80s around the 130-acre Northern Hills Golf Club, an 18-hole semi-private course that has anchored the immediate neighborhood since 1969. It's the kind of established, low-turnover residential fabric that doesn't churn much rental inventory precisely because the people who live here tend to stay.

The golf club itself is a genuine neighborhood amenity, not just a green backdrop. It's one of the few courses in San Antonio built with Mini-Verde putting greens — the same surface PGA Tour players putt on at TPC Sawgrass — and its clubhouse hosts leagues, tournaments and banquet events that give the immediate area a built-in sense of place. The subject property sits directly across the street from that clubhouse.

Day-to-day convenience runs along Nacogdoches Road itself — dense with grocery (multiple H‑E‑B locations plus a Walmart Supercenter), everyday retail, and the Thousand Oaks Library — while the Salado Creek Greenway threads through the broader Northeast Side as the running and biking backbone connecting neighborhoods like this one to McAllister Park, Toyota Field and Morgan's Wonderland Sports. It's a part of the city residents describe as accessible and family-oriented rather than transitional: renters here are choosing a settled neighborhood, not settling for one.

Neighborhood description reflects the broader Nacogdoches Road / Northeast San Antonio corridor generally; confirm specific walk and drive distances before finalizing marketing materials.

1969
Northern Hills Golf Club opened — established, not new
130 acres
Golf club grounds directly across the street
Mini-Verde greens
Same putting surface as TPC Sawgrass — rare in San Antonio
Nacogdoches Rd
Multiple H-E-B's, a Walmart Supercenter, daily retail minutes away
Salado Creek Greenway
The running and biking backbone connecting the Northeast Side's parks, schools and neighborhoods

The Structure

A Simple, Turnkey Purchase

Your Investment

Primary Units (14 × 1,600 SF, 3BR/2.5BA, 2-Car Garage)$280,000 / home
Secondary Units (5 × 1,300 SF, 2BR/2.5BA)$265,000 / home
Blended Purchase Price$276,053 / home  ·  $5,245,000 total
Down Payment (30%)$82,816 / home  ·  $1,573,500 total
Loan Amount$193,237 / home  ·  $3,671,500 total
Interest Rate7.0%, fixed*
Interest-Only PeriodYears 1–10
Payment During IO$1,127 / home / mo  ·  $21,417 total
Amortization (After IO)30 years  (Years 11–40)
P&I Payment After IO$1,286 / home / mo  ·  $24,427 total

All 19 homes close in one transaction at construction completion; lease-up and ongoing management are arranged by COSO through a professional third-party manager starting at that point.

*Rate confirmed at closing.

Year 1 Monthly Cash Flow (Total Portfolio, Interest-Only)

Gross Rent$35,550
Less: Property Management Fee($1,778)
Less: Maintenance & Reserves($1,583)
Less: Property Tax($4,399)
Less: Insurance($1,188)
Net Operating Income$26,602
Less: Debt Service (Interest-Only)($21,417)
Net Monthly Cash Flow$5,185

Rent is priced from confirmed Bristow Dawn / Northern Hills comparables on the same street as the parcel; leasing, management and maintenance are handled by a professional third-party manager, not run by COSO.

Year 1 Isn't the Whole Story

Cash Flow Over the Full 40-Year Loan Term

The loan is interest-only for the first 10 years, so early cash flow starts strong: $5,185/month in Year 1, climbing to $9,589/month by Year 10 as rent grows against a flat interest-only payment. When the loan begins amortizing in Year 11, the payment steps up and cash flow dips to $7,106/month for one year — then resumes climbing every year after that, reaching roughly $25,975/month by Year 40, when the loan is fully paid off.

$5,185 → $25,975 / mo
Net cash flow, Year 1 to Year 40
3.95% → 19.81%
Cash-on-cash return, Year 1 to Year 40
$0 balance
Loan fully amortized by Year 40

Plan The Exit Now, Not At Year 10

Recommended: Sell at Year 5 or Year 10

Because the loan is interest-only through Year 10, the balance never amortizes below the original $3,671,500 during the hold — none of this deal's value comes from paying down debt. It comes entirely from full interest-only cash flow and portfolio NOI growth, both of which are already being captured by Year 5. Combined with a payoff amount that doesn't move, that makes a planned sale at Year 5 or Year 10 the more efficient way to realize this deal's return, rather than carrying the loan through 30 years of amortization to Year 40.

Holding to loan maturity at Year 40 — the full cash flow story is above — remains available, and the loan is paid off in full by then. That path isn't going away. But it ties up capital for three additional decades to capture equity paydown you could otherwise realize sooner, in a single transaction, and redeploy elsewhere. The tables below show what a sale could actually return at each point, across a range of exit cap rates.

If a materially better refinance becomes available before either exit point, that option remains open too — the Year 11 payment step-up is only a factor if the portfolio is still held at that point.

$3,671,500
Loan balance at both Year 5 and Year 10 — unchanged from closing during the interest-only period
$341,838
Trailing 12-mo. NOI at Year 5
$372,072
Trailing 12-mo. NOI at Year 10

Exit Value & Return Sensitivity by Cap Rate

Exit value is trailing 12-month NOI at the time of sale, capitalized at the rate shown. The loan payoff and initial equity are identical at either exit point — only NOI and time held change.

Year 5 Exit 6.50%
Downside
6.00%
As Modeled
5.50%
Market
5.25%
Market Prime
Implied Exit Value $5,259,049 $5,697,304 $6,215,240 $6,511,204
Less: Loan Payoff at Exit ($3,671,500) ($3,671,500) ($3,671,500) ($3,671,500)
Net Sale Proceeds $1,587,549 $2,025,803 $2,543,740 $2,839,704
Plus: Cash Flow Collected (Yrs 1–5) $367,217 $367,217 $367,217 $367,217
Total Cash Returned to Investor $1,954,766 $2,393,020 $2,910,957 $3,206,921
Less: Initial Equity Invested ($1,573,500) ($1,573,500) ($1,573,500) ($1,573,500)
Total Profit $381,266 $819,520 $1,337,457 $1,633,421
Equity Multiple 1.24x 1.52x 1.85x 2.04x
Average Annual Return* 4.8% 10.4% 17.0% 20.8%

*Simple average annual return (total profit ÷ initial equity ÷ years held) — not a time-weighted IRR. Trailing 12-month NOI at the Year 5 exit is approximately $341,838; cumulative cash flow reflects Years 1–5 only.

Year 10 Exit 6.50%
Downside
6.00%
As Modeled
5.50%
Market
5.25%
Market Prime
Implied Exit Value $5,724,187 $6,201,202 $6,764,948 $7,087,088
Less: Loan Payoff at Exit ($3,671,500) ($3,671,500) ($3,671,500) ($3,671,500)
Net Sale Proceeds $2,052,687 $2,529,702 $3,093,448 $3,415,588
Plus: Cash Flow Collected (Yrs 1–10) $881,188 $881,188 $881,188 $881,188
Total Cash Returned to Investor $2,933,875 $3,410,890 $3,974,636 $4,296,776
Less: Initial Equity Invested ($1,573,500) ($1,573,500) ($1,573,500) ($1,573,500)
Total Profit $1,360,375 $1,837,390 $2,401,136 $2,723,276
Equity Multiple 1.86x 2.17x 2.53x 2.73x
Average Annual Return* 8.6% 11.7% 15.3% 17.3%

*Simple average annual return (total profit ÷ initial equity ÷ years held) — not a time-weighted IRR. Trailing 12-month NOI at the Year 10 exit is approximately $372,072; cumulative cash flow reflects Years 1–10 only. Loan balance is identical to the Year 5 scenario since no principal amortizes during the interest-only period.

The payment step-up detailed above only matters if the portfolio is still held past Year 10 — every exit scenario here sells before it applies.
Cap rates are illustrative sensitivities, not an appraisal — actual exit pricing depends on market conditions at the time of sale.

Not In The Numbers Above

Potential Appreciation Is Upside, Not Included

Every cash flow and return figure on this page holds the $276,053 blended purchase price flat for all 40 years — the model credits you for rent growth and loan paydown only, never for the home simply being worth more. That's a deliberately conservative choice, not a prediction that values won't move. Given the golf-course-adjacent, established Northeast San Antonio setting described above — the kind of built-out location that doesn't add new competing supply next door — further appreciation is a real possibility this model doesn't take credit for.

Illustrative only — these are simple compounding scenarios on the $276,053 blended purchase price, not a forecast, appraisal, or part of the underwriting above. Actual appreciation (or depreciation) depends on market conditions no one can guarantee.

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