2535 Wedglea Dr #224

Dallas, TX 75211

$178,900F

2 bd · 2.0 ba · 1,056 sqft · Built 1983 · Condo · Active · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,403/mo
• Mortgage (P&I): −$938
• Tax + insurance: −$298
• HOA: −$391
• Vac / Maint / Mgmt: −$295
• Net cashflow: $-519/mo
• Annual: $-6,227/yr
• Cap rate: 2.81%
• Cash-on-cash: -12.43%
• DSCR: 0.45
• 1% rule: 0.78%
• Cash to close: $50,092

Investor read

• This is a 2-bed/2.0-bath condo listed at $179k. Condition is rated good.
• At list price, monthly cash flow is $-519 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $104k (42.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $140k (21.6% below list).
• It's been on market 46 days — a 3% lower offer ($174k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $104k (42.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#24 in TX, #1,380 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Stevens Park El (math 29% / reading 28%, grade F, #2,706 of 4,322 statewide, top 63%, 640 students, 98% FRL); Raul Quintanilla Sr Middle Steam Academy (math 31% / reading 31%, grade F, #1,015 of 1,662 statewide, top 62%, 592 students, 94% FRL); L G Pinkston H S (math 10% / reading 21%, grade F, #1,505 of 1,632 statewide, top 92%, 1,139 students, 92% FRL).
• Watch-outs: HOA is 28% of rent.
• Market conditions: Rents falling (-3.9%/yr); 267 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 45% of comp listings sitting > 30 days — soft ceiling on asking rent; 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
• Dallas County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.8% vs local median 2.3% in Dallas — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 46 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.