2002 Mockingbird Bnd Unit B-5

Graford, TX 76449

$328,000D-

3 bd · 2.0 ba · 1,464 sqft · Built 1985 · Condo · Active · 141 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,417/mo
• Mortgage (P&I): −$1,720
• Tax + insurance: −$547
• HOA: −$413
• Vac / Maint / Mgmt: −$507
• Net cashflow: $-771/mo
• Annual: $-9,247/yr
• Cap rate: 3.47%
• Cash-on-cash: -10.07%
• DSCR: 0.55
• 1% rule: 0.74%
• Cash to close: $91,840

Investor read

• This is a 3-bed/2.0-bath condo listed at $328k. Condition is rated good.
• At list price, monthly cash flow is $-771 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (34.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $242k (26.3% below list).
• It's been on market 141 days — a 12% lower offer ($289k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $216k (34.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#856 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety D+, crime F.
• Palo Pinto ISD (rural): math 60% / reading 70% proficiency, ranked #86 of 1,141 in TX (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Palo Pinto El (math 54% / reading 54%, grade C, #621 of 4,322 statewide, top 15%, 97 students, 54% FRL).
• Market conditions: 523 active listings in the ZIP; 27 units permitted in Palo Pinto County in 2024 (0 in 5+ unit buildings).
• Palo Pinto County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Cap rate 3.5% vs local median 0.8% in Graford — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent runs 41% of the median local income ($71k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 141 days. Have you received any prior offers? Is the seller open to a 34% 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?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?