3501 N Inspiration Rd

Mission, TX 78573

$315,000B+

None bd · 4.0 ba · 3,520 sqft · Built 2002 · MultiFamily · Active · 217 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,929/mo
• Mortgage (P&I): −$1,652
• Tax + insurance: −$757
• HOA: −$0
• Vac / Maint / Mgmt: −$825
• Net cashflow: $695/mo
• Annual: $8,338/yr
• Cap rate: 8.94%
• Cash-on-cash: 9.45%
• DSCR: 1.42
• 1% rule: 1.25%
• Cash to close: $88,200

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $315k. Condition is rated fair.
• At list price, monthly cash flow is $695 ($8k/yr) — positive. Per door: $174/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $315k).
• It's been on market 217 days — a 12% lower offer ($277k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $277k (12.0% below list) — sets the bar for market timing.
• In year one you build about $34k of equity ($2k loan paydown + $32k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#148 in TX, #4,155 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment D-.
• La Joya ISD (suburban): math 18% / reading 29% proficiency, ranked #759 of 826 in TX (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lloyd M Bentsen El (math 22% / reading 32%, grade F, #2,791 of 4,322 statewide, top 68%, 572 students, 86% FRL); Memorial Middle (math 24% / reading 30%, grade F, #1,177 of 1,662 statewide, top 72%, 700 students, 84% FRL); La Joya Palmview H S (math 20% / reading 37%, grade F, #1,157 of 1,632 statewide, top 72%, 2,155 students, 91% FRL) — zoned schools average 87% FRL vs 54% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+2.5%/yr); 936 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 115d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 68% of comp listings sitting > 30 days — soft ceiling on asking rent; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 2y ago 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.
• At projected returns (10.0% appreciation + 2.5% rent growth), your $88k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$54k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 94% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.9% vs local median 3.7% in Mission — 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.

Questions for listing agent

• It's been on market 217 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant wear and tear, likely requiring replacement.
• Major: siding — Severe discoloration and peeling paint, indicating extensive damage.
• Major: flooring — Old and worn, likely in need of replacement.
• Major: interior walls — Significant wear and discoloration, indicating poor condition.
• Major: bathrooms — Outdated fixtures and potential plumbing issues, requiring updates.
• Major: HVAC/mechanicals — Old units, likely inefficient and in need of replacement.