Magnolia Plan

Midlothian, TX 76065

$525,990F

4 bd · 2.5 ba · 3,192 sqft · Built — · SingleFamily · Active · 774 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,067/mo
• Mortgage (P&I): −$2,937
• Tax + insurance: −$933
• HOA: −$0
• Vac / Maint / Mgmt: −$644
• Net cashflow: $-1,448/mo
• Annual: $-17,374/yr
• Cap rate: 3.19%
• Cash-on-cash: -11.08%
• DSCR: 0.51
• 1% rule: 0.55%
• Cash to close: $156,824

Investor read

• This is a 4-bed/2.5-bath single-family listed at $526k. Condition is rated excellent.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $351k (33.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $307k (41.7% below list).
• It's been on market 774 days — a 12% lower offer ($463k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $307k (41.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#371 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Midlothian ISD (suburban): math 53% / reading 52% proficiency, ranked #94 of 826 in TX (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: T E Baxter El (math 49% / reading 48%, grade D, #950 of 4,322 statewide, top 22%, 600 students, 37% FRL); Walnut Grove Middle (math 57% / reading 56%, grade B, #226 of 1,662 statewide, top 14%, 992 students, 21% FRL).
• Market conditions: Rents rising fast (+4.3%/yr); tight market (median 1 DOM); 1408 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 3,016 units permitted in Ellis County in 2024 (20 in 5+ unit buildings).
• Ellis County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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 774 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.