404 S 20th St · McAllen, TX 78501

$89,000

1 bd · 1.0 ba · 800 sqft · SingleFamily public records · 122 Days on market

Built 1972 2,225 sqft lot $111/sqft · 33% below area Est $133k · 33% under ↓ 11% since listing

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Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +23.0/30.0
• ARV discount +15.0/15.0
• DSCR +7.4/10.0
• 1% rule +5.5/10.0
• Livability +3.8/5.0
• Schools +3.3/10.0
• Rent growth +2.9/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Great starter home centrally located in McAllen—perfect for a couple looking to own instead of rent! Priced under $100K, this property offers an affordable opportunity with a comfortable mortgage and a convenient location close to shopping, dining, and schools.

Key facts

• Centrally located
• Convenient location
• 2,225 sq ft lot

Tags

• CENTRALLY LOCATED
• AFFORDABLE OPPORTUNITY
• CONVENIENT LOCATION

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $89k.

Deal economics

• At list price, monthly cash flow is $158 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($939 rent vs $89k).
• Recommended offer: $78k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.4% vs local median 3.7% in McAllen — 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.

Location & tenants

• Location reads 76/100 on livability (#119 in TX, #3,771 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Mcallen ISD (urban): math 34% / reading 45% proficiency, ranked #440 of 826 in TX (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fields El (math 22% / reading 27%, grade F, #3,052 of 4,322 statewide, top 74%, 481 students, 91% FRL); Travis Middle (math 16% / reading 28%, grade F, #1,360 of 1,662 statewide, top 83%, 516 students, 96% FRL); Mcallen H S (math 30% / reading 57%, grade F, #704 of 1,632 statewide, top 43%, 2,133 students, 63% FRL) — zoned schools average 83% FRL vs 50% district-wide (33 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+1.8%/yr); 390 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 52% 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).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 122 days — a 12% lower offer ($78k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: severe wind risk, 99% 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.

Recommended offer $78,320 (12.0% below list)

Questions for the listing agent

1. It's been on market 122 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.05% ✓
• Cap rate: 8.42%
• Cash-on-cash: 7.61%
• DSCR: 1.34
• GRM: 7.9

CMA / ARV

• ARV (median comp): $132,613
• List price: $89,000
• Delta: -32.89%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1021 18th St	0.45mi	2/1.0 (+1)	806 (+1%)	6mo	$187,500	$233	68
2020 Cedar Ave	0.45mi	2/1.0 (+1)	772 (-4%)	3mo	$68,000	$88	66
2404 Lindberg Ave	0.59mi	2/1.0 (+1)	792 (-1%)	5mo	$80,000	$101	61
2013 Newport Ave	0.59mi	1/1.0	868 (+8%)	4mo	$57,000	$66	55
402 N 16th St	0.58mi	2/1.0 (+1)	784 (-2%)	15mo	$130,000	$166	52
2104 Newport St	0.57mi	2/2.0 (+1)	804 (+0%)	16mo	$85,000	$106	50
713 S 27 1/2 St	0.72mi	2/1.0 (+1)	868 (+8%)	23mo	$130,000	$150	28

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 1.78% rent growth · sell at horizon

5-year hold

• IRR: -6.0%
• Equity multiple: 0.78×
• Total profit: $-5,499
• Equity at exit: $13,270

10-year hold

• IRR: 2.1%
• Equity multiple: 1.14×
• Total profit: $3,594
• Equity at exit: $7,695

Cash invested: $24,920 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 78501

• Home prices YoY: -23.3%
• Rents YoY: 1.8%
• Active inventory: 390
• Price-to-rent: 7.9×

Monthly cashflow live

• Estimated rent: $939 high
• Mortgage (P&I): −$467
• Tax from tax record: −$80 /mo · $958/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$197
• Net cashflow: $158

Break-even live

Break-even rent $739

Max offer price $89,000

Occupancy floor 78%

Sensitivity live

Price	-10% $208	-5% $183	+0% $158	+5% $133	+10% $108
Rent	-10% $84	-5% $121	+0% $158	+5% $195	+10% $232
Rate	-1.0pp $203	-0.5pp $181	base $158	+0.5pp $135	+1.0pp $112

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $22,250
• Closing costs: $2,670
• Reserves months: —
• Total cash needed: —

Rent comps 23 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
604 S 16th St Apt 5 McAllen, TX	1.0	1.0	760	$750	$0.99	25d	1	0.25mi
1515 S 16th St McAllen, TX	2.0	1.0	1050	$975	$0.93	45d	1	0.36mi
1515 W Houston Ave McAllen, TX	2.0	1.0	1050	$1,800	$1.71	45d	1	0.36mi
1510 Ithaca Ave #2 McAllen, TX	2.0	1.5	998	$1,000	$1.00	25d	1	0.41mi
901 Galveston Ave Unit C McAllen, TX	2.0	2.0	888	$950	$1.07	16d	1	0.75mi
317 S 28th St Unit 4 McAllen, TX	2.0	1.0	800	$750	$0.94	45d	1	0.75mi
317 S 28th St Unit 3 McAllen, TX	2.0	1.0	800	$800	$1.00	45d	1	0.75mi
2401 Gumwood Ave W Unit 8 McAllen, TX	2.0	1.0	868	$525	$0.60	45d	1	0.77mi
503 N 11th St Apt 6 McAllen, TX	1.0	1.0	640	$700	$1.09	45d	1	0.81mi
503 N 11th St Apt 2 McAllen, TX	1.0	1.0	640	$700	$1.09	25d	1	0.81mi
917 N 21st St McAllen, TX	2.0	1.0	758	$1,200	$1.58	45d	1	0.90mi
615 W Dallas Ave Apt A-3 McAllen, TX	1.0	1.0	843	$1,850	$2.19	45d	1	0.91mi
615 W Dallas Ave Apt A-16 McAllen, TX	2.0	2.0	1069	$2,350	$2.20	23d	1	0.91mi
317 N 28th St McAllen, TX	2.0	1.0	950	$825	$0.87	25d	1	0.93mi
417 N 28th St Unit 8 McAllen, TX	2.0	1.5	910	$800	$0.88	25d	1	0.96mi
900 N 26th St McAllen, TX	1.0	1.0	700	$887	$1.27	45d	1	1.02mi
1213 N 15th St McAllen, TX	2.0	1.0	897	$900	$1.00	16d	1	1.11mi
1215 N 15th St McAllen, TX	2.0	1.0	983	$1,200	$1.22	16d	1	1.12mi
1016 Laurel Ave McAllen, TX	2.0	1.0	1124	$1,425	$1.27	16d	1	1.19mi
1300 N 15th St Unit 6 McAllen, TX	1.0	1.0	675	$700	$1.04	16d	1	1.19mi
2536 Pecan Blvd McAllen, TX	—	1.0	750	$900	$1.20	45d	1	1.33mi
2514 Pecan Blvd McAllen, TX	—	1.0	600	$900	$1.50	45d	1	1.33mi
912 N 3rd St McAllen, TX	2.0	2.0	950	$1,100	$1.16	45d	1	1.43mi

Listing history 18 events

1. 2026-06-21
   days on market $89,000 Active 122 DOM
2. 2026-06-18
   days on market $89,000 Active 119 DOM
3. 2026-06-17
   days on market $89,000 Active 118 DOM
4. 2026-06-16
   days on market $89,000 Active 117 DOM
5. 2026-06-15
   days on market $89,000 Active 116 DOM
6. 2026-06-14
   days on market $89,000 Active 114 DOM
7. 2026-06-10
   days on market $89,000 Active 111 DOM
8. 2026-06-09
   days on market $89,000 Active 110 DOM
9. 2026-06-08
   days on market $89,000 Active 109 DOM
10. 2026-06-07
    days on market $89,000 Active 108 DOM
11. 2026-06-05
    days on market $89,000 Active 105 DOM
12. 2026-06-03
    days on market $89,000 Active 104 DOM
13. 2026-06-02
    days on market $89,000 Active 103 DOM
14. 2026-06-01
    days on market $89,000 Active 102 DOM
15. 2026-05-31
    days on market $89,000 Active 101 DOM
16. 2026-05-31
    days on market $89,000 Active 100 DOM
17. 2026-04-15
    price $89,000 267-char remark

    Show marketing remark (267 chars)

    Great starter home centrally located in McAllen—perfect for a couple looking to own instead of rent! Priced under $100K, this property offers an affordable opportunity with a comfortable mortgage and a convenient location close to shopping, dining, and schools.

18. 2026-02-18
    listed $99,500 Active 267-char remark

    Show marketing remark (267 chars)

    Great starter home centrally located in McAllen—perfect for a couple looking to own instead of rent! Priced under $100K, this property offers an affordable opportunity with a comfortable mortgage and a convenient location close to shopping, dining, and schools.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $958 · $80/mo
• Projected year-2 tax: $1,629 · $136/mo
• Expected delta: +$671/yr (+$56/mo · 70.1%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥111°F today · 22 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 1 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,266
• − Mortgage interest: −$4,985
• − Property taxes: −$958
• − Insurance: −$445
• − Repairs & maintenance: −$901
• − Management: −$901
• − Depreciation: −$2,589
• Taxable income: $486
• Est. tax owed @ 24.0%: −$117
• After-tax cash flow: $1,780/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Mcallen ISD
• NCES district ID: 4829670
• Math proficiency: 34% ▼ -22.00%
• Reading proficiency: 45% ▼ -5.00%
• Median HH income: $40,805
• Composite: 33.16/100
• National rank: #5551
• State rank: #440 of 826 in TX

Livability — McAllen

• Score: 76/100
• State rank: #119
• US rank: #3771

Category grades

Amenities F Commute F Cost of living A+ Crime B+ Employment D Housing A+ Health & safety A+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: McAllen, TX
• County: Hidalgo County · 623,128 people
• City population: 144,650
• Metro: McAllen-Edinburg-Mission, TX
• Population (ZIP): 58,935
• Household income: $48,071
• Rent vs Own: 50.7% rent · 49.3% own
• Severe rent burden: 3043.0

Population outlook (Hidalgo County) Hauer SSP2

• Today (2025): 955,232 people
• By 2030: 1,009,774 · +5.7%
• By 2040: 1,120,332 · +17.3%
• By 2050: 1,225,036 · +28.2%
• By 2075: 1,439,189 · +50.7%
• By 2100: 1,533,429 · +60.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (89%)
• Race & ethnicity: Hispanic / Latino 89% Two or more races 32% White 8% Asian 2%
• Hispanic origin (detail): Mexican 85%
• Foreign-born: 28% · Canada, Vietnam
• Languages at home: 22% English-only · Spanish 76%

Political lean MEDSL · Hidalgo

• 2024 margin: Toss-up / Even · D 48.1% · R 51.0%
• 2008→2024 swing: -41.6pp toward R · 2008: 38.7pp · 2024: -2.9pp
• All cycles: 2024: R+2.9 2020: D+17.1 2016: D+40.5 2012: D+41.8 2008: D+38.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -69.99%
• Current HPI: 230.0213
• Rent YoY: ▲ 1.78%
• Metro: McAllen-Edinburg-Mission, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

-10.6% since first listed

2 events — show timeline

• 2026-04-15 Price Changed $89,000 MCALLENMLS
• 2026-02-18 Listed $99,500 MCALLENMLS

Property tax history

+5.1%/yr

Latest (2025): $958 · +16.7% YoY. Source: county tax records.