318 Teakwood Ln

Lewisville, TX 75067

$225,500D-

2 bd · 1.0 ba · 1,074 sqft · Built 1983 · SingleFamily · Pending · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,677/mo
• Mortgage (P&I): −$1,183
• Tax + insurance: −$434
• HOA: −$0
• Vac / Maint / Mgmt: −$352
• Net cashflow: $-292/mo
• Annual: $-3,500/yr
• Cap rate: 4.74%
• Cash-on-cash: -5.54%
• DSCR: 0.75
• 1% rule: 0.74%
• Cash to close: $63,140

Investor read

• This is a 2-bed/1.0-bath single-family listed at $226k.
• At list price, monthly cash flow is $-292 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $174k (22.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $168k (25.6% below list).
• It's been on market 40 days — a 3% lower offer ($219k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $168k (25.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#440 in TX) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A, crime B+; Watch: commute D+, amenities F, health & safety F.
• Lewisville ISD (suburban): math 49% / reading 54% proficiency, ranked #109 of 826 in TX (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Southridge El (math 25% / reading 32%, grade F, #2,706 of 4,322 statewide, top 63%, 619 students, 84% FRL); Marshall Durham Middle (math 18% / reading 26%, grade F, #1,360 of 1,662 statewide, top 83%, 715 students, 78% FRL); Lewisville H S (math 33% / reading 41%, grade F, #897 of 1,632 statewide, top 57%, 4,240 students, 67% FRL) — zoned schools average 76% FRL vs 26% district-wide (51 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 29% at this address vs 52% district-wide (-22 pts) — the specific schools serving this property underperform the Lewisville ISD average; the district grade overstates school quality for this exact location.
• Market conditions: Rents flat; 223 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 10,531 units permitted in Denton County in 2024 (2,713 in 5+ unit buildings).
• Denton County population projected at +66% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 7 sale attempts since 23y ago; this cycle's ask has dropped $14k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $94k; list at $226k implies a 140% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wind risk, 26% 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 4.7% vs local median 3.1% in Lewisville — 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

• 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 40 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.