2012 Princeton Ave

Farmersville, TX 75442

$226,000D

4 bd · 2.0 ba · 1,706 sqft · Built 2021 · SingleFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,078/mo
• Mortgage (P&I): −$1,185
• Tax + insurance: −$621
• HOA: −$35
• Vac / Maint / Mgmt: −$436
• Net cashflow: $-199/mo
• Annual: $-2,390/yr
• Cap rate: 5.24%
• Cash-on-cash: -3.78%
• DSCR: 0.83
• 1% rule: 0.92%
• Cash to close: $63,280

Investor read

• This is a 4-bed/2.0-bath single-family listed at $226k. Condition is rated fair.
• At list price, monthly cash flow is $-199 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $191k (15.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $208k (8.1% below list).
• It's been on market 45 days — a 3% lower offer ($219k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $191k (15.6% 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 $7k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#425 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: employment D, amenities F, commute F.
• Farmersville ISD (town): math 38% / reading 47% proficiency, ranked #298 of 826 in TX (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Farmersville Int (math 36% / reading 44%, grade F, #1,514 of 4,322 statewide, top 36%, 598 students, 62% FRL); Farmersville J H (math 42% / reading 46%, grade D, #512 of 1,662 statewide, top 32%, 327 students, 59% FRL); Farmersville H S (math 32% / reading 57%, grade F, #652 of 1,632 statewide, top 43%, 670 students, 53% FRL) — zoned schools average 58% FRL vs 42% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.8% of price.
• Market conditions: 418 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 19,194 units permitted in Collin County in 2024 (3,988 in 5+ unit buildings).
• Collin County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 4.0% in Farmersville — 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 45 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Paint — Walls and trim need fresh paint
• Minor: Flooring — Carpeted floors could be replaced with hardwood or tile