406 SE 6th St Unit A-D

Andrews, TX 79714

$319,500C

9 bd · 3.9 ba · 3,552 sqft · Built 1982 · MultiFamily · Active · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,617/mo
• Mortgage (P&I): −$1,675
• Tax + insurance: −$532
• HOA: −$0
• Vac / Maint / Mgmt: −$760
• Net cashflow: $649/mo
• Annual: $7,793/yr
• Cap rate: 8.73%
• Cash-on-cash: 8.71%
• DSCR: 1.39
• 1% rule: 1.13%
• Cash to close: $89,460

Investor read

• This is a 3 × 3-bed/1.3-bath units multifamily listed at $320k. Condition is rated fair.
• At list price, monthly cash flow is $649 ($8k/yr) — positive. Per door: $216/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $320k).
• It's been on market 159 days — a 12% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $281k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#151 in TX, #4,199 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, amenities F, commute F.
• Andrews ISD (town): math 41% / reading 42% proficiency, ranked #311 of 826 in TX (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 208 active listings in the ZIP; 72 units permitted in Andrews County in 2024 (48 in 5+ unit buildings).
• Andrews County population projected at +90% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $3,617/mo this rent would consume 60% of the median local household income ($72k/yr) (locally 277% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 159 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: Exterior siding — Significant wear and tear
• Major: Exterior wood — Exposed and damaged
• Major: Ground leveling — Uneven and needs repair