640-644 Wheatfield

Venus, TX 76084

$678,000C-

12 bd · 7.5 ba · 3,864 sqft · Built 2023 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,629/mo
• Mortgage (P&I): −$3,556
• Tax + insurance: −$2,022
• HOA: −$63
• Vac / Maint / Mgmt: −$1,392
• Net cashflow: $-404/mo
• Annual: $-4,844/yr
• Cap rate: 5.58%
• Cash-on-cash: -2.55%
• DSCR: 0.89
• 1% rule: 0.98%
• Cash to close: $189,840

Investor read

• This is a 3 × 4.0-bed/2.5-bath units multifamily listed at $678k. Condition is rated good.
• At list price, monthly cash flow is $-404 ($-5k/yr) — negative. Per door: $-135/mo.
• To cash-flow at today's rent, offer at most $607k (10.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $663k (2.2% below list).
• It's been on market 66 days — a 6% lower offer ($637k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $607k (10.5% below list) — sets the bar for cash-flow.
• In year one you build about $54k of equity ($5k loan paydown + $50k appreciation (7.3% local appreciation)).
• Location reads 70/100 on livability (#356 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: schools D+, amenities F, commute 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.
• Watch-outs: property tax is 3.1% of price.
• Market conditions: Rents rising (+2.4%/yr); 426 active listings in the ZIP; solid renter incomes; 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.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$87k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.6% vs local median 3.0% in Venus — 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.
• At $6,629/mo this rent would consume 78% of the median local household income ($102k/yr) (locally 70% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 66 days. Have you received any prior offers? Is the seller open to a 11% 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?
• 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?
• 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.