8001 Rothington Rd Unit 31-37

Dallas, TX 75227

$580,000D

9 bd · 6.0 ba · 4,084 sqft · Built 1983 · MultiFamily · Active · 242 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,293/mo
• Mortgage (P&I): −$3,042
• Tax + insurance: −$967
• HOA: −$0
• Vac / Maint / Mgmt: −$1,112
• Net cashflow: $173/mo
• Annual: $2,079/yr
• Cap rate: 6.65%
• Cash-on-cash: 1.28%
• DSCR: 1.06
• 1% rule: 0.91%
• Cash to close: $162,400

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $580k. Condition is rated fair.
• At list price, monthly cash flow is $173 ($2k/yr) — positive. Per door: $58/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $529k (8.7% below list).
• It's been on market 242 days — a 12% lower offer ($510k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $510k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#24 in TX, #1,380 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Frank Guzick El (math 15% / reading 24%, grade F, #3,583 of 4,322 statewide, top 86%, 636 students, 96% FRL); Harold Wendell Lang Sr Middle (math 19% / reading 19%, grade F, #1,466 of 1,662 statewide, top 89%, 814 students, 96% FRL); Skyline H S (math 19% / reading 34%, grade F, #1,228 of 1,632 statewide, top 76%, 4,166 students, 72% FRL) — zoned schools at 88% FRL track the district average.
• Market conditions: Rents soft (-0.4%/yr); 181 active listings in the ZIP; 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
• Dallas County population projected at +35% 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; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.7% vs local median 2.3% in Dallas — 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 $5,293/mo this rent would consume 99% of the median local household income ($64k/yr) (locally 1679% 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 242 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — Severe wear and tear.
• Major: bathroom fixtures — Outdated and worn-out appearance.
• Major: landscaping — Overgrown vegetation and cluttered yard need attention.