516 N Ave F

Denver City, TX 79323

$250,000D

6 bd · 6.0 ba · 3,700 sqft · Built 1965 · MultiFamily · Active · 208 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,305/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$417
• HOA: −$0
• Vac / Maint / Mgmt: −$484
• Net cashflow: $93/mo
• Annual: $1,119/yr
• Cap rate: 6.74%
• Cash-on-cash: 1.60%
• DSCR: 1.07
• 1% rule: 0.92%
• Cash to close: $70,000

Investor read

• This is a 2 × 3-bed/?-bath units multifamily listed at $250k. Condition is rated fair.
• At list price, monthly cash flow is $93 ($1k/yr) — positive. Per door: $47/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 $230k (7.8% below list).
• It's been on market 208 days — a 12% lower offer ($220k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $220k (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 $8k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#223 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, health & safety F.
• Denver City ISD (town): math 32% / reading 33% proficiency, ranked #547 of 826 in TX (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Dodson Pri (347 students, 73% FRL); William G Gravitt J H (math 27% / reading 32%, grade F, #1,077 of 1,662 statewide, top 66%, 364 students, 63% FRL); Denver City H S (math 37% / reading 42%, grade F, #821 of 1,632 statewide, top 53%, 521 students, 47% FRL).
• Market conditions: 39 active listings in the ZIP; 6 units permitted in Yoakum County in 2024 (0 in 5+ unit buildings).
• Yoakum County population projected at +48% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: extreme-heat days projected 6→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 208 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?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — poor condition
• Major: bathroom fixtures — poor condition
• Moderate: exterior siding — weathered and discolored
• Major: interior walls — dated wallpaper and peeling paint
• Major: landscaping — bare yard and overgrown vegetation