1308 Miller Ave

Donna, TX 78537

$900,000B+

None bd · None ba · 3,768 sqft · Built 2005 · MultiFamily · Active · 163 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,185/mo
• Mortgage (P&I): −$4,720
• Tax + insurance: −$2,115
• HOA: −$0
• Vac / Maint / Mgmt: −$2,349
• Net cashflow: $2,001/mo
• Annual: $24,015/yr
• Cap rate: 8.96%
• Cash-on-cash: 9.53%
• DSCR: 1.42
• 1% rule: 1.24%
• Cash to close: $252,000

Investor read

• This is a 6×1bd/1ba + 8×2bd/1ba units multifamily listed at $900k. Condition is rated average.
• At list price, monthly cash flow is $2k ($24k/yr) — positive. Per door: $143/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $900k).
• It's been on market 163 days — a 12% lower offer ($792k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $792k (12.0% below list) — sets the bar for market timing.
• In year one you build about $96k of equity ($6k loan paydown + $90k appreciation (10.0% local appreciation)).
• Location reads 54/100 on livability (#1,411 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime F, amenities F, commute F.
• Donna ISD (suburban): math 11% / reading 18% proficiency, ranked #821 of 826 in TX (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: A M Ochoa El (math 12% / reading 12%, grade F, #4,207 of 4,322 statewide, top 98%, 360 students, 94% FRL); W A Todd Middle (math 9% / reading 22%, grade F, #1,556 of 1,662 statewide, top 94%, 693 students, 92% FRL); Donna H S (math 16% / reading 21%, grade F, #1,436 of 1,632 statewide, top 88%, 2,095 students, 92% FRL) — zoned schools average 93% FRL vs 48% district-wide (44 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 432 active listings in the ZIP; 38 comparable units currently listed for rent nearby; rentals lingering (median 93d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 63% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• Hidalgo County population projected at +28% 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.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $252k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$155k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.0% vs local median 3.0% in Donna — 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

• It's been on market 163 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?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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)

• Minor: Exterior walls — There are some visible signs of wear and tear, such as discoloration and minor cracks.
• Minor: Interior walls — There are some visible signs of wear and tear, such as discoloration and minor cracks.