Chicory Plan

Argyle, TX 76226

$366,990F

3 bd · 2.5 ba · 1,857 sqft · Built — · MultiFamily · Active · 141 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,921/mo
• Mortgage (P&I): −$2,205
• Tax + insurance: −$701
• HOA: −$214
• Vac / Maint / Mgmt: −$613
• Net cashflow: $-812/mo
• Annual: $-9,743/yr
• Cap rate: 3.98%
• Cash-on-cash: -8.28%
• DSCR: 0.63
• 1% rule: 0.69%
• Cash to close: $117,711

Investor read

• This is a 3-bed/2.5-bath multifamily listed at $367k. Condition is rated excellent.
• At list price, monthly cash flow is $-812 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $303k (17.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $292k (20.4% below list).
• It's been on market 141 days — a 12% lower offer ($323k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $292k (20.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#658 in TX) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Argyle ISD (rural): math 71% / reading 67% proficiency, ranked #8 of 826 in TX (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+1.6%/yr); 1110 active listings in the ZIP; 38 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 10,531 units permitted in Denton County in 2024 (2,713 in 5+ unit buildings).
• Denton County population projected at +66% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.0% vs local median 3.2% in Argyle — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 141 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• 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.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• 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.