2095 Las Palmas Dr

San Benito, TX 78576

$1,975,000B

None bd · None ba · 23,816 sqft · Built 1994 · MultiFamily · Active · 386 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $26,900/mo
• Mortgage (P&I): −$10,357
• Tax + insurance: −$3,292
• HOA: −$0
• Vac / Maint / Mgmt: −$5,649
• Net cashflow: $7,602/mo
• Annual: $91,227/yr
• Cap rate: 10.91%
• Cash-on-cash: 16.50%
• DSCR: 1.73
• 1% rule: 1.36%
• Cash to close: $553,000

Investor read

• This is a 34×2bd/1ba + 2×1bd/1ba units multifamily listed at $1.98M. Condition is rated poor.
• At list price, monthly cash flow is $8k ($91k/yr) — positive. Per door: $211/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($27k rent vs $1.98M).
• It's been on market 386 days — a 12% lower offer ($1.74M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.74M (12.0% below list) — sets the bar for market timing.
• In year one you build about $139k of equity ($14k loan paydown + $125k appreciation (6.3% local appreciation)).
• Location reads 66/100 on livability (#621 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, schools D-, amenities F.
• San Benito CISD (suburban): math 14% / reading 27% proficiency, ranked #782 of 826 in TX (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 52 active listings in the ZIP; 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (6.3% appreciation + 3.0% rent growth), your $553k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$222k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.9% vs local median 3.7% in San Benito — 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 386 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.
• 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?
• 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)

• Major: kitchen cabinets — severely dated and worn
• Major: bathroom fixtures — basic and outdated
• Major: roof — visible wear and tear
• Major: exterior siding — weathered and in need of replacement
• Major: flooring — dated carpet
• Major: interior walls — bare walls, no trim