601-611 Canada St

Jacksonville, TX 75766

$585,000D-

None bd · None ba · 4,851 sqft · Built 1976 · MultiFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,105/mo
• Mortgage (P&I): −$3,068
• Tax + insurance: −$975
• HOA: −$0
• Vac / Maint / Mgmt: −$1,072
• Net cashflow: $-10/mo
• Annual: $-118/yr
• Cap rate: 6.27%
• Cash-on-cash: -0.07%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $163,800

Investor read

• This is a 6 × 2-bed/1-bath units multifamily listed at $585k.
• At list price, monthly cash flow is $-10 ($-118/yr) — negative. Per door: $-2/mo.
• To cash-flow at today's rent, offer at most $584k (0.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $510k (12.7% below list).
• It's been on market 92 days — a 9% lower offer ($532k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $510k (12.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#452 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D+, schools F, amenities F.
• Jacksonville ISD (town): math 31% / reading 39% proficiency, ranked #534 of 826 in TX (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 282 active listings in the ZIP; 39 units permitted in Cherokee County in 2024 (0 in 5+ unit buildings).
• 3 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.
• Climate carrying-cost: major flood risk; major wind risk, 72% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 2.0% in Jacksonville — 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

• 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 92 days. Have you received any prior offers? Is the seller open to a 13% 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?
• Built in 1976 — 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 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?