3 bd · 1.0 ba ·
1,196 sqft ·
Built 1928
· SingleFamily
· Pending
· 14 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,861/mo
Mortgage (P&I)
−$682
Tax + insurance
−$399
HOA
−$0
Vac / Maint / Mgmt
−$391
Net cashflow
$389/mo
Annual
$4,672/yr
Cap rate
9.89%
Cash-on-cash
12.83%
DSCR
1.57
1% rule
1.43%
Cash to close
$36,400
Investor read
This is a 3-bed/1.0-bath single-family listed at $130k.
At list price, monthly cash flow is $389 ($5k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($2k rent vs $130k).
Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
Local home prices are declining (-3.0%/yr); year-one equity from $899 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
Location reads 81/100 on livability (#24 in TX, #1,380 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
Zoned schools: Harrell Budd El (math 32% / reading 32%, grade F, #2,268 of 4,322 statewide, top 55%, 405 students, 94% FRL).
Watch-outs: property tax is 3.2% of price; built in 1928 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents rising (+3.7%/yr); 58 active listings in the ZIP; 32 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
Dallas County population projected at +35% 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 (-3.0% appreciation + 3.7% rent growth), your $36k cash investment doubles in ~9 years — after that, you're playing with house money.
Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 9.9% vs local median 2.3% in Dallas — 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.
This rent runs 43% of the median local income ($52k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
Questions for listing agent
Built in 1928 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
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.
What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.
CashFlowRE · CFR-CFSV3R9M45K1VW
· Data 3 weeks agocashflowre.app · 2026-05-29