401 N 32nd St

Hidalgo, TX 78557

$299,900F

3 bd · 2.0 ba · 1,978 sqft · Built 2025 · Land · Active · 312 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,819/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$500
• HOA: −$25
• Vac / Maint / Mgmt: −$382
• Net cashflow: $-661/mo
• Annual: $-7,926/yr
• Cap rate: 3.65%
• Cash-on-cash: -9.44%
• DSCR: 0.58
• 1% rule: 0.61%
• Cash to close: $83,972

Investor read

• This is a 3-bed/2.0-bath land listed at $300k.
• At list price, monthly cash flow is $-661 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (31.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $182k (39.3% below list).
• It's been on market 312 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (39.3% below list) — sets the bar for 1% rule.
• In year one you build about $32k of equity ($2k loan paydown + $30k appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#488 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, employment F.
• Valley View ISD (suburban): math 24% / reading 38% proficiency, ranked #631 of 826 in TX (top 76%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 85% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Valley View South El (math 50% / reading 70%, grade B-, #409 of 4,322 statewide, top 10%, 341 students, 97% FRL); Valley View J H (math 23% / reading 35%, grade F, #1,103 of 1,662 statewide, top 67%, 483 students, 95% FRL); Valley View H S (math 12% / reading 47%, grade F, #1,112 of 1,632 statewide, top 70%, 1,170 students, 96% FRL).
• Market conditions: 98 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 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 since 2y ago; this cycle's ask has dropped $25k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$52k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 312 days. Have you received any prior offers? Is the seller open to a 39% 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 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?
• 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.