Wexford Plan

Allen, TX 75013

$228,660F

2 bd · 2.0 ba · 1,499 sqft · Built — · Condo · Active · 277 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,159/mo
• Mortgage (P&I): −$2,156
• Tax + insurance: −$685
• HOA: −$2,306
• Vac / Maint / Mgmt: −$453
• Net cashflow: $-3,442/mo
• Annual: $-41,298/yr
• Cap rate: -3.75%
• Cash-on-cash: -35.88%
• DSCR: -0.60
• 1% rule: 0.53%
• Cash to close: $115,107

Investor read

• This is a 2-bed/2.0-bath condo listed at $229k. Condition is rated poor.
• At list price, monthly cash flow is $-3k ($-41k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $216k (5.6% below list).
• It's been on market 277 days — a 12% lower offer ($201k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $201k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#34 in TX, #1,678 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: cost of living C-, commute F.
• Allen ISD (suburban): math 64% / reading 63% proficiency, ranked #22 of 826 in TX (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Watch-outs: property tax is 2.7% of price; HOA is 107% of rent.
• Market conditions: Rents soft (-3.0%/yr); 374 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 19,194 units permitted in Collin County in 2024 (3,988 in 5+ unit buildings).
• Collin County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate -3.8% vs local median 2.6% in Allen — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent is only 18% of the median local income ($147k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 277 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Exposed areas and uneven terrain suggest significant damage requiring full replacement.
• Major: exterior siding — Visible discoloration and damage indicate a need for full replacement or repair.
• Major: flooring — Worn and in need of replacement, likely due to age and lack of maintenance.
• Major: interior walls — Signs of wear and discoloration suggest a need for repainting or repair.