656-660 Wheatfield Dr

Venus, TX 76084

$519,000B

6 bd · 3.9 ba · 2,662 sqft · Built 2023 · MultiFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,124/mo
• Mortgage (P&I): −$2,722
• Tax + insurance: −$865
• HOA: −$63
• Vac / Maint / Mgmt: −$1,286
• Net cashflow: $1,188/mo
• Annual: $14,259/yr
• Cap rate: 9.04%
• Cash-on-cash: 9.81%
• DSCR: 1.44
• 1% rule: 1.18%
• Cash to close: $145,320

Investor read

• This is a 3 × 3-bed/2.0-bath units multifamily listed at $519k. Condition is rated good.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $396/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $519k).
• It's been on market 45 days — a 3% lower offer ($503k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $503k (3.0% below list) — sets the bar for market timing.
• In year one you build about $42k of equity ($4k loan paydown + $38k appreciation (7.3% local appreciation)).
• Location reads 70/100 on livability (#356 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety F.
• Midlothian ISD (suburban): math 53% / reading 52% proficiency, ranked #94 of 826 in TX (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: J A Vitovsky El (math 34% / reading 34%, grade F, #2,149 of 4,322 statewide, top 50%, 646 students, 60% FRL) — zoned schools average 60% FRL vs 22% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 34% at this address vs 52% district-wide (-18 pts) — the specific schools serving this property underperform the Midlothian ISD average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+2.4%/yr); 426 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 3,016 units permitted in Ellis County in 2024 (20 in 5+ unit buildings).
• Ellis County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 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 (7.3% appreciation + 2.4% rent growth), your $145k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$67k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 9.0% vs local median 3.0% in Venus — 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.
• At $6,124/mo this rent would consume 72% of the median local household income ($102k/yr) (locally 70% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 45 days. Have you received any prior offers? Is the seller open to a 3% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.