104 S 11th St

Garland, TX 75040

$2,350,000F

None bd · None ba · 7,360 sqft · Built 1983 · MultiFamily · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,210/mo
• Mortgage (P&I): −$12,324
• Tax + insurance: −$4,491
• HOA: −$0
• Vac / Maint / Mgmt: −$1,514
• Net cashflow: $-11,119/mo
• Annual: $-133,430/yr
• Cap rate: 0.62%
• Cash-on-cash: -20.28%
• DSCR: 0.10
• 1% rule: 0.31%
• Cash to close: $658,000

Investor read

• This is a 2×1bd/1ba + 2×2bd/1ba units multifamily listed at $2.35M.
• At list price, monthly cash flow is $-11k ($-133k/yr) — negative. Per door: $-3k/mo.
• To cash-flow at today's rent, offer at most $824k (64.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $721k (69.3% below list).
• It's been on market 127 days — a 12% lower offer ($2.07M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $721k (69.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $16k of loan paydown is wiped out by about $70k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#165 in TX, #4,447 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living A-; Watch: amenities C-, health & safety F.
• Garland ISD (suburban): math 27% / reading 37% proficiency, ranked #553 of 826 in TX (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Daugherty El (math 22% / reading 29%, grade F, #2,982 of 4,322 statewide, top 70%, 810 students, 94% FRL); B G Hudson Middle (math 33% / reading 42%, grade F, #736 of 1,662 statewide, top 45%, 1,207 students, 50% FRL); Sachse H S (math 46% / reading 53%, grade D, #509 of 1,632 statewide, top 34%, 2,997 students, 43% FRL).
• Market conditions: Rents flat; 233 active listings in the ZIP; 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.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $125k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.6% vs local median 3.5% in Garland — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $7,210/mo this rent would consume 116% of the median local household income ($75k/yr) (locally 1746% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 127 days. Have you received any prior offers? Is the seller open to a 69% 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?
• 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?