201 Southland Dr

Burnet, TX 78611

$995D

8 bd · 4.0 ba · 750 sqft · Built 1978 · MultiFamily · Active · 59 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,938/mo
• Mortgage (P&I): −$5
• Tax + insurance: −$2
• HOA: −$0
• Vac / Maint / Mgmt: −$1,037
• Net cashflow: $3,894/mo
• Annual: $46,730/yr
• Cap rate: 4702.75%
• Cash-on-cash: 16773.05%
• DSCR: 747.31
• 1% rule: 496.28%
• Cash to close: $279

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $995.
• At list price, monthly cash flow is $4k ($47k/yr) — positive. Per door: $974/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $995).
• It's been on market 59 days — a 3% lower offer ($965) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $965 (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7 of loan paydown is wiped out by about $30 of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#101 in TX, #3,384 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools F, amenities F, commute F.
• Burnet CISD (rural): math 36% / reading 38% proficiency, ranked #465 of 826 in TX (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 552 active listings in the ZIP; solid renter incomes; 891 units permitted in Burnet County in 2024 (76 in 5+ unit buildings).
• Burnet County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 4y ago 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 + 3.0% rent growth), your $279 cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 54% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 6→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4702.7% vs local median 2.7% in Burnet — 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 $4,938/mo this rent would consume 73% of the median local household income ($81k/yr) (locally 218% 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 59 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?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.