407 S Minnesota Rd · Palmview, TX 78572

$535,000

None bd · None ba · 4,940 sqft · MultiFamily · 493 Days on market

Built 2004 Fair condition 0.50 ac lot $108/sqft · 29% above area Est $413k · 29% over

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +19.8/30.0
• DSCR +6.3/10.0
• 1% rule +5.3/10.0
• Livability +2.9/5.0
• Rent growth +2.7/5.0
• Condition / age +2.2/5.0
• Schools +1.9/10.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 5 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Investment Opportunity: 5-Plex at 407 S Minnesota, Palmview, Mission This fully occupied 5-plex offers steady cash flow with 2-bed, 2-bath units. A solid, income-generating asset for investors seeking growth. All units are leased, ensuring immediate returns. The well-maintained property offers a tranquil environment with low tenant turnover, maximizing investment stability. Situated in a desirable area with easy access to local amenities, this 5-plex is an ideal addition to any real estate portfolio. Don’t miss out on this income-producing property.

Key facts

• Steady cash flow
• Low tenant turnover
• Desirable area

Tags

• STEADY CASH FLOW
• INCOME GENERATING ASSET
• LOW TENANT TURNOVER
• DESIRABLE AREA
• EASY ACCESS TO LOCAL AMENITIES
• INCOME PRODUCING PROPERTY

What this means for you Summary

Snapshot

• This is a 5 × 2-bed/2-bath units multifamily listed at $535k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $637 ($8k/yr) — positive. Per door: $127/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $535k).
• Recommended offer: $471k (12.0% below list) — sets the bar for market timing.
• Cap rate 7.7% vs local median 4.2% in Palmview — 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.

Location & tenants

• Location reads 57/100 on livability (#1,267 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime D, amenities F, commute F.
• La Joya ISD (suburban): math 18% / reading 29% proficiency, ranked #759 of 826 in TX (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Leo J Leo El (math 27% / reading 32%, grade F, #2,525 of 4,322 statewide, top 62%, 372 students, 92% FRL); Cesar Chavez Middle (math 25% / reading 35%, grade F, #1,056 of 1,662 statewide, top 65%, 666 students, 90% FRL); La Joya Palmview H S (math 20% / reading 37%, grade F, #1,157 of 1,632 statewide, top 72%, 2,155 students, 91% FRL) — zoned schools average 91% FRL vs 54% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents flat; 852 active listings in the ZIP; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).
• At $5,486/mo this rent would consume 121% of the median local household income ($54k/yr) (locally 1714% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 493 days — a 12% lower offer ($471k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: severe wind risk, 94% chance of damaging wind over 30y; severe wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $470,800 (12.0% below list)

Questions for the listing agent

1. It's been on market 493 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
9. 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?
10. 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.
11. 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.
12. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.03% ✓
• Cap rate: 7.72%
• Cash-on-cash: 5.10%
• DSCR: 1.23
• GRM: 8.1

CMA / ARV

• ARV (median comp): $413,294
• List price: $535,000
• Delta: 29.45%
• Verdict: OVERPRICED
• Comps: 3 within 2.0 mi

Projected returns pro-forma

-3.0% appreciation · 0.93% rent growth · sell at horizon

5-year hold

• IRR: -10.7%
• Equity multiple: 0.62×
• Total profit: $-57,255
• Equity at exit: $79,770

10-year hold

• IRR: -4.6%
• Equity multiple: 0.72×
• Total profit: $-41,376
• Equity at exit: $46,257

Cash invested: $149,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 78572

• Home prices YoY: -22.9%
• Rents YoY: 0.9%
• Active inventory: 852
• Price-to-rent: 40.6×

Monthly cashflow live

• Estimated rent: $5,486 medium
• Mortgage (P&I): −$2,806
• Tax est. 1.5%: −$669 /mo · $8,025/yr
• Insurance: −$223
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,152
• Net cashflow: $637

Break-even live

Break-even rent $4,680

Max offer price $535,000

Occupancy floor 83%

Sensitivity live

Price	-10% $1,006	-5% $822	+0% $637	+5% $452	+10% $267
Rent	-10% $203	-5% $420	+0% $637	+5% $853	+10% $1,070
Rate	-1.0pp $906	-0.5pp $773	base $637	+0.5pp $498	+1.0pp $357

5-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 5× units	2	2	$5,485
Total (5 units)			$5,486

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $133,750
• Closing costs: $16,050
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-22
   days on market $535,000 Active 493 DOM
2. 2026-06-18
   days on market $535,000 Active 490 DOM
3. 2026-06-17
   days on market $535,000 Active 489 DOM
4. 2026-06-16
   days on market $535,000 Active 488 DOM
5. 2026-06-15
   days on market $535,000 Active 487 DOM
6. 2026-06-14
   days on market $535,000 Active 485 DOM
7. 2026-06-13
   days on market $535,000 Active 484 DOM
8. 2026-06-10
   days on market $535,000 Active 482 DOM
9. 2026-06-09
   days on market $535,000 Active 481 DOM
10. 2026-06-08
    days on market $535,000 Active 480 DOM
11. 2026-06-07
    days on market $535,000 Active 479 DOM
12. 2026-06-05
    days on market $535,000 Active 476 DOM
13. 2026-06-03
    days on market $535,000 Active 475 DOM
14. 2026-06-02
    days on market $535,000 Active 474 DOM
15. 2026-06-01
    days on market $535,000 Active 473 DOM
16. 2026-05-31
    days on market $535,000 Active 472 DOM
17. 2026-05-31
    days on market $535,000 Active 471 DOM
18. 2025-02-13
    listed $535,000 Active 562-char remark

    Show marketing remark (562 chars)

    Investment Opportunity: 5-Plex at 407 S Minnesota, Palmview, Mission This fully occupied 5-plex offers steady cash flow with 2-bed, 2-bath units. A solid, income-generating asset for investors seeking growth. All units are leased, ensuring immediate returns. The well-maintained property offers a tranquil environment with low tenant turnover, maximizing investment stability. Situated in a desirable area with easy access to local amenities, this 5-plex is an ideal addition to any real estate portfolio. Don’t miss out on this income-producing property.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 8/10 Severe
• 🌡 Heat 9/10 Extreme 7 d/yr ≥112°F today · 22 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 94% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $65,832
• − Mortgage interest: −$29,968
• − Property taxes: −$8,025
• − Insurance: −$2,675
• − Repairs & maintenance: −$5,267
• − Management: −$5,267
• − Depreciation: −$15,564
• Taxable loss: −$933
• Est. tax savings @ 24.0%: +$224
• After-tax cash flow: $7,864/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 10 photos

Fair 45/100 Moderate rehab

This 5-plex requires moderate renovations to update the kitchen and bathrooms, and paint the interior walls. These updates will significantly increase its resale and rental value.

Repairs flagged

• Moderate kitchen cabinets — dated and worn
• Moderate bathroom fixtures — outdated and worn
• Minor exterior siding — some wear

Value-add opportunities

• Both update kitchen cabinets and fixtures — modernizes and increases appeal
• Both paint interior walls — enhances appearance and value
• Both replace bathroom fixtures — modernizes and increases appeal

Renovation cost estimate screening

Repair item	Severity	Est. cost
kitchen cabinets · dated and worn	Moderate	$3,000–15,000
bathroom fixtures · outdated and worn	Moderate	$3,000–15,000
exterior siding · some wear	Minor	$500–3,000
Total estimated repair cost · 3 items		$6,500–33,000

Value-add ROI direction

• Both update kitchen cabinets and fixtures — modernizes and increases appeal ↑
• Both paint interior walls — enhances appearance and value ↑
• Both replace bathroom fixtures — modernizes and increases appeal ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: La Joya ISD
• NCES district ID: 4826130
• Math proficiency: 18% ▼ -35.00%
• Reading proficiency: 29% ▼ -10.00%
• Median HH income: $27,845
• Composite: 18.65/100
• National rank: #8891
• State rank: #759 of 826 in TX

Livability — Palmview

• Score: 57/100
• State rank: #1267
• US rank: #22043

Category grades

Amenities F Commute F Cost of living A+ Crime D Employment F Housing A Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Palmview, TX
• County: Hidalgo County · 623,128 people
• Metro: McAllen-Edinburg-Mission, TX
• Population (ZIP): 78,024
• Household income: $54,298
• Rent vs Own: 29.0% rent · 71.0% own
• Severe rent burden: 1714.0

Population outlook (Hidalgo County) Hauer SSP2

• Today (2025): 955,232 people
• By 2030: 1,009,774 · +5.7%
• By 2040: 1,120,332 · +17.3%
• By 2050: 1,225,036 · +28.2%
• By 2075: 1,439,189 · +50.7%
• By 2100: 1,533,429 · +60.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Hispanic (85%)
• Race & ethnicity: Hispanic / Latino 85% Two or more races 47% White 12% Asian 2%
• Hispanic origin (detail): Mexican 80%
• Common ancestry: Slovak 1% Portuguese 0%
• Foreign-born: 28% · Canada, South Korea
• Languages at home: 22% English-only · Spanish 76%

Political lean MEDSL · Hidalgo

• 2024 margin: Toss-up / Even · D 48.1% · R 51.0%
• 2008→2024 swing: -41.6pp toward R · 2008: 38.7pp · 2024: -2.9pp
• All cycles: 2024: R+2.9 2020: D+17.1 2016: D+40.5 2012: D+41.8 2008: D+38.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -62.35%
• Current HPI: 209.3573
• Rent YoY: ▲ 0.93%
• Metro: McAllen-Edinburg-Mission, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

1 event — show timeline

• 2025-02-13 Listed $535,000 MCALLENMLS