#225 Plan

Fort Worth, TX 76040

$225,000F

3 bd · 2.0 ba · 1,980 sqft · Built — · SingleFamily · Active · 573 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,891/mo
• Mortgage (P&I): −$2,057
• Tax + insurance: −$654
• HOA: −$0
• Vac / Maint / Mgmt: −$397
• Net cashflow: $-1,217/mo
• Annual: $-14,609/yr
• Cap rate: 2.57%
• Cash-on-cash: -13.30%
• DSCR: 0.41
• 1% rule: 0.48%
• Cash to close: $109,851

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k. Condition is rated excellent.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (3.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (16.0% below list).
• It's been on market 573 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (16.0% below list) — sets the bar for 1% rule.
• 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 (#49 in TX, #1,954 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime F.
• Hurst-Euless-Bedford ISD (suburban): math 47% / reading 50% proficiency, ranked #193 of 826 in TX (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wilshire El (math 47% / reading 42%, grade F, #1,155 of 4,322 statewide, top 29%, 641 students, 64% FRL); Harwood J H (math 57% / reading 65%, grade B+, #145 of 1,662 statewide, top 9%, 1,038 students, 45% FRL); Trinity H S (math 62% / reading 17%, grade F, #821 of 1,632 statewide, top 53%, 2,665 students, 56% FRL).
• Watch-outs: property tax is 2.6% of price.
• Market conditions: Rents rising (+1.6%/yr); 148 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; 18,938 units permitted in Tarrant County in 2024 (8,336 in 5+ unit buildings).
• Tarrant County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.6% vs local median 4.0% in Fort Worth — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 31% of the median local income ($73k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 573 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• Crime grade is F 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?
• 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?