312 Prospect Dr

Trinity, TX 75862

$225,000D

6 bd · None ba · 1,601 sqft · Built 1946 · MultiFamily · Active · 234 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,225/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$375
• HOA: −$0
• Vac / Maint / Mgmt: −$467
• Net cashflow: $203/mo
• Annual: $2,434/yr
• Cap rate: 7.37%
• Cash-on-cash: 3.86%
• DSCR: 1.17
• 1% rule: 0.99%
• Cash to close: $63,000

Investor read

• This is a 2 × 3-bed/?-bath units multifamily listed at $225k. Condition is rated fair.
• At list price, monthly cash flow is $203 ($2k/yr) — positive. Per door: $101/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $222k (1.1% below list).
• It's been on market 234 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (12.0% below list) — sets the bar for market timing.
• In year one you build about $393 of equity ($2k loan paydown + $-1k appreciation (-0.5% local appreciation)).
• Location reads 54/100 on livability (#1,405 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B+, crime B; Watch: amenities F, commute F, employment F.
• Trinity ISD (rural): math 27% / reading 29% proficiency, ranked #682 of 826 in TX (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Lansberry El (math 35% / reading 33%, grade F, #2,149 of 4,322 statewide, top 50%, 570 students, 91% FRL); Trinity J H (math 21% / reading 25%, grade F, #1,327 of 1,662 statewide, top 81%, 280 students, 91% FRL); Trinity H S (math 22% / reading 32%, grade F, #1,204 of 1,632 statewide, top 75%, 350 students, 84% FRL) — zoned schools average 89% FRL vs 50% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 472 active listings in the ZIP; 1 units permitted in Trinity County in 2024 (0 in 5+ unit buildings).
• Trinity County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe wind risk, 92% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.4% vs local median 5.2% in Trinity — 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.

Questions for listing agent

• It's been on market 234 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?

Repairs flagged (vision-AI assessment)

• Major: roof — visible wear
• Major: exterior paint — moderate paint wear