503-507 Pearl St · Denton, TX 76201

$395,000

9 bd · 3.0 ba · 2,392 sqft · MultiFamily · 126 Days on market

Built 1949 0.35 ac lot $165/sqft · at area comps Est $381k · at est. ↓ 1% since listing

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Why this score? — see what drove the C 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 +24.7/30.0
• DSCR +8.0/10.0
• 1% rule +6.4/10.0
• ARV discount +5.8/15.0
• Livability +4.4/5.0
• Schools +3.5/10.0
• Rent growth +2.6/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 3 units. confirmed

Listing remarks MLS

Opportunity knocks for investors or house-hackers looking to generate income from day one. This three-unit income-producing property offers immediate cash flow with $3,195 in total monthly rental income already in place. Positioned in a highly desirable location just minutes from the historic Denton Square and both local universities, the property benefits from strong and consistent rental demand driven by students, faculty, and professionals who want quick access to dining, entertainment, and campus life. The layout provides flexibility for multiple strategies. Investors can continue operating all three units as rentals for steady income, or an owner-occupant can live in one unit while the other two help offset the mortgage each month—essentially letting your tenants help pay for the property. With three separate units generating income, this property offers diversification under one roof while keeping management simple. The location near major Denton destinations further strengthens long-term rental appeal and future appreciation potential. Whether you're expanding your portfolio, entering the rental market, or looking for a smart live-and-invest opportunity, this property delivers a rare combination of location, flexibility, and built-in income. Income properties this close to the Square and universities don’t come along often—schedule your showing and explore the possibilities.

Key facts

• 0.35 acre lot
• 2 parking spots
• Built 1949

What this means for you Summary

Snapshot

• This is a 3 × 3-bed/1-bath units multifamily listed at $395k.

Deal economics

• At list price, monthly cash flow is $829 ($10k/yr) — positive. Per door: $276/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $395k).
• Recommended offer: $348k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.8% vs local median 3.4% in Denton — 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 88/100 on livability (#2 in TX, #210 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Denton ISD (urban): math 36% / reading 43% proficiency, ranked #383 of 826 in TX (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents flat; 67 active listings in the ZIP; lower-income renter base — watch delinquency; 10,531 units permitted in Denton County in 2024 (2,713 in 5+ unit buildings).
• At $4,505/mo this rent would consume 135% of the median local household income ($40k/yr) (locally 3598% 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 $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Denton County population projected at +66% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 126 days — a 12% lower offer ($348k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $347,600 (12.0% below list)

Questions for the listing agent

1. It's been on market 126 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. Built in 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
8. 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.
9. 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.
10. 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: 1.14% ✓
• Cap rate: 8.81%
• Cash-on-cash: 9.00%
• DSCR: 1.40
• GRM: 7.3

CMA / ARV

• ARV (median comp): $380,980
• List price: $395,000
• Delta: 3.68%
• Verdict: FAIR
• Comps: 13 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 0.5% rent growth · sell at horizon

5-year hold

• IRR: -5.5%
• Equity multiple: 0.80×
• Total profit: $-22,184
• Equity at exit: $58,896

10-year hold

• IRR: 0.8%
• Equity multiple: 1.05×
• Total profit: $5,810
• Equity at exit: $34,152

Cash invested: $110,600 (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 76201

• Home prices YoY: -11.3%
• Rents YoY: 0.5%
• Active inventory: 67
• Price-to-rent: 21.9×

Monthly cashflow live

• Estimated rent: $4,505 high
• Mortgage (P&I): −$2,071
• Tax est. 1.5%: −$494 /mo · $5,925/yr
• Insurance: −$165
• HOA: −$0
• Vacancy / Maint / Mgmt: −$946
• Net cashflow: $829

Break-even live

Break-even rent $3,455

Max offer price $395,000

Occupancy floor 77%

Sensitivity live

Price	-10% $1,102	-5% $966	+0% $829	+5% $693	+10% $556
Rent	-10% $473	-5% $651	+0% $829	+5% $1,007	+10% $1,185
Rate	-1.0pp $1,028	-0.5pp $930	base $829	+0.5pp $727	+1.0pp $623

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

Units	Beds	Baths	Est. rent
▸ 3× units	3	1	$4,506
Total (3 units)			$4,505

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: $98,750
• Closing costs: $11,850
• Reserves months: —
• Total cash needed: —

Listing history 15 events

1. 2026-06-18
   days on market $395,000 Active 126 DOM
2. 2026-06-17
   days on market $395,000 Active 125 DOM
3. 2026-06-16
   days on market $395,000 Active 124 DOM
4. 2026-06-15
   days on market $395,000 Active 123 DOM
5. 2026-06-13
   days on market $395,000 Active 121 DOM
6. 2026-06-09
   days on market $395,000 Active 117 DOM
7. 2026-06-08
   days on market $395,000 Active 116 DOM
8. 2026-06-07
   days on market $395,000 Active 115 DOM
9. 2026-06-04
   days on market $395,000 Active 112 DOM
10. 2026-06-03
    days on market $395,000 Active 111 DOM
11. 2026-06-02
    days on market $395,000 Active 110 DOM
12. 2026-06-01
    days on market $395,000 Active 109 DOM
13. 2026-05-31
    days on market $395,000 Active 108 DOM
14. 2026-03-17
    price $395,000 1427-char remark

    Show marketing remark (1427 chars)

    Opportunity knocks for investors or house-hackers looking to generate income from day one. This three-unit income-producing property offers immediate cash flow with $3,195 in total monthly rental income already in place. Positioned in a highly desirable location just minutes from the historic Denton Square and both local universities, the property benefits from strong and consistent rental demand driven by students, faculty, and professionals who want quick access to dining, entertainment, and campus life. The layout provides flexibility for multiple strategies. Investors can continue operating all three units as rentals for steady income, or an owner-occupant can live in one unit while the other two help offset the mortgage each month—essentially letting your tenants help pay for the property. With three separate units generating income, this property offers diversification under one roof while keeping management simple. The location near major Denton destinations further strengthens long-term rental appeal and future appreciation potential. Whether you're expanding your portfolio, entering the rental market, or looking for a smart live-and-invest opportunity, this property delivers a rare combination of location, flexibility, and built-in income. Income properties this close to the Square and universities don’t come along often—schedule your showing and explore the possibilities.

15. 2026-02-12
    listed $400,000 Active 1427-char remark

    Show marketing remark (1427 chars)

    Opportunity knocks for investors or house-hackers looking to generate income from day one. This three-unit income-producing property offers immediate cash flow with $3,195 in total monthly rental income already in place. Positioned in a highly desirable location just minutes from the historic Denton Square and both local universities, the property benefits from strong and consistent rental demand driven by students, faculty, and professionals who want quick access to dining, entertainment, and campus life. The layout provides flexibility for multiple strategies. Investors can continue operating all three units as rentals for steady income, or an owner-occupant can live in one unit while the other two help offset the mortgage each month—essentially letting your tenants help pay for the property. With three separate units generating income, this property offers diversification under one roof while keeping management simple. The location near major Denton destinations further strengthens long-term rental appeal and future appreciation potential. Whether you're expanding your portfolio, entering the rental market, or looking for a smart live-and-invest opportunity, this property delivers a rare combination of location, flexibility, and built-in income. Income properties this close to the Square and universities don’t come along often—schedule your showing and explore the possibilities.

ⓘ 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 FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥110°F today · 22 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 19% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $54,060
• − Mortgage interest: −$22,126
• − Property taxes: −$5,925
• − Insurance: −$1,975
• − Repairs & maintenance: −$4,325
• − Management: −$4,325
• − Depreciation: −$11,491
• Taxable income: $3,893
• Est. tax owed @ 24.0%: −$934
• After-tax cash flow: $9,016/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.

Schools (NCES district)

• District: Denton ISD
• NCES district ID: 4816740
• Math proficiency: 36% ▼ -18.00%
• Reading proficiency: 43% ▼ -9.00%
• Median HH income: $58,913
• Composite: 34.91/100
• National rank: #5075
• State rank: #383 of 826 in TX

Livability — Denton

• Score: 88/100
• State rank: #2
• US rank: #210

Category grades

Amenities A+ Commute A+ Cost of living A- Crime B Employment B- Housing A+ Health & safety B+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Denton, TX
• County: Denton County · 901,654 people
• City population: 127,990
• Metro: Dallas-Fort Worth-Arlington, TX
• Population (ZIP): 31,143
• Household income: $39,982
• Rent vs Own: 81.0% rent · 19.0% own
• Severe rent burden: 3598.0

Population outlook (Denton County) Hauer SSP2

• Today (2025): 1,053,010 people
• By 2030: 1,192,269 · +13.2%
• By 2040: 1,472,920 · +39.9%
• By 2050: 1,746,506 · +65.9%
• By 2075: 2,358,497 · +124.0%
• By 2100: 2,779,183 · +163.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.61)
• Race & ethnicity: White 58% Hispanic / Latino 18% Black 11% Two or more races 10% Asian 8%
• Hispanic origin (detail): Mexican 13%
• Common ancestry: Slovak 3% Lithuanian 3% Iranian 2%
• Foreign-born: 11% · Canada, China, South Korea
• Languages at home: 82% English-only · Spanish 9% Other Indo-European 4% Other Asian/Pacific 1%

Political lean MEDSL · Denton

• 2024 margin: R (+13.2) · D 42.7% · R 55.8% · Other 1.5%
• 2008→2024 swing: +11.0pp toward D · 2008: -24.2pp · 2024: -13.2pp
• All cycles: 2024: R+13.2 2020: R+8.1 2016: R+20.2 2012: R+31.7 2008: R+24.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.81%
• Current HPI: 334.7845
• Rent YoY: ▲ 0.50%
• Metro: Dallas-Fort Worth-Arlington, 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

-1.2% since first listed

2 events — show timeline

• 2026-03-17 Price Changed $395,000 NTREIS
• 2026-02-12 Listed $400,000 NTREIS