12308 Queen Dr

Balch Springs, TX 75180

$213,000D

3 bd · 1.5 ba · 1,143 sqft · Built 1971 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,905/mo
• Mortgage (P&I): −$1,117
• Tax + insurance: −$470
• HOA: −$0
• Vac / Maint / Mgmt: −$400
• Net cashflow: $-82/mo
• Annual: $-980/yr
• Cap rate: 5.83%
• Cash-on-cash: -1.64%
• DSCR: 0.93
• 1% rule: 0.89%
• Cash to close: $59,640

Investor read

• This is a 3-bed/1.5-bath single-family listed at $213k.
• At list price, monthly cash flow is $-82 ($-980/yr) — negative.
• To cash-flow at today's rent, offer at most $199k (6.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $190k (10.6% below list).
• It's been on market 76 days — a 6% lower offer ($200k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $190k (10.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#487 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety B+; Watch: employment D, crime F, amenities F.
• Dallas ISD (urban): math 31% / reading 36% proficiency, ranked #559 of 826 in TX (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Richard Lagow El (math 27% / reading 38%, grade F, #2,234 of 4,322 statewide, top 52%, 440 students, 98% FRL); Young Women'S Steam Academy At Balch Springs Middl (math 31% / reading 34%, grade F, #947 of 1,662 statewide, top 58%, 869 students, 91% FRL); H Grady Spruce H S (math 21% / reading 18%, grade F, #1,424 of 1,632 statewide, top 88%, 1,558 students, 96% FRL).
• Market conditions: 86 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 12,577 units permitted in Dallas County in 2024 (6,829 in 5+ unit buildings).
• Dallas County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 16y ago; this cycle's ask has dropped $16k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% 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 5.8% vs local median 4.7% in Balch Springs — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 34% of the median local income ($67k/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 76 days. Have you received any prior offers? Is the seller open to a 11% concession, seller financing, or rate buy-down credit?
• Built in 1971 — 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?
• 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?