196 Farrell Rd · Midway South, TX 78596

$499,000

None bd · None ba · 1,110 sqft · MultiFamily · 12 Days on market

Built 2025 Good condition 10,241 sqft lot $63/mo HOA · 6% of rent

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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 +11.5/30.0
• ARV discount +7.5/15.0
• Appreciation +4.7/10.0
• Condition / age +4.0/5.0
• 1% rule +3.5/10.0
• DSCR +3.4/10.0
• Livability +2.9/5.0
• Rent growth +2.5/5.0
• Schools +2.2/10.0

Multi-family units

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

Listing remarks

Excellent opportunity to own an income-producing fourplex featuring 4 spacious condo-style units in the growing Rio Meadows community in Weslaco, TX! Each unit offers 3 bedrooms, 2 bathrooms, bright open-concept layouts, generous living spaces, abundant natural light, and private back patios designed for comfortable everyday living. Units include a basic appliance package with refrigerator, stove, microwave, washer, and dryer for added convenience. Located inside a gated community just 1 block from BUS 83 and only 3 blocks from Expressway 83, providing quick access to HEB, Walgreens, Dollar General, Whataburger, Weslaco High School, and major Valley destinations. Perfect opportunity for inv

Key facts

• Gated community
• Private back patios
• 0.24 acre lot

Tags

• INCOME PRODUCING FOURPLEX
• GATED COMMUNITY
• PRIVATE BACK PATIOS

Property features AI

Finance

• HOA & community: Rio Meadows community association; Association fee $750 annually; POA mandatory; $450 transfer fee; Community features include sidewalks; Community contains 4 units

Exterior

• Parking: Detached covered parking; Carport for 8 vehicles; Total of 8 parking spaces
• Utilities: City sewer; Five separate water meters
• Home design: Outbuilding: None; Living area reported from blue prints; Green energy: Other
• Construction: Stucco construction; Composition shingle roof; Slab foundation; Built area approximately 1,110 (source: listing)
• Exterior features: Sprinkler system; Other exterior features; Paved road access; Sidewalks; Professional landscaping; Corner lot

Interior

• Kitchen: Microwave; Refrigerator; Stove/Range
• Flooring: Tile
• Heating & cooling: Central heating (electric); Central air conditioning (electric)
• Interior features: Walk-in closet(s)
• Laundry & utility: Washer; Dryer; Laundry closet; Washer/dryer connection; Electric water heater

What this means for you Summary

Snapshot

• This is a 4 × 3-bed/2-bath units multifamily listed at $499k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $-162 ($-2k/yr) — negative. Per door: $-40/mo.
• To cash-flow at today's rent, offer at most $476k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $424k (15.0% below list).
• Recommended offer: $424k (15.0% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 58/100 on livability (#1,201 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime B+; Watch: amenities F, commute F, employment F.
• Weslaco ISD (suburban): math 23% / reading 31% proficiency, ranked #705 of 826 in TX (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Sam Houston El (math 22% / reading 37%, grade F, #2,525 of 4,322 statewide, top 62%, 745 students, 87% FRL); Central Middle (math 33% / reading 40%, grade F, #786 of 1,662 statewide, top 48%, 974 students, 70% FRL); Weslaco H S (math 25% / reading 33%, grade F, #1,147 of 1,632 statewide, top 71%, 2,553 students, 73% FRL) — zoned schools average 77% FRL vs 59% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 711 active listings in the ZIP; 27 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 44% of comp listings sitting > 30 days — soft ceiling on asking rent; 7,378 units permitted in Hidalgo County in 2024 (641 in 5+ unit buildings).

Forward outlook

• In year one you build about $535 of equity ($3k loan paydown + $-3k appreciation (-0.6% local appreciation)).
• Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.

Recommended offer $424,000 (15.0% below list)

Questions for the listing agent

1. 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?
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. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
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: 0.85% ✗
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• GRM: 9.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-0.58% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -6.1%
• Equity multiple: 0.73×
• Total profit: $-38,347
• Equity at exit: $130,488

10-year hold

• IRR: 0.3%
• Equity multiple: 1.03×
• Total profit: $4,313
• Equity at exit: $145,773

Cash invested: $139,720 (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 78596

• Home prices YoY: -0.2%
• Active inventory: 711
• Price-to-rent: 39.2×

Monthly cashflow live

• Estimated rent: $4,240 medium
• Mortgage (P&I): −$2,617
• Tax est. 1.5%: −$624 /mo · $7,485/yr
• Insurance: −$208
• HOA: −$63
• Vacancy / Maint / Mgmt: −$890
• Net cashflow: $-162

Break-even live

Break-even rent $4,445

Max offer price $475,576

Occupancy floor 99%

Sensitivity live

Price	-10% $183	-5% $11	+0% $-162	+5% $-334	+10% $-507
Rent	-10% $-497	-5% $-329	+0% $-162	+5% $6	+10% $173
Rate	-1.0pp $89	-0.5pp $-35	base $-162	+0.5pp $-291	+1.0pp $-423

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

Units	Beds	Baths	Est. rent
▸ 4× units	3	2	$4,240
Total (4 units)			$4,240

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: $124,750
• Closing costs: $14,970
• Reserves months: —
• Total cash needed: —

Rent comps 27 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3086 Briggs Rd Unit B Midway South, TX	2.0	3.0	1050	$1,300	$1.24	25d	1	0.07mi
3707 U.S. 83 Business Unit 333 Donna, TX	3.0	2.0	960	$899	$0.94	45d	1	0.28mi
3707 U.S. 83 Business Unit 442 Donna, TX	3.0	2.0	960	$799	$0.83	45d	1	0.28mi
3707 U.S. 83 Business Unit 431 Donna, TX	3.0	2.0	960	$799	$0.83	25d	1	0.28mi
408 Sparrow Rd #4 Weslaco, TX	3.0	2.0	1185	$1,400	$1.18	16d	1	0.39mi
412 Sparrow Rd Unit 1 Weslaco, TX	2.0	2.0	1020	$1,250	$1.23	25d	1	0.41mi
503 Sparrow Rd Unit 1 Weslaco, TX	2.0	2.0	1000	$1,300	$1.30	23d	1	0.42mi
2613 Mockingbird Rd Unit D Weslaco, TX	2.0	2.0	973	$1,200	$1.23	45d	1	0.49mi
2608 Mockingbird Rd Unit 4 Weslaco, TX	3.0	2.0	1183	$1,380	$1.17	23d	1	0.52mi
2705 Woodpecker Rd Unit 2 Weslaco, TX	2.0	2.0	1020	$1,200	$1.18	25d	1	0.59mi
700 Oriole Rd #2 Weslaco, TX	2.0	2.0	1020	$1,250	$1.23	45d	1	0.61mi
2605 Woodpecker Rd Unit 4 Weslaco, TX	3.0	2.0	1183	$1,300	$1.10	25d	1	0.61mi
2609 Woodpecker Rd Unit 1 Weslaco, TX	2.0	2.0	1020	$1,250	$1.23	25d	1	0.61mi
2604 Woodpecker Rd Unit 2 Weslaco, TX	2.0	2.0	1068	$1,200	$1.12	16d	1	0.63mi
222 S Westgate Dr Apt 6 Weslaco, TX	1.0	1.0	700	$680	$0.97	45d	1	0.87mi
222 S Westgate Dr Weslaco, TX	1.0	1.0	700	$680	$0.97	46d	1	0.87mi
2211 Tomatillo Dr Weslaco, TX	3.0	2.0	1361	$2,200	$1.62	25d	1	1.01mi
1319 San Vicente Unit 1 Weslaco, TX	3.0	2.0	1100	$1,350	$1.23	25d	1	1.01mi
1322 Beverly Ave Unit 3 Weslaco, TX	3.0	2.0	1050	$1,350	$1.29	25d	1	1.01mi
1430 Mile 6 1/2 W Unit 6 1/2 Weslaco, TX	2.0	2.0	850	$877	$1.03	45d	1	1.02mi
1409 Beverly Ave Unit 1 Weslaco, TX	2.0	2.0	986	$1,050	$1.06	45d	1	1.05mi
1409 San Vicente Weslaco, TX	3.0	2.0	1150	$1,250	$1.09	46d	1	1.06mi
2013 Canyon Dr Unit 4 Weslaco, TX	3.0	2.0	1111	$1,200	$1.08	25d	1	1.28mi
1721 Harrison St Weslaco, TX	2.0	2.0	1005	$1,025	$1.02	45d	1	1.37mi
2607 E North Ave Donna, TX	1.0–2.0	1.0–2.0	1009	$1,125	$1.11	16d	7	1.38mi
2816 Brown St Unit B Weslaco, TX	2.0	2.0	1000	$950	$0.95	45d	1	1.46mi
2103 Taft St Unit 4 Weslaco, TX	3.0	2.0	1111	$1,095	$0.99	45d	1	1.46mi

HOA detail

• Monthly dues: $63 · $756/yr
• Likely covers: security

Listing history 1 events

1. 2026-05-14
   listed $499,000 Active 992-char remark

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

Taxation est. · year 1

• Rental income: $50,880
• − Mortgage interest: −$27,952
• − Property taxes: −$7,485
• − Insurance: −$2,495
• − Repairs & maintenance: −$4,070
• − Management: −$4,070
• − HOA: −$756
• − Depreciation: −$14,516
• Taxable loss: −$10,465
• Est. tax savings @ 24.0%: +$2,512
• After-tax cash flow: $569/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 · 5 photos

Good 80/100 Cosmetic rehab

This fourplex is in good condition with fresh paint and a fresh layout. It offers a great opportunity for investors looking to increase both resale and rental values through updates in landscaping, modern finishes, and smart home features.

Value-add opportunities

• Both Paint fresh throughout — Fresh paint enhances curb appeal and interior aesthetics
• Both Landscaping and curb appeal — Landscaping and curb appeal can significantly boost both resale and rental values
• Both Add modern fixtures and finishes — Modern finishes can attract more buyers and renters
• Both Update appliances — Modern appliances can attract more buyers and renters
• Both Add smart home features — Smart home features can increase both resale and rental values

Renovation cost estimate screening

Value-add ROI direction

• Both Paint fresh throughout — Fresh paint enhances curb appeal and interior aesthetics ↑
• Both Landscaping and curb appeal — Landscaping and curb appeal can significantly boost both resale and rental values ↑
• Both Add modern fixtures and finishes — Modern finishes can attract more buyers and renters ↑
• Both Update appliances — Modern appliances can attract more buyers and renters ↑
• Both Add smart home features — Smart home features can increase both resale and rental values ↑

ⓘ 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: Weslaco ISD
• NCES district ID: 4844960
• Math proficiency: 23% ▼ -29.00%
• Reading proficiency: 31% ▼ -9.00%
• Median HH income: $32,867
• Composite: 22.05/100
• National rank: #8196
• State rank: #705 of 826 in TX

Livability — Midway South

• Score: 58/100
• State rank: #1201
• US rank: #21023

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Midway South, TX
• Population (ZIP): 38,942

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 (86%)
• Race & ethnicity: Hispanic / Latino 86% Two or more races 38% White 13%
• Hispanic origin (detail): Mexican 82%
• Common ancestry: Slovak 1%
• Foreign-born: 17% · Canada
• Languages at home: 27% English-only · Spanish 72%

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: ▼ -0.58%
• Current HPI: 261.5117
• Rent YoY: —
• Metro: —
• 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

• 2026-05-14 Listed $499,000 MCALLENMLS