5111 Matador Trl

Amarillo, TX 79109

$249,900D-

3 bd · 3.0 ba · 2,128 sqft · Built 1964 · SingleFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,905/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$460
• HOA: −$0
• Vac / Maint / Mgmt: −$400
• Net cashflow: $-265/mo
• Annual: $-3,180/yr
• Cap rate: 5.02%
• Cash-on-cash: -4.54%
• DSCR: 0.80
• 1% rule: 0.76%
• Cash to close: $69,972

Investor read

• This is a 3-bed/3.0-bath single-family listed at $250k.
• At list price, monthly cash flow is $-265 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $203k (18.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $191k (23.8% below list).
• It's been on market 92 days — a 9% lower offer ($227k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $191k (23.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#624 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities C-, crime F, commute F.
• Amarillo ISD (urban): math 44% / reading 41% proficiency, ranked #336 of 826 in TX (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Western Plateau El (math 47% / reading 52%, grade D, #865 of 4,322 statewide, top 21%, 431 students, 59% FRL); Bonham Middle (math 61% / reading 49%, grade B-, #248 of 1,662 statewide, top 15%, 867 students, 37% FRL); Amarillo H S (math 55% / reading 64%, grade C+, #275 of 1,632 statewide, top 19%, 2,170 students, 34% FRL).
• Zoned-school proficiency averages 55% at this address vs 42% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Amarillo ISD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising fast (+5.2%/yr); 157 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 45 units permitted in Randall County in 2024 (0 in 5+ unit buildings).
• Randall County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 6y ago; this cycle's ask has dropped $20k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• This rent runs 32% of the median local income ($70k/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 92 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1964 — 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 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?