6369 Tecate Dr Unit A&B

Reid Hope King, TX 78521

$226,000F

None bd · None ba · 1,896 sqft · Built 2006 · Condo · Pending · 254 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,406/mo
• Mortgage (P&I): −$1,185
• Tax + insurance: −$377
• HOA: −$0
• Vac / Maint / Mgmt: −$295
• Net cashflow: $-451/mo
• Annual: $-5,417/yr
• Cap rate: 3.90%
• Cash-on-cash: -8.56%
• DSCR: 0.62
• 1% rule: 0.62%
• Cash to close: $63,280

Investor read

• This is a condo listed at $226k. Condition is rated fair.
• At list price, monthly cash flow is $-451 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $161k (28.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $141k (37.8% below list).
• It's been on market 254 days — a 12% lower offer ($199k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $141k (37.8% 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 53/100 on livability (#1,440 in TX) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A; Watch: schools F, amenities F, commute F.
• Brownsville ISD (urban): math 20% / reading 34% proficiency, ranked #710 of 826 in TX (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+8.2%/yr); 365 active listings in the ZIP; 2 comparable units currently listed for rent nearby; lower-income renter base — watch delinquency; 2,326 units permitted in Cameron County in 2024 (503 in 5+ unit buildings).
• Cameron County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: severe wind risk, 99% 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.
• This rent runs 38% of the median local income ($45k/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 254 days. Have you received any prior offers? Is the seller open to a 38% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Landscaping — Overgrown vegetation and unkempt lawn need significant attention.
• Minor: Exterior paint — Neutral paint on exterior walls needs touch-up.
• Major: Kitchen appliances — No appliances in the kitchen, indicating a need for updates.
• Major: Bathroom fixtures — No visible fixtures or appliances in the bathroom, indicating a need for updates.