1713 Highland Dr W

Keller, TX 76262

$690,000F

5 bd · 3.5 ba · 2,760 sqft · Built 2025 · Land · Active · 191 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,488/mo
• Mortgage (P&I): −$3,618
• Tax + insurance: −$509
• HOA: −$0
• Vac / Maint / Mgmt: −$733
• Net cashflow: $-1,372/mo
• Annual: $-16,462/yr
• Cap rate: 3.91%
• Cash-on-cash: -8.52%
• DSCR: 0.62
• 1% rule: 0.51%
• Cash to close: $193,200

Investor read

• This is a 5-bed/3.5-bath land listed at $690k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $448k (35.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $349k (49.4% below list).
• It's been on market 191 days — a 12% lower offer ($607k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $349k (49.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#15 in TX, #1,130 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+; Watch: commute F, cost of living F.
• Keller ISD (urban): math 50% / reading 54% proficiency, ranked #91 of 826 in TX (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Florence El (math 57% / reading 67%, grade B, #321 of 4,322 statewide, top 8%, 489 students, 11% FRL); Keller Middle (math 68% / reading 70%, grade A, #69 of 1,662 statewide, top 4%, 921 students, 10% FRL); Keller H S (math 68% / reading 83%, grade A-, #78 of 1,632 statewide, top 5%, 3,089 students, 8% FRL).
• Zoned-school proficiency averages 69% at this address vs 52% district-wide (+17 pts) — the actual schools serving this property are materially stronger than the Keller ISD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents flat; 384 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 18,938 units permitted in Tarrant County in 2024 (8,336 in 5+ unit buildings).
• Tarrant County population projected at +41% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 5y ago; this cycle's ask has dropped $45k (6%) 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→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.9% vs local median 2.4% in Keller — 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.

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 191 days. Have you received any prior offers? Is the seller open to a 49% concession, seller financing, or rate buy-down credit?
• 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 A-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?
• 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?
• 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.
• 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.