Is 416 E Acacia St in Alamo, TX a good investment?

CashFlowRE grades it C- with a 7.6% cap rate and $503/mo modeled cash flow at a $469,900 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 416 E Acacia St?

The modeled cap rate is 7.6% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $4,800/month, from CashFlowRE's rent model.

Multi-family

C- Composite 51.59

Why this score? — see what drove the C- 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 +19.1/30.0
ARV discount +9.4/15.0
DSCR +6.0/10.0
1% rule +5.2/10.0
Condition / age +4.8/5.0
Livability +3.1/5.0
Rent growth +2.5/5.0
Schools +1.4/10.0
Appreciation +0.0/10.0

$469,900

416 E Acacia St · Alamo, TX 78516

None bd · None ba · 3,746 sqft · MultiFamily · 290 Days on market

Built 2025 Excellent condition 10,454 sqft lot $125/sqft · at area comps Est $491k · at est. $42/mo HOA · 4% of rent ↓ 5% since listing

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

This exceptional property presents an attractive investment opportunity, characterized by robust rental income potential. Constructed in 2025, the four-unit building features two bedrooms and two bathrooms in each unit. Each apartment is equipped with essential appliances, including a stove/range with a smooth top, refrigerator, washer, dryer, and microwave oven. Strategically located near shopping centers, dining options, and educational institutions, these pet-friendly apartments cater to a diverse range of lifestyles. The property offers the added benefit of eight covered parking spaces.

Key facts

Four unit building
Essential appliances
0.24 acre lot

What this means for you Summary

Snapshot

This is a multifamily listed at $470k. Condition is rated excellent.

Deal economics

At list price, monthly cash flow is $503 ($6k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($5k rent vs $470k).
Recommended offer: $414k (12.0% below list) — sets the bar for market timing.
Cap rate 7.6% vs local median 3.7% in Alamo — 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.

Location & tenants

Location reads 62/100 on livability (#916 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute D+, crime F, amenities F.
Donna ISD (suburban): math 11% / reading 18% proficiency, ranked #821 of 826 in TX (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
Zoned schools: Capt D Salinas Ii El (math 16% / reading 17%, grade F, #3,946 of 4,322 statewide, top 92%, 416 students, 96% FRL); Dora M Sauceda Middle (math 12% / reading 23%, grade F, #1,507 of 1,662 statewide, top 91%, 660 students, 100% FRL); Donna North H S (math 8% / reading 17%, grade F, #1,539 of 1,632 statewide, top 95%, 2,091 students, 100% FRL) — zoned schools average 98% FRL vs 48% district-wide (50 pts higher); higher-poverty schools than district average — tighter screening recommended.
Market conditions: 421 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 73d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% 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).
At $4,800/mo this rent would consume 108% of the median local household income ($53k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
Hidalgo County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

It's been on market 290 days — a 12% lower offer ($414k) is reasonable based on typical stale-listing flexibility.

Recommended offer $413,512 (12.0% below list)

Questions for the listing agent

It's been on market 290 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
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?
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.
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: 1.02% ✓
Cap rate: 7.58%
Cash-on-cash: 4.58%
DSCR: 1.20
GRM: 8.2

CMA / ARV

ARV (median comp): $490,816
List price: $469,900
Delta: -4.26%
Verdict: FAIR
Comps: 8 within 1.0 mi

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
425 E Acacia St	0.04mi	—/—	4,128 (+10%)	4mo	$465,000	$113	78
428 Acacia St	0.18mi	—/—	4,172 (+11%)	0mo	$505,000	$121	72
444 E Acacia St	0.10mi	—/—	4,266 (+14%)	11mo	$515,000	$121	63
440 E Acacia Ave E	0.18mi	—/—	4,128 (+10%)	19mo	$515,000	$125	58
421 E Acacia St	0.18mi	—/—	4,266 (+14%)	14mo	$480,000	$113	56
437 E Acacia Ave E	0.18mi	—/—	4,172 (+11%)	21mo	$525,000	$126	55
420 Acacia St	0.18mi	—/—	4,266 (+14%)	19mo	$480,000	$113	52

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

IRR: -9.1%
Equity multiple: 0.67×
Total profit: $-44,033
Equity at exit: $70,064

10-year hold

IRR: 0.4%
Equity multiple: 1.02×
Total profit: $3,277
Equity at exit: $40,628

Cash invested: $131,572 (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 →

Buyer's market Market conditions within 1.0 mi — comparable homes for sale

Active competition Active MLS

For sale now: 5 active · 1 under contract
Months of supply: 15.0 mo (7%/mo absorbed)
Median asking: $469,900 ($119/sqft)
Median days on market: 187 d
This list price: 40% of active listings are priced below it
ARV vs active asking: +10.4% above current asking $/sqft

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 78516

Home prices YoY: -6.5%
Active inventory: 421
Price-to-rent: 32.6×

Monthly cashflow live

Estimated rent: $4,800 high interval (Pro) →
Mortgage (P&I): −$2,464
Tax est. 1.5%: −$587 /mo · $7,048/yr
Insurance: −$196
HOA: −$42
Lot rent: −$0
Vacancy / Maint / Mgmt: −$1,008
Net cashflow: $503

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

Units	Beds	Baths	Est. rent
▸ 4× units	2	2	$4,800
#1	2	2	$1,200
#2	2	2	$1,200
#3	2	2	$1,200
#4	2	2	$1,200
Total (4 units)			$4,800

Break-even live

Break-even rent $4,164

Max offer price $469,900

Occupancy floor 85%

Sensitivity live

Price	-10% $827	-5% $665	+0% $503	+5% $340	+10% $178
Rent	-10% $123	-5% $313	+0% $503	+5% $692	+10% $882
Rate	-1.0pp $739	-0.5pp $622	base $503	+0.5pp $381	+1.0pp $257

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: $117,475
Closing costs: $14,097
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
413 E Acacia Ave Unit 2 Alamo, TX	2.0	2.0	4266	$1,025	$0.24	72d	1	0.05mi
445 E Acacia Ave Unit 1 Alamo, TX	3.0	2.0	4266	$1,100	$0.26	72d	1	0.11mi
1229 Country Club Dr Unit 3 Alamo, TX	2.0	2.0	4046	$1,025	$0.25	15d	1	1.11mi

Listing history 50 events

2026-08-08

days on market $469,900 Active 290 DOM
2026-08-07

days on market $469,900 Active 289 DOM
2026-08-06

days on market $469,900 Active 288 DOM
2026-08-05

days on market $469,900 Active 287 DOM
2026-08-04

days on market $469,900 Active 286 DOM
2026-08-03

days on market $469,900 Active 285 DOM
2026-07-31

days on market $469,900 Active 282 DOM
2026-07-30

days on market $469,900 Active 281 DOM
2026-07-29

days on market $469,900 Active 280 DOM
2026-07-27

days on market $469,900 Active 278 DOM
2026-07-25

days on market $469,900 Active 276 DOM
2026-07-23

days on market $469,900 Active 274 DOM
2026-07-22

days on market $469,900 Active 273 DOM
2026-07-21

days on market $469,900 Active 272 DOM
2026-07-18

days on market $469,900 Active 269 DOM
2026-07-16

days on market $469,900 Active 267 DOM
2026-07-16

days on market $469,900 Active 266 DOM
2026-07-14

days on market $469,900 Active 265 DOM
2026-07-13

days on market $469,900 Active 264 DOM
2026-07-12

days on market $469,900 Active 263 DOM
2026-07-11

days on market $469,900 Active 262 DOM
2026-07-10

days on market $469,900 Active 261 DOM
2026-07-09

days on market $469,900 Active 260 DOM
2026-07-07

days on market $469,900 Active 258 DOM
2026-07-06

days on market $469,900 Active 257 DOM
2026-07-05

days on market $469,900 Active 256 DOM
2026-07-04

days on market $469,900 Active 255 DOM
2026-07-03

days on market $469,900 Active 254 DOM
2026-07-02

days on market $469,900 Active 253 DOM
2026-07-01

days on market $469,900 Active 252 DOM
2026-06-30

days on market $469,900 Active 251 DOM
2026-06-29

days on market $469,900 Active 250 DOM
2026-06-28

days on market $469,900 Active 249 DOM
2026-06-28

days on market $469,900 Active 248 DOM
2026-06-27

days on market $469,900 Active 247 DOM
2026-06-25

days on market $469,900 Active 245 DOM
2026-06-23

days on market $469,900 Active 243 DOM
2026-06-21

days on market $469,900 Active 242 DOM
2026-06-18

days on market $469,900 Active 239 DOM
2026-06-17

days on market $469,900 Active 238 DOM
2026-06-16

days on market $469,900 Active 237 DOM
2026-06-15

days on market $469,900 Active 236 DOM
2026-06-14

days on market $469,900 Active 234 DOM
2026-06-13

days on market $469,900 Active 233 DOM
2026-06-10

days on market $469,900 Active 231 DOM
2026-06-09

days on market $469,900 Active 230 DOM
2026-06-08

days on market $469,900 Active 229 DOM
2026-06-07

days on market $469,900 Active 228 DOM
2026-06-05

days on market $469,900 Active 225 DOM
2026-06-03

days on market $469,900 Active 224 DOM

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

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $57,600
− Mortgage interest: −$26,322
− Property taxes: −$7,048
− Insurance: −$2,350
− Repairs & maintenance: −$4,608
− Management: −$4,608
− HOA: −$504
− Depreciation: −$13,670
Taxable loss: −$1,510

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$362
After-tax cash flow: $6,394/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 · 12 photos

Excellent 95/100 None rehab

This four-unit property is in excellent condition with modern amenities and a well-maintained exterior. It offers a strong investment opportunity with potential for further value enhancement through landscaping and smart home features.

Value-add opportunities

Both Landscaping and curb appeal improvements — Enhances the property's curb appeal and can attract more tenants. ↑
Both Addition of smart home features — Improves convenience and can attract tech-savvy tenants. ↑
Both Update lighting fixtures — Modernizes the property and can improve energy efficiency. ↑

F Composite school gradezoned avg 14/100

Zoned Schools

Elementary Capt D Salinas Ii El F TX #3,946/4,322 Nat'l #35,887/41,679 Middle A P Solis Middle F TX #1,602/1,662 Nat'l #12,913/14,009 High Donna North H S F TX #1,539/1,632 Nat'l #15,707/17,239

Schools (NCES district)

District: Donna ISD
NCES district ID: 4817390
Math proficiency: 11% ▼ -30.00%
Reading proficiency: 18% ▼ -13.00%
Median HH income: $27,330
Composite: 11.16/100
National rank: #9728
State rank: #821 of 826 in TX

C Composite livability gradescore 62/100

Livability — Alamo

Score: 62/100
State rank: #916
US rank: #16356

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place: Alamo, TX
County: Hidalgo County · 955,232 people
City population: 34,370
Metro: McAllen-Edinburg-Mission, TX
Population (ZIP): 34,370
Household income: $53,229
Rent vs Own: 24.5% rent · 75.5% own
Severe rent burden: 7% of renters

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 (89%)
Race & ethnicity: Hispanic / Latino 89% Two or more races 40% White 10% Black 1%
Hispanic origin (detail): Mexican 86%
Foreign-born: 29% · Canada
Languages at home: 24% English-only · Spanish 76%

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: ▼ -15.56%
Current HPI: 225.4438
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
#8 Exxon Mobil Spring $349.6B #16 Chevron Houston $202.8B #28 Phillips 66 Houston $145.5B #34 Valero Energy San Antonio $124.0B #53 Energy Transfer Dallas $82.7B #75 ConocoPhillips Houston $57.0B #78 Enterprise Products Partners Houston $56.2B #92 Plains GP Holdings Houston $50.1B #134 HF Sinclair Dallas $29.6B #142 Occidental Petroleum Houston $26.3B #173 Targa Resources Houston $19.4B #188 Cheniere Energy Houston $17.6B #239 Kinder Morgan Houston $15.3B #419 APA Corporation Houston $8.6B #393 Cabot Oil & Gas Houston $7.9B #455 Coterra Energy Houston $5.8B
Technology	5	$198B
#44 Dell Technologies Round Rock $95.6B #87 Oracle Austin $53.0B #132 Hewlett Packard Enterprise Spring $30.1B #193 Texas Instruments Dallas $16.3B #406 Match Group Dallas $3.4B
Engineering / Construction	4	$72B
#228 Quanta Services Houston $23.7B #258 Jacobs Solutions Dallas $16.3B #318 AECOM Dallas $16.1B #279 Fluor Irving $16.1B
Energy Services	3	$60B
#136 Baker Hughes Houston $28.5B #154 Halliburton Houston $23.1B #368 Smith International Houston $8.4B
Utilities	3	$41B
#194 Vistra Irving $16.3B #211 NRG Energy Houston $15.4B #259 CenterPoint Energy Houston $9.4B
Healthcare	2	$330B
#9 McKesson Irving $309.0B #163 Tenet Healthcare Dallas $20.6B

Price history

-5.1% since first listed

3 events — show timeline

2026-05-12 Price Changed $469,900 MCALLENMLS
2026-02-24 Price Changed $485,000 MCALLENMLS
2025-10-22 Listed $495,000 MCALLENMLS

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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