Harrington Plan

Allen, TX 75013

$249,000D-

2 bd · 2.0 ba · 1,524 sqft · Built — · Townhouse · Active · 371 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,465/mo
• Mortgage (P&I): −$2,203
• Tax + insurance: −$700
• HOA: −$0
• Vac / Maint / Mgmt: −$518
• Net cashflow: $-956/mo
• Annual: $-11,467/yr
• Cap rate: 3.56%
• Cash-on-cash: -9.75%
• DSCR: 0.57
• 1% rule: 0.59%
• Cash to close: $117,624

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $249k. Condition is rated poor.
• At list price, monthly cash flow is $-956 ($-11k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $247k (1.0% below list).
• It's been on market 371 days — a 12% lower offer ($219k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $219k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#34 in TX, #1,678 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: cost of living C-, commute F.
• Allen ISD (suburban): math 64% / reading 63% proficiency, ranked #22 of 826 in TX (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Dr E T Boon El (math 73% / reading 66%, grade A-, #146 of 4,322 statewide, top 4%, 855 students, 12% FRL); Allen H S (math 87% / reading 22%, grade C-, #379 of 1,632 statewide, top 26%, 5,317 students, 0% FRL).
• Watch-outs: property tax is 2.5% of price.
• Market conditions: Rents soft (-3.0%/yr); 571 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 48d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 72% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 19,194 units permitted in Collin County in 2024 (3,988 in 5+ unit buildings).
• Collin County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.6% vs local median 2.6% in Allen — 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 371 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The roof footprint is visible, but no specific details about the roof condition can be determined from the satellite image.
• Major: exterior — The satellite image shows a large, open lot with no visible structures or landscaping.
• Major: landscaping — The satellite image shows a large, open lot with no visible landscaping or curb appeal.